- From January 1, 2023, DAC7 instruction of the European Union requires platforms like Vinted to provide details of sellers’ transactions and income above certain thresholds.
- Completing DAC7 on Vinted is mandatory for sellers who create more than 30 sales the they earn more than 2,000 euros in a year.
- Taxation in Vinted depends on the frequency and amount of sales and the DAC7 declaration does not automatically entail tax obligations.
From 1 January 2023, the European Union has implemented the DAC7 Directivetax regulation directly affecting online sales platforms and their users, which aims to ensure greater tax transparency and fairness in the growing digital commerce sector.
According to DAC7, the popular second-hand sales platform, Vinted, is also required detailed data collection on sellers’ transactions and incomes exceeding certain profit thresholds.
Although the regulation actually applies from 1 January 2023, Many users only received a communication about the DAC7 at the end of the year, after you exceed the maximum sales limits to avoid filling it. Let’s see what the seller should do.
DAC7 statement for Vinted: who must complete it
Let’s start with a simple premise: the DAC7 it is a simple informational statementwhich is sent to the Revenue Agency so that it can monitor the sellers who are most “successful” on the platform to ascertain any irregularities.
The obligation only enters if one of the following conditions occurs within a calendar year:
- a seller has made 30 sales or more.
- a seller earns more than 2,000 euros from his sales on Vinted.
According to current regulations, Vinted is responsible for informing sellers that fall into these categories. Communication can be done in three ways:
- an immediate notification on the platform;
- a message in the seller’s Inbox.
- An email message.
Some users reported receiving a message on WhatsApp where a scammer pretended to be Vinted to extort personal data from the unsuspecting victim, so be careful: always verify the authenticity of communications and make sure they come from official accounts. A DAC7 declaration does not automatically result in tax liabilities.
However, they exist certain exceptions to the deposit for certain sellers; that is:
- listed entities;
- government agencies;
- sellers with a residence outside the EU
Issuance and tax return: sales taxes
The taxation of sales made through Vinted depends on several factors, in particular the frequency and amount of sales. As we said, the DAC7 statement does not necessarily entail tax obligations.
If sales are they are performed occasionally and do not amount to a significant amount, generally there are no tax obligations. Occasional sales, without a fixed and regular frequency, exclude the need for specific tax obligations.
However, it remains a fundamental aspect the total profit from sales. If in a year your total earnings exceed a certain limit, then you are subject to tax on all the income you earned in that period, as the activity ceases to be casual.
In these cases, it is always better contact an accountant to present your specific situation and to understand if there are any tax obligations.
DAC7 declaration for Vinted: how to complete it
Completing the DAC7 statement requires accuracy and care, since the information provided will be forwarded to the Revenue Agency. Please note that until January 31, 2024 the platform will send to the tax authorities all data for sellers related to 2023. However, with some foresight, it is possible to comply with this in a simple way.
The first step in compilation is provide your personal data. This includes:
- your full name as it appears on your ID or passport;
- the tax code or VAT number, if applicable;
- the date of birth, to be entered in the format DD/MM/YYYY;
- residence or main registered address.
In terms of financial transactions, it will be necessary provide the IBAN of the current account used for transfers from ‘Vinted Balance’. It is also important to determine if the current account holder is different from the name registered with Vinted.
Sellers should then report the amount of income earned on Vinted for each quarter, as well as the number of sales completed during the same period. Remember that a sale can be either a single transaction for one item or a transaction for a set of multiple items.
To find exact information you can go to “My orders“within the area”Profile” of the application. In some cases, you may be asked to provide certification of the data through additional documentssuch as an identity document or proof of residence.
Can I sell on Vinted without a DAC7 declaration?
If a seller asked to complete the DAC7 declaration ignores the relevant warnings and does not provide the requested information, the platform is forced to taking restrictive measures:
- it will not be possible to make transfers from Vinted Balance.
- funds accumulated in Vinted Balance cannot be used to make purchases on the platform.
- it will no longer be possible to use the built-in shipping options offered by Vinted to ship sold items.
How to avoid filling in the DAC7 form
The subject is complex and some strategies to avoid completing the DAC7 statement which may seem valid at first glance are completely ineffective.
A common assumption is that leaving the profits in the Vinted Balance, without transferring them to a current account, you can avoid reaching the limits that require completion of DAC7. However, this strategy is not efficient, since Vinted counts the total trades regardless of whether the profits are carried over or not.
Another case is to ask buyers make the payment directly to a different bank account, bypassing Vinted’s payment system. This method is not recommended as it reduces the trust between seller and buyer and offers no guarantee of payment after receiving the item.
An alternative that has been considered by some is cf exchange hands with cash payment. This method, however, falls under tax evasion practices, an action that is definitely not recommended and is completely illegal.
The only legal and safe way to avoid filling out the DAC7 form on Vinted is to just do it do not exceed the thresholds set for the declaration. This means keeping the number of sales below 30 items per year and/or ensuring that total profits do not exceed 2,000 euros in a calendar year.
DAC7, Vinted and other online platforms
Suppose a subject you sell various products both on Vinted and other online platforms. In this case is it necessary to complete the DAC7?
From a practical point of view it is possible to sell on different platforms while staying below the threshold to complete DAC7, however it is not recommended to go this way to avoid this requirement.
And in this case there is even a risk of tax evasion and after specific checks by the tax office you may be penalized. It should also be noted that there are precise legal limits under which the sale is possible on an occasional basis: when these limits are exceeded, you must also open a VAT number.
Vinted and DAC7 statement – FAQ
Not necessarily. It is necessary to declare if 30 sales are exceeded in a year or if profits of more than 2,000 euros have been achieved before the end of the year.
Only in certain cases, i.e. when the limits set by the DAC7 directive are exceeded. Find out how it works here.
If you do not complete DAC7 even though it is mandatory, Vinted will limit certain features of your account: you will not be able to make transfers from your Balance, use your Balance for purchases, or use the platform’s built-in shipping options.