Second-hand sales and their reflection Which second-hand sales are taxable in income tax? What exactly is declared? Second-hand sales must be declared in the tax return if they generate profits. The difference between the sale price and the purchase price is considered profit, excluding associated expenses. If the sale is at a loss, this cannot be included in the declaration. It is important to keep proof of purchase to avoid problems with the Treasury and, if the sale is done professionally, to register as self-employed. We will tell you everything below.
We all know that second-hand shopping is constantly growing due to its many advantages. For example, adding unique or limited items to your wardrobe, buying things at a lower price than the purchase price, saving you money, helping the environment…
Plus, if you’re the one selling, you get to get rid of items you no longer want or don’t use regularly, and you can make a real fortune. And right away. It seems like everything is an advantage, right?
But, did you know that second-hand sales must be declared? Keep reading because this article contains what many users continually ask us.
What exactly is declared? Second-hand sales and their reflection
What is the main problem?
Are there other taxes to consider?
In order to avoid surprises, should we try to keep a record of the operations we carry out?
How can it be justified that there has been no capital gain?
On platforms such as the well-known or similar, what is sold are “things”. Well, you see, in the law, these “things” are called “ assets” . just like when we sell shares.
Therefore, what is declared in this type of operations is the profit derived from the sale on Wallapop or Vinted.
Person photographing second-hand clothes with his mobile phone to sell online, highlighting the need to declare second-hand sales in the income tax return.
What exactly is declared?
Well, it’s clear: The biggest problem is knowing how to calculate this profit.
What the law tells you is that the profit is calculated by the difference between the sale value and the purchase value, minus the costs associated with the transaction of each of them.
What would this mean? That since we normally sell at a loss on these platforms (the purchase value is higher than the sale value), we would have a capital loss.
However, this is not entirely true, as the standard states that:
If you have profit, you have to declare the profit.
If you have losses, they cannot be included in the declaration, since they are considered losses derived from consumption.
So what do we do?
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Are there other taxes to consider?
In principle no, unless we are professionally dedicated to the sale of second-hand items.
But if this were the case, what we would be carrying out would be an economic activity , not sporadic sales that are considered as capital gains and losses.
A person receiving the keys to a car from a private individual who has sold it to them, highlighting the importance of declaring second-hand sales to avoid tax problems.
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In order to avoid surprises, should we try to keep a record of the operations we carry out? Second-hand sales and their reflection
It is advisable that we keep a record , and above all that we have proof of the things we sell.
All this so that, in the event of a review by the Treasury, we do not have to compute the sale as a capital gain. Because, if this happens, the purchase price, as we traffic campaign: how to diagnose problems cannot justify it, will be zero, and we will pay tax on the total sales value of the product we have sold.
Does it matter whether something is sold new or second-hand?
If you sell something new, you will be considered to be carrying out an economic activity
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How can it be justified that there has been no capital gain?
Let’s differentiate two situations:
If we do not have them, we could try to argue through other means of proof the purchase bjb directory value (finding the price of the product at the time you bought it on the Internet). But the Treasury may understand that this is not properly justified and we may have to
pay taxes on the profit, in its entirety?
In short, if you have sold something on Wallapop or any other platform and you want us to advise you so that you don’t get any surprises from the Administration… Don’t hesitate to go to Taxdown. The best platform in the universe.
