Sell Online In Spain As a Private Individual
Have you ever purchased or sold any goods online, new or second-hand? Maybe you asked yourself about the legal or tax repercussions to sell online as an individual. To detect business people who are carrying out a covert economic activity without declaring their sales, the Treasury inspection has set its objective on the purchase of goods through Internet platforms. For this reason, it is crucial to know the details of these operations.
From the seller’s point of view
The main risk that the seller assumes in an online sale is that they consider him a merchant, that is, that he carries out a commercial practice. Obviously, if you only sell some second-hand objects from time to time, you should not worry.
Still, suppose you continuously carry out these types of operations. In that case, it is essential that you know what checks the Tax agency makes to determine whether a seller is considered a merchant or not (Court of Justice (EU) Room 3, 04/10/2018, nº C-105/2017).
1. If you carried out the sale on the platform in a planned way and if that sale is for profit.
2. If the seller has information and technical skills related to the products that it offers for sale that the consumer does not necessarily have, in a way that places it in a more advantageous situation to said consumer.
3. If the seller buys new or used goods intending to resell them, thus conferring on said activity a regular character, a frequency or a simultaneity concerning his commercial or professional activity.
4. If the products for sale are all of the same types or the same value, particularly if the offer is concentrated on a limited number of products.
If a court considers that the sales operations you carry out meet these characteristics, you would be considered a merchant. In this case, you would have to regularize your tax situation by declaring the sales made as a private individual, in addition to the penalties that the Tax Agency would impose on you for tax offences.
Suppose it is a sale between individuals in which you sell an asset for a lower price than the one you acquired. Then you will not have to declare any capital gain in your income tax. However, you cannot include a loss, as it is considered that the loss derives from the consumption of said good.
From the buyer’s point of view
Although the seller has the risk of being considered a merchant, in the case of continued sales with the fulfilment of specific requirements, the buyer only has one obligation, which is none other than to settle the ITP (Property Transfer Tax) in any case (usually 4%, although the percentage may vary in some communities).
The usual thing is that the sale prices of second-hand goods between individuals are relatively low. Even if the Treasury detects the operation, the economic repercussions would be very low.
But let’s imagine that someone sells a bicycle for a price of € 4,000. Since the parties to the operation are in different provinces, they agree to make the payment through account deposit. As it is an operation greater than € 3,000, the bank communicates the income to the Treasury. The latter considers that the seller has obtained an unjustified capital gain. So they must pay taxes for it.
That is why it is very convenient to present the form 600 in the Council of your community and settle the 4% of ITP. That way, you can prove that it is a sale and not an unjustified capital gain. Even if the buyer refuses to pay the tax, we recommend declaring it even at your own cost.
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