Income Tax - Do you have to report income from an ancillary activity?

Text Version

(Title and Thematic)

Taxes

Sale of second hand goods

(SMS chat with friends)

・ Are you coming with us for next weekend in Barcelona?

・ Yes, I can afford it, I sold a lot of stuff on the Internet and during the garage sale in the neighbourhood. It's all beneficial, right in the pocket!

・ You go a little fast. Set aside for the taxes to pay on this income. You know you're gonna have to declare them?

(Idea received)

"I have to report to taxes the income from the sale on the Internet of objects and goods of which I no longer have the use. ”

FALSE

(Expert response)

It's a received idea!

Generally, you do not have to pay tax on the income you earn from one-time sales of items you no longer want.

However, the rules vary depending on the type of goods you sell.

If you sell used cars, furniture or appliances that you want to get rid of, you never pay tax. For all other goods, you may pay tax if you sell for more than €5,000. You will have to pay it if you get a higher price than you paid when you bought it. It is a capital gains tax.

These rules apply equally to sales on the Internet, on an application, or face to face, for example during a garage sale.

Be careful, if you sell items you make, you are taxable on these revenues. You must declare them. Finally, be aware that if you buy goods to resell them, you are also taxable on the income from the resale.

(Key Points Reminder)

・ Tax-free sale without limit of amount if you sell your car, furniture or household appliances.

・ For sales above €5,000 excluding cars, furniture or appliances, tax payable if you make a capital gain.

・ Taxable income if you manufacture or purchase items specifically for sale.