More and more people are using platforms such as Ebay and Etsy to sell second-hand or homemade products. But from February 2023, private sellers will have to deal with a new tax regulation. The Platform Tax Transparency Act (PStTG) was introduced to combat potential tax evasion in private transactions on these platforms. The law obliges platforms to report information on profits from private transactions to the tax office. Rental platforms such as Airbnb are also affected by this regulation.
Reporting obligation for sellers
The new regulations stipulate that sellers who sell more than 30 items per year or earn more than 2,000 euros must be reported to the tax office by the platform operator. These limits apply per platform. This means that sellers who are active on both Ebay and Etsy must consider both limits separately. The information reported includes names, dates of birth, addresses, tax identification numbers, bank details, transactions and sales revenue.
The tax office checks whether sellers have exceeded the defined limits and are therefore considered commercial traders. In doing so, attention is paid to whether used items and private sales are involved or whether someone trades regularly and commercially on the platforms. Regular rentals of real estate are also considered commercial trading. The main criterion for the tax office is the intention to make a profit.
As a seller on platforms such as Ebay and Etsy, you should now prepare yourself for possible inquiries from the tax office. Accurate documentation can help to prove the private nature of your sales. Keep a sales diary in which you record all items with new and sale prices. This way, you can prove that these are private sales and that there is no intention to make a profit. It is also important to note that the tax office will take a closer look if the same goods are sold repeatedly or if items are bought at a low price and immediately resold at a high price.
Effects on sales prices
The new regulations not only affect sellers, but also the platform operators themselves. They are obliged to forward the necessary information to the tax office. To do this, they must take appropriate measures to record and store their sellers' data.
Platforms such as Ebay and Etsy have already taken appropriate precautions to meet the requirements of the PStTG.
The introduction of the PStTG could also have an impact on selling prices. Some sellers could increase their prices to cover the additional tax charges. This could cause prices on platforms such as Ebay and Etsy to rise overall. Buyers should take this into account when making their purchasing decisions and possibly look for alternatives.