New Regulations Require Online Platforms to Report Transactions to Tax Authorities

Online platforms such as Vinted, OLX, and Allegro will now be required to report transactions to the head of the Polish tax office. These new regulations, implemented to comply with the EU directive DAC 7, aim to combat tax evasion and improve tax collection. Even social media platforms that facilitate the sale of goods, such as Facebook groups, will fall under this reporting obligation starting from September.

Piotr Juszczyk, a leading tax advisor at inFakt, explained that individuals who sell personal items, like clothes and other belongings, will only be subject to tax obligations if they sell these items within six months of purchasing them. For example, if someone bought something in January and sells it in August, they can do so without incurring any taxes, even if they make a profit.

However, if individuals engage in commercial activities, such as buying items with the intention of selling them for profit, and conduct these activities in an organized and continuous manner, it will be considered a business activity and subject to taxation. Even if the six-month threshold is exceeded, these commercial sales will still be subject to taxes.

These new regulations aim to ensure that online platforms and sellers fulfill their tax obligations and contribute their fair share to the national tax revenues. By increasing transparency and reducing tax evasion in online transactions, the authorities hope to enhance tax compliance and generate additional revenue for public services and investments.

These reporting requirements are part of broader efforts to adapt tax regulations to the digital economy and keep pace with the changing nature of business transactions. As online platforms continue to grow and play a significant role in the economy, it is essential to establish mechanisms that effectively address tax compliance in this sector.

Source: Piotr Juszczyk, inFakt – Polish tax advisor
Definitions:
– DAC 7: EU directive focused on automatic exchange of information for tax purposes
– Vinted: Online platform for buying and selling second-hand clothing and accessories
– OLX: Online marketplace for buying and selling various goods
– Allegro: Polish online auction and shopping website
– KAS: Head of Polish tax office