If you buy or sell on platforms like OLX and Vinted, read this!

If until now things were more or less simple in the online world, now everything is going to get more complicated. All sales that were made on platforms such as OLX, Vinted and other platforms were in most cases direct sales. In other words, it was sold, bought and everything without much control. Now everything will change. Buying and selling online will be a much more controlled process. So until now, people sold and bought and didn’t have to report to anyone. Now in 2024 we will have tighter rules.

If you buy or sell on platforms like OLX and Vinted, read this!

Portugal is transposing the new European rules into national legislation. In practice, there is one thing that comes out of this immediately. Finance will now control online sales (or purchases) above 2 thousand Euros. However, it is not necessary to exceed this value to stay on the radar. In fact, it is enough to make more than 30 transactions.

At this moment the Tax Authority It is even evaluating people’s activity on these platforms. This is to understand how much money is actually circulating. Of course, no one needs to be a great researcher to understand that the amounts are significant.

However, Vinted, OLX, Amazon and other platforms are some examples of what will be more controlled. So if someone exceeds sales of more than two thousand Euros, this will have to be communicated to finance. Although it seems like a huge amount, it really isn’t. For now we are not talking about a single purchase. There could be several. Furthermore, to achieve this, you simply need to sell, for example, an iPhone and a console.

As we mentioned at the beginning, this comes into force in 2024.

This is due to a European Directive called DAC7

But what is the DAC7?

DAC7 is an EU tax directive that requires operators of digital platforms in the EU to report personal and business information about their suppliers to tax authorities. DAC7 defines digital platforms as any software that allows sellers to connect with buyers. This includes loans, services, products and peer-to-peer platforms, as well as applications for food delivery, car rental, transport services, among others.

DAC7 was created taking into account tax transparency rules and is intended to ensure that no tax goes undeclared, since the sharing and odd job economy has, until now, made it easier to hide income tax.

Who is affected by DAC7?

The platforms affected by reporting obligations are quite simple:

Rental of real estate, both residential and commercial. Examples of this are Airbnb.
Rental of any means of transport.
Provision of personal services. For example, Uber, Bolt and Wolt.
Sale of goods. For example, Ebay and OLX.

The information that needs to be communicated is quite simple. Includes:

• Seller identification information: name and date of birth.
• Seller demographic information, such as your primary address;
• Tax identification number (TIN);
• VAT registration numbers;
• The identification code of the seller’s financial account;
• Commercial registration numbers;
• The amounts paid to sellers, as well as platform fees for each quarter;
• The number of relevant activities for which they paid the seller;

However, it is necessary to provide all information before January 31, 2024. And before January 31 of each following year.