The Supreme Court principle: regularity matters, not the amount
Those selling on Vinted, eBay or similar platforms often feel safe because «these are my own things» or «I don't earn that much». The Court of Cassation has made clear, however, that these arguments do not hold up against the tax authorities.
The case involved someone who had sold 1,600 pairs of shoes over two years. The individual claimed to be a private seller offloading personal items. The judge responded that, whatever the narrative, the activity constituted commercial trading carried out without a VAT number.
«What matters is not how much you earn but the regularity of the activity. Whoever buys to resell, manages shipments systematically and operates on a continuous basis is a trader in the eyes of the law, even without a VAT number.»
The three warning signs that turn a hobby into a business
How can you tell whether your online selling is fiscally a hobby or a trading activity? Three revealing factors:
- You buy to resell: you regularly buy goods at one price to sell at a higher one
- You ship continuously: you manage daily or near-daily shipments, like an online shop
- You have turned your space into a warehouse: the quantities of goods you handle go well beyond normal personal possessions
If you fall into even one of these patterns you are already in a grey zone. All three, and the tax authorities have strong grounds to contest unlicensed trading.
From 2024: platforms report your name to the Revenue Agency
The situation became even more concrete with the entry into force of DAC7, the EU directive transposed into Italian law that requires digital platforms — Vinted, eBay, Amazon, Airbnb and many others — to report sellers' data to the Revenue Agency when they exceed certain thresholds.
The thresholds are relatively low: 30 sales in a year or €2,000 in revenue. Those who exceed them automatically enter the tax authority's database. This doesn't mean an automatic fine, but it does mean you are «on the radar» and could be subject to an audit.
Who has nothing to fear
The rules do not affect those who occasionally sell personal items. If you sold a pair of jeans that no longer fit, your grandmother's dinner service or old school textbooks, you have no problem. The tax authorities have no interest in chasing someone who earns a few hundred euros a year from their own possessions.
What to do if you are in a grey zone
If you realise your situation is ambiguous, the simplest solution is to open a VAT number (possibly under the advantageous flat-rate regime for low turnovers) and regularise your position. The cost of not doing so — penalties, interest, back taxes — far outweighs the cost of compliance.