Selling on Vinted and Wallapop? You could owe tax in Spain

For those trying to earn some spare cash by selling second-hand goods on platforms like Wallapop or Vinted, there’s a new tax development you should be aware of.

The Spanish tax authorities are stepping up their efforts to ensure compliance with a new European directive that requires these online marketplaces to report certain customer transactions

This recent change stems from a European directive now in force across the EU, which obliges platforms like Wallapop and Vinted to share transaction data with tax authorities. Specifically, if you’re selling items and your earnings surpass €2,000 in a year or if you complete more than 30 transactions within the same period, your earnings will need to be reported for personal income tax purposes.

Vinted and Wallapop: What happens if you fail to declare your earnings?

Failure to declare these earnings could result in fines or other penalties. Already, some users have found themselves on the receiving end of such fines. However, Wallapop, one of the affected platforms, has noted that these changes will likely impact only a small fraction of their user base – less than 1 per cent, according to their estimates.

Despite the new reporting requirements, both Wallapop and the Spanish Association of Tax Advisors (Aedaf) have reassured users that the way second-hand sales are taxed hasn’t fundamentally changed.

For most, especially those casually selling the odd item here and there, the new rules won’t mean much of a change. Wallapop’s user base is huge – boasting over 19 million users – and the vast majority won’t hit the taxable threshold in a typical year. However, it’s still important to stay informed.

If you do find yourself regularly selling items online, it’s crucial to understand when and how your earnings might be taxed. The directive focuses primarily on those who make a profit from their sales. In practical terms, this means if you sell something for more than you originally paid for it, you might need to declare that profit as a capital gain.

For private individuals, any profit should be reported under the section ‘capital gains and losses derived from the transfer of other assets’ in your tax return, starting in box 1624. The tax rate on these gains ranges from 19 to 23 per cent, depending on the amount of profit.

Professional sellers vs. casual sellers on Vinted and Wallapop

There’s a clear distinction between professional and casual sellers. If you’re a professional seller on these platforms, you’re required to pay taxes just like any other business. This involves issuing an IVA (sales tax) invoice for each item and including your earnings in your tax return.

On the other hand, casual sellers typically won’t face any tax implications unless they are making a profit.

The best course of action? Keep selling those second-hand goods, but if your sales start to edge towards the thresholds, it might be time to consult with a tax advisor to ensure you stay on the right side of the law.

Additionally, watch out for online scammers. Both Vinted and Wallapop have guidelines on how to stay vigilant.