Selling or Buying Second Hand or Used Items? This Can Be Subject to Taxation
Selling second-hand items in Poland, whether through online platforms like Allegro, OLX and Vinted, or via personal transactions, can have tax implications. Understanding these regulations is essential to ensure compliance and avoid potential legal issues.
Personal Income Tax (PIT)
According to Polish tax law, income from selling used items may be subject to Personal Income Tax (PIT) if the sale takes place within six months from the end of the month in which the item was purchased. If you sell an item before this period expires, any profit must be declared in your annual tax return and taxed according to applicable income tax rates. However, if the sale occurs after six months, it is exempt from taxation (❗Note, it shouldn’t be part of your entrepreneurship activity or the one that is regular and can be considered by tax authorities as commercial).
Value-Added Tax (VAT) Considerations
Individuals who occasionally sell their personal belongings are generally not required to pay VAT. However, if selling second-hand goods becomes a regular and organized activity, resembling a business operation, the seller may need to register as a VAT payer. If annual sales revenue exceeds PLN 200,000, VAT registration becomes mandatory, and a 23% VAT rate might apply to sales.
Tax on Civil Law Transactions (PCC)
In some cases, particularly when selling high-value goods such as cars, the buyer may be required to pay the Tax on Civil Law Transactions (PCC). General rule is if you’re buying any used items for above 1,000 PLN, you have the tax liability of 2% of the item's market value and applies if the sale is between private individuals and is not subject to VAT. If applicable, the buyer must submit a PCC-3 form and pay the tax within 14 days.
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New Reporting Obligations for Online Platforms
From January 2025, Poland is implementing the DAC7 directive, which requires online marketplaces like Allegro, OLX, and Vinted to report user transactions to tax authorities. This measure aims to increase transparency and reduce tax evasion in the online second-hand market. Users selling frequently or earning significant income from online sales may face closer scrutiny from tax authorities.
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Additional information in Polish: