Clearing out or trading?
Revenue doesn’t use a number of sales to decide. It looks at the whole picture, using what it calls the “badges of trade”:
- What you sell: things bought to resell, rather than your own belongings.
- How long you owned it: buying and quickly selling on points towards trading.
- How often: regular, repeated sales of similar things.
- Work done to it: repairing, improving or repackaging things to sell.
- Why you sold: needing the money or clearing space, compared with selling to make a profit.
- Your motive: buying things with the aim of selling them at a profit.
Someone clearing out a wardrobe isn’t trading. Someone who buys clothes at charity shops to sell on Vinted, or makes candles to sell on Etsy every week, probably is.
If you are trading
- Declare the profit. Revenue says that if you’re an employee and your extra income is under €5,000 a year, you can declare it in myAccount on your income tax return. Over €5,000, you need to register for self-assessment and file a Form 11.
- Claim your costs. Platform fees, postage, packaging and what you paid for stock reduce your taxable profit.
- Register for VAT if your sales of goods go over €85,000 in a year.
- Keep records of every sale and cost.
Does Vinted or eBay tell Revenue?
Yes, for some sellers. Under EU rules known as DAC7, online platforms report sellers to Revenue each year. Revenue’s guidance says sellers of goods with fewer than 30 sales and less than €2,000 in a year aren’t reported. Reach either 30 sales or €2,000, and the platform reports you, and must send you a copy of what it reported.
Being reported is about transparency; it isn’t a tax bill. If you’re only selling your own things, there’s usually no profit to tax, even if you pass the limits. But Revenue may ask questions, so it’s worth keeping a note of what you sold and roughly what you paid for it.
Selling something valuable
Personal possessions such as jewellery, paintings or furniture are “chattels”. Capital gains tax can apply if you sell one at a profit, but Revenue exempts a chattel sold for €2,540 or less, and things that wear out, such as cars, are usually exempt too. If you’re selling something valuable for more than you paid, check with Revenue or a tax adviser.
Official sources
- Revenue: Is your extra income taxable?
- Revenue: DAC7 excluded sellers
- Revenue: chattels exemption (Tax and Duty Manual)
This page is general information, not tax advice. For your own situation, check revenue.ie or speak to a tax adviser.