Registration under DAC7 is separate from determining if a seller is a national entrepreneur

• Registration under DAC7 is separate from the question of whether a seller is considered a business under national tax law.
• Platforms like Vinted or Marktplaats will report sellers’ transactions to tax authorities in other EU member states.
• The first exchange of these reports will take place in February 2024, providing insight into the number of Dutch sellers on digital platforms.
• Income tax is not owed if there is no source of income, and the determination of whether there is a source of income depends on all relevant facts and circumstances.
• Occasional sales do not qualify as entrepreneurship for VAT purposes, but regular sales may qualify regardless of profit.
• The VAT registration threshold is €1800 per calendar year (increasing to €2200 in 2025), and businesses below this threshold can use the KOR and avoid further VAT obligations.
• The state secretary does not support exempting revenue from the sale of second-hand items to promote the circular economy.

Source: taxlive.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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