Selling second-hand on Vinted should not come with tax paperwork: our Marketplace CEO explains what the reporting rules mean for members

Adam Jay is CEO of Vinted Marketplace, where he leads the teams working to make second-hand the first choice for millions of members across Europe and beyond.

At this time of year, tax reporting is one of the topics our members ask us about most,  even though selling their second-hand items doesn’t mean they have to pay tax. We sat down with Adam Jay to explain what members need to know about current reporting requirements, what they mean, and why Vinted welcomes the European Commission’s plans to simplify the rules.

Part one: what sellers need to know 

Let’s start at the beginning. Why does Vinted have to share information about some sellers with tax authorities?

Like all online marketplaces in the EU, we follow the “DAC7” regulation. That is a set of EU rules that require online marketplaces like Vinted to share some information about eligible sellers with tax authorities. This applies to sellers who make 30 or more sales, or earn more than €2,000, in a calendar year. The UK has similar rules, with a threshold of 30 items sold or around £1,700 in sales.

Does being asked for personal details mean I have to pay tax?

No, and this is the most important thing I’d want people to take away. Understandably, some people worry that being asked for their personal information means they’ll have to pay tax. In the vast majority of cases, they won’t. Selling your own used items for less than you paid for them is generally not taxable.

Does anything change in how I use Vinted?

No. You can keep selling the jeans that no longer fit or the clothes your children have outgrown, just as you do today. Most people selling on Vinted are simply clearing out their wardrobes, not running a business, and that’s exactly what Vinted is for. From November, we ask new members who reach these thresholds to share a few details through the app. If that applies to you, you’ll get a notification with everything you need. It’s a reporting step, just like last year, and it doesn’t mean you will have to pay tax. If you don’t hear from us then you do not have any information to provide. 

Part two: a welcome step forward

The European Commission has proposed changes to DAC7. What are they?

In June, the Commission proposed simplifying the rules as part of a wider ‘DAC Recast’ to eliminate unnecessary requirements. Sellers would no longer be reported based on their number of sales alone, and the reporting threshold for selling goods online would rise to €3,000.

Why does Vinted welcome it?

Because it would make the rules fairer for everyday sellers. Today, someone clearing out their wardrobe can easily make more than 30 sales while earning just a few hundred euros, yet still be asked to provide extra details. Under the proposed changes, we estimate that around 3.5 million of our members would no longer need to do so. That means less paperwork and less unnecessary worry for millions of people.

Why does this matter for second-hand?

We believe that the easier it is for people to sell things they no longer need, the more people will give those items a second life. Simpler, fairer rules can help encourage more people to choose second-hand, and our team works hard to make the whole process as clear and easy as possible for our members.

When would the new rules come in?

The proposal still needs to be approved by the Council of the EU, so for now the current rules still apply. We’ll keep members updated as things progress.

Any last tips for members?

If you get a notification asking for details, don’t worry. Follow the steps in the app before your deadline, we’re working hard to make it as easy as possible for our members. You can find more information in our Help Centre.

And remember, being asked for details doesn’t mean you owe tax. Keep selling as you do today, and keep giving your items a second life.

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Disclaimer: Vinted is not in charge of setting tax limits or processing taxes and if anyone has a question about the personal taxes they should always contact their local tax authority. Vinted cannot give tax advice.