Selling old clothes online is not a business, no tax will be charged

Polish tax authorities have clarified that selling used personal items online, even in large quantities, does not constitute a business activity subject to taxation. This clarification comes as a response to new EU regulations, specifically Directive DAC7, which mandates online platforms to report sellers engaging in frequent or high-value transactions.

The directive requires platforms such as Allegro, Vinted, and OLX to submit reports to tax authorities on sellers who conduct at least 30 transactions annually or sell items totaling more than 2,000 euros. These reports, first submitted in January 2025, have led to tax offices sending inquiries to individuals identified in the data.

However, the tax authority's latest interpretation, prompted by a 43-year-old woman selling clothes from her wardrobe, confirms that such sales are not taxable as business income. The woman, who sold over 67 items in April across 37 transactions due to significant weight fluctuations and a tendency to keep unused items, argued her sales were not for profit but for personal needs. The interpretation states that selling items from private property, not acquired for commercial purposes, is merely managing personal assets and not a business activity.

This distinction means that while reporting is mandatory for platforms, individuals selling their own used goods are not subject to business-related taxes. Generally, personal income tax (PIT) is not required for these transactions, provided the item has been owned for at least six months since its purchase.