Should individuals selling second-hand items such as clothing and books online through platforms like Vinted or OLX declare these transactions on their tax returns? The straightforward answer is: “Not yet, but active sellers should keep tax authorities informed.”
This explanation is provided by DECO PROTeste, which clarifies that “online sales of second-hand items (e.g., books or clothing) between individuals are currently not subject to income tax or any other taxes and therefore do not need to be declared for tax purposes”.
Nevertheless, DECO PROTeste notes that “the directive aimed at combating tax fraud and evasion, as well as money laundering, has already been transposed”, introducing “a distinction between regular sellers who dispose of items because they no longer need them or for financial necessity and professional sellers”.
Are you an active seller? Pay attention to this
The transposition of the directive into Portuguese law mandates that platforms “communicate data regarding active sellers to the Tax Authority”. These rules have been in effect since 2024. To trigger communication, sellers must reside in an EU Member State and not be among those exempt.
Individuals are considered exempt if they “register fewer than 30 transactions annually and their financial return does not exceed two thousand euros within a calendar year”. This implies that most users of second-hand sale platforms will be considered exempt and will not need to take any action with either the platform or the Tax Authority.
However, “this does not apply to active sellers”. Once a seller is deemed active by the platform, they “will be contacted to complete the DAC7 declaration. The contents of this document will then be communicated to the Tax Authority”.
“Platforms such as Vinted have already sent emails to affected users at the start of 2025, indicating that the DAC7 declaration ‘is for your reference only'”. These emails contain a link to the platform where users can find a document detailing total earnings for 2024, the number of billed orders by month and quarter, and submitted personal data. If users identify errors, the declaration includes a link for corrections,” advises DECO PROTeste.
What happens if data is not communicated to the tax authorities?
“If a consumer fails to provide the requested information, they will not face financial penalties, unlike the platform, which could incur substantial fines. However, they will be prohibited from continuing to sell through that channel and will have their ongoing payments suspended until the obligation is fulfilled,” states DECO PROTeste’s website.
