In July this year new regulations came into force regarding the sale of things or renting apartments using popular platforms such as Allegro, Booking, or . Under the DAC7 directive, companies must collect data on sellers of goods and services and then submit it to the tax office. The aim is to reduce the number of cases of unreported business activity on the Internet, so if you sell used children’s clothes, cosmetics or electronics, you do not have to worry about additional costs. What exactly do the new regulations mean for Vinted users?
Selling on Vinted and taxes. What do the new regulations mean? Explains the CEO of Vinted Marketplace
Adam Jay joined Vinted in February 2022 as CEO of Vinted Marketplace. He would like to see second-hand shopping become the first choice for consumers around the world. This year, Sam plans to buy Christmas gifts only on Vinted. In an interview with us, he explains what sales on the platform look like after the introduction of new regulations.
Agnieszka Morawska: What does the DAC7 directive mean for Vinted users?
Adam Jay: Trading platforms such as Vinted are required to provide tax authorities with information about online trading activities. We are required to share information if a seller reaches certain thresholds – more than 30 sales or transactions over €2,000 in a calendar year. This means that Vinted contacts people who have reached the mentioned thresholds and asks them to complete a pre-filled form. You need your name, surname or PESEL number, then the data is transferred to the tax office. However, it is important to remember that meeting the threshold and requesting information does not mean you are required to pay taxes, as users who sell personal items on Vinted are generally not taxed. The tax rules themselves haven’t changed – it’s just a new reporting requirement.
AM: What does it look like in practice?
AJ: The thresholds only apply to a relatively small portion of Vinted members. Most of this portion will meet the transaction volume threshold (30 sales) and not the value threshold (above €2,000). This is because Vinted’s business model has a high volume of lower priced transactions. It is important to remember that reporting member details does not mean you will have to pay tax. Most Vinted sellers will not have to pay tax because members selling personal items on Vinted are generally not taxed. In terms of timing, we have started contacting sellers who meet reporting thresholds via in-app notifications, inbox messages, and banners. Information provided by members is encrypted and secure, and transferring information is a quick and easy process – it should only take a few seconds. If users do not receive any messages from Vinted, they do not need to do anything.
AM: So when selling used clothes, even if we exceed the reporting threshold (equivalent to EUR 2,000 or 30 transactions), we will not pay tax, unless we run a business?
AJ: That’s true. Reporting members’ data does not mean the obligation to pay tax. There is likely no tax to pay because selling personal items on Vinted is generally not taxable. However, under the DAC7 directive, Vinted will have to provide the authorities with information about members who have made more than 30 sales or sold items worth more than €2,000 on Vinted during a calendar year.
AM: Do these regulations also impact buyers?
AJ: No. DAC7 only applies to sellers who reach certain thresholds (making more than 30 sales or selling more than €2,000) during a calendar year.
AM: What are sales on Vinted currently like? Has the company observed changes in consumer behavior after implementing DAC7?
AJ: It’s a bit too early to notice any change in consumer behavior. We have been preparing for DAC7 for over 2 years to ensure it does not impact our members’ experience or business. Our teams work hard to make the process as smooth and comfortable as possible, so we are confident that our members are equipped with all the necessary information.
AM: What, if anything, has Adam Jay been searching for on Vinted lately?
AJ: I’m very excited because I just made my first electronics purchase on Vinted – a used smartphone that I gave to my 12-year-old child. Now I’m busy buying gifts, my goal for this year is to have “just a Vinted Christmas”.
AM: Finally, a question about your first purchases or sales on Vinted. Do you remember what it was?
I don’t remember the first purchase or sale, but I do remember listing a pair of shoes the first month they were on sale and they sold out in ten minutes, which was pretty amazing. Last month, our CFO put some speakers on sale and they sold out in less than a minute, which was even more amazing!
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