Here’s what you need to know about it.
It’s time again for our least favorite moment of the year: doing our annual income tax. If you earn some extra money by selling your old clothes on Vinted, you might wonder whether you have to pay tax on it. Vinted and PorteRenee now provide clarity on that subject.
Tax on Vinted sales
Some time ago the news came out that from now on you have to pay taxes on your sales on Vinted. There are now all kinds of different rumors and news reports going around, so there is a good chance that you do not know exactly what the situation is. We will therefore immediately come home with the good news: you can breathe easy, because there will be no taxes on your second-hand sales! But what exactly is it?
To get started, here are three important facts to remember:
- Selling personal items is not taxed in the Netherlands.
- You don’t pay taxes even if you sell your personal items for a higher price than you paid for them.
- Generally, only companies that sell with the aim of making a profit may be taxed.
Lots of confusion
There have been confusing news reports and speculation about the tax authorities “monitoring your Vinted sales.” While new European rules have no impact on the users themselves, but are mainly important for the administration of platforms such as Vinted. Although taxes can be a complicated topic, we like to focus on the simple facts so we can give clothes a new life and not have to worry about taxes.
To clear up the confusion, Vinted asked Renée Lamboo of personal finance platform PorteRenee.nl to debunk some of the main myths surrounding the new rules: “The sale of personal items is not taxed in the Netherlands. You may have read something about 30 items or €2,000, but that is something different,” says Renée. “These are the conditions when platforms such as Vinted are obliged to share information with the tax authorities. Reaching that amount or number does not mean you have to pay taxes: selling personal items is not taxed,” she clarifies.
Examples
Whether you earned 300 euros last year from selling old clothes, sold 36 items from your own closet or sold items from your family and earned 2,200 euros: in all these cases you do not pay tax, because personal items are being sold.
“An example of an entrepreneur or trader: Daniel is a commercial trader who specifically purchases items and then resells them for more money to make a profit. This means that Daniel carries out a business activity, and therefore he may be liable for tax,” Renée explains.
So you can continue to sell your own clothes that you no longer wear on Vinted and give them a second life without worrying about taxes. Good to know!
Source: Grazia, Vinted and PorteRenee | Image: NL Image
