Business registration, small-business scheme, DAC7, VAT and income tax — reliably explained. Not legal advice, but the basics done right.
If you privately sell your own used things occasionally, generally no. As soon as you buy and sell with resale intent, the profits are subject to income tax — from the start, regardless of the amount. What's decisive is the intent, not the amount.
DAC7 is an EU rule, implemented in Germany's Platform Tax Transparency Act (PStTG). Platforms like Vinted and eBay must report seller data (income, sales) to the Federal Central Tax Office, which forwards it to your local tax office. So the tax office sees your platform revenue automatically.
Reported is anyone who makes at least 30 sales per year on the platform or takes in more than €2,000. Important: the report is just info to the tax office — it says nothing about whether you owe tax. You're taxable under the normal rules, possibly even below that.
In Germany yes, as soon as you resell systematically with profit intent. Business registration usually costs €20–60 at the trade office. In Austria a trade licence is needed depending on scale; in Switzerland self-employment applies above revenue thresholds. When in doubt, get tax advice.
If you stay under the revenue limits (currently €25,000 prior year / €100,000 current year, as of 2025), you can use the small-business scheme and don't charge VAT. But then you also can't deduct input VAT. Income tax on the profit still applies.
No, what's taxed is the profit (sale proceeds minus purchase price, fees, shipping and other costs), not the turnover. That's why cleanly recording purchase receipts matters so much — without proven costs you may end up taxing the full proceeds.
For used goods you bought from private individuals without VAT, as a reseller you can use margin taxation (§25a UStG): VAT applies only to the margin, not the full selling price. This significantly lowers the tax burden on second-hand, but requires clean records.
As a trader the retention obligation applies: invoices and accounting documents must be kept for several years (receipts 8 years, as of 2025 after the reduction; books/financial statements 10 years), and unalterably per the GoBD rules. A digital archive with purchase and sales data makes this enormously easier.
As a commercial seller you must provide a legal notice — also on Vinted/eBay. Without it, you risk warning letters. Likewise, as a business you must grant buyers a right of withdrawal (14 days), which private sellers don't have to.
Anyone who, as a business, ships packaged goods to end customers must register in the LUCID packaging register and join a dual system. This also applies to shipping boxes and filling material. For many small resellers this is the most frequently overlooked obligation.
Because platforms report automatically via DAC7, the tax office can cross-check undeclared income. Back payments, interest and, in the worst case, tax criminal proceedings are possible. If unsure, seek self-disclosure or advice early — declaring late is cheaper than being caught.
Income tax arises on the profit within your total income; there is a basic allowance but no separate “reseller allowance”. Trade tax only applies from €24,500 profit (allowance). For your specific situation, always check current figures or use tax advice.
Selling your own used private items without resale intent is generally tax-free and not a business. Only systematic buying and selling with profit intent makes you commercial.
As soon as you regularly make a profit, are unsure about business/VAT, or receive DAC7 reports. The cost is usually deductible and cheaper than a wrong tax return or back payment.
You pay income tax on your profit as part of your total income. Trade tax only applies from €24,500 profit (allowance) and goes to the municipality. Small resellers effectively often pay only income tax.
At your city's trade office (often online), with ID and a small fee. Afterwards the tax office sends you the tax registration questionnaire, in which you can, among other things, choose the small-business scheme.
The cash-basis profit statement: a simple profit calculation (income minus expenses) that's sufficient for most resellers. It's part of the tax return — good ongoing records get it done quickly.
Yes. For tax purposes, the income arises with the sale/credit to the Vinted balance, not only on payout to the bank account. This is often overlooked.
If in prior years you already sold commercially/with profit intent and didn't declare it, you should review this and, if needed, file a subsequent declaration. A timely voluntary disclosure is far better than later discovery — get advice on this.
Yes, DAC7 applies to online platforms in general, including classified-ad portals, once the reporting thresholds (30 sales or €2,000 per year) are reached. Pure listings without payment processing may be treated differently — check when in doubt.
No. As a small business under §19 UStG you don't show VAT and don't deduct input VAT. You issue invoices with the corresponding note. Income tax on the profit remains unaffected.
Only if you're liable for VAT or trade cross-border in EU B2B. As a small business you usually don't need it. You get the normal tax number via the tax registration.
The platform transmits your identity and annual income to the Federal Central Tax Office, which forwards the data to your responsible tax office. There it's cross-checked against your tax return. The report itself is not a tax demand.
Commercial sellers must observe the legal notice, right of withdrawal (14 days), warranty and, if applicable, packaging registration; private sellers don't. Anyone who poses as “private” but acts commercially risks warning letters and tax trouble.
Clearly document what are your own used items and what is stock bought for resale. Separate records (and ideally separate accounts) help you argue cleanly to the tax office if in doubt.
As a commercial seller you risk costly warning letters from competitors or associations. A correct legal notice and a withdrawal policy are quickly created and protect you reliably.
As a small business usually not. Those liable for VAT who sell above thresholds to other EU countries can use the OSS procedure to report VAT centrally. For small resellers this is rarely relevant — check as you grow.
It's not mandatory, but can make sense (e.g. liability for product/personal damage) once you handle larger volumes. For a clothing side income the risk is low — reassess as you grow.
Practical knowledge from the reseller community and experienced full-time sellers, summarized generally. Legal & tax matters follow official sources (incl. the German Federal Central Tax Office on the Platform Tax Transparency Act/DAC7) and do not replace tax or legal advice. As of 2026.
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