The tax authorities have set thresholds and, if these are exceeded, the money received must be declared in the income tax return.

The possibility of selling unused objects has become a lure for internet platforms looking for users in the second-hand market. For some consumers, these virtual sales outlets are an opportunity to earn some extra money.

Applications such as Wallapop or Vinted have crept into everyday life, but those who use them should be aware that the purchases and sales they make there may have to be declared to the Income Tax (IRPF). The tax authorities are keeping an eye on some cases.

Last week, the ministerial order regulating the forms to be submitted by the platforms was published. The Official State Gazette (BOE) of 5 February contains the informative declaration (form 238) to be completed by platform operators and the form required for registration in the new register of non-qualified foreign platform operators (form 040). Form 040 of the Tax Agency for the registration of internet sales platforms, published in the BOE of 5 February 2024.

The introduction of this new obligation for internet platforms comes from Council Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation, known as DAC 7.

The European regulation aims to control this type of operation, which, due to its novelty, has not been covered by any regulation to date. “I have a positive view of this directive because it aims to combat the black economy and tax fraud,” says Andreu Bové (partner) of the Spanish Association of Tax Advisors (AEDAF). This change from Europe has made it necessary to amend the General Tax Law 58/2003 of 17 December by introducing an additional twenty-fifth provision.

 

Limits for the obligation to declare income tax:

In the case of consumers, the clients of these platforms, their purchases and sales will only in some cases have an impact on their income tax return. This year, for the first time, the platforms will report these transactions “with a view to the 2023 tax year”, explains Bové. The income tax campaign will start in April and taxpayers will have to declare their income for the previous year.

“From now on, every January, digital platform operators will have to report to the Treasury on the activities of their users during the previous year, if they have carried out more than 30 operations or if they have generated income of more than 2,000 euros,” adds Benja Anglès, UOC Associate Professor of Financial and Tax Law. “The tax obligations of platform users have not changed, but what has changed is that from now on the tax authorities will be sure to have direct and detailed information on their activities, so that they can easily check whether users are complying,” warns the professor. In any case, the tax adviser considers it necessary to maintain a “minimum threshold so that the buyer does not have to declare because we are talking about ridiculous amounts”. In the majority of cases, the sums involved are small because they are second-hand items. If the above thresholds are exceeded, it will be necessary to declare whether a profit was made on the sale of the goods in the capital gains section of the personal income tax. It will be necessary to “put the amount of the sale and purchase price, your acquisition costs, and declare them one by one”, says the tax adviser. Users will have to provide the operators with “their tax data and give their consent for the platforms to transmit all their information to the tax authorities”, says Professor Anglès.

 

Recommendations in the event of a tax inspection:

The UOC professor acknowledges that the data on users’ activities on these platforms “are among the most private and difficult to trace”. This is why the tax authorities are now making sure that they have “detailed information on the most ‘active’ users, and with this information they can check whether users are declaring correctly and complying with their tax obligations”. In this way, they can cross-reference data and check “whether some of them are not actually making occasional sales, but have a regular activity for which they should be taxed professionally”.

As for continuing to use these means of buying and selling, he believes that “those who use the platforms to sell their second-hand goods, usually at a lower price than the purchase price, I would say that they can continue to do so without much concern”. In these cases, there will be no impact on their income.

On the other hand, people who carry out this activity on a regular basis, selling items that are not theirs and also earning money, “would have to declare it to the Treasury as a commercial or professional activity”. In this sense, he warns that from now on “the Treasury will have their data and, sooner or later, will send them a request for a tax audit or inspection”.

 

In Spain, Royal Decree 117/2024, of 30 January, develops the rules and procedures for due diligence in the area of mandatory automatic exchange of information communicated by platform operators.