Sale of items on the Internet: how to complete your tax return?

[IMPOTS 2022] Did you go through Leboncoin or eBay to part with some of your goods last year? You may have to report income from these transactions on your 2022 tax return.

It’s time to complete your tax return. The reporting period started on April 7. Deadlines range from May 19 to June 8, depending on the mode of declaration and the department number. All taxpayers are required to carry out this administrative procedure: it makes it possible to calculate the total amount ofincome tax for which you are liable for the tax year. In view of what you have paid via the withholding tax, the tax authorities establish whether you must pay a balance of income tax in September 2022.

Wages, pensions, income from property or movable capital… Many incomes are subject to income tax. Income generated by the sale or resale of items on the Internet is no exception. How do you know if you should mention them in your tax return ? If the sales are occasional, it is not a professional activity. You are still required to declare the following income:

  • Income generated by the sale of precious metals (jewellery, works of art, antiques) or if the transfer price is greater than 5,000 euros, since you are subject to a flat rate tax, which must be paid within the month following the transfer.
  • Income generated by the sale of goods whose price exceeds 5,000 euros : “you are subject to the tax regime for capital gains on the sale of movable property at the rate of 19%, which you must pay within the month using form no. 2048-M”, we warn on the Ministry of Economy website.

What happens, on the other hand, if you buy or manufacture goods that you market on the Internet? The revenue generated is considered as industrial and commercial profits (BIC). Two tax regimes apply:

  • If your income is less than 176,200 euros for the year 2021: you are subject to the micro-BIC diet. The amount of your income must appear in box 5NO (form 2042-C PRO if you use the paper tax return). A deduction for costs applies automatically (71%). Therefore, you are taxed on 29% of your receipts. If your income does not exceed 305 euros, you will not pay any tax.
  • If your income is greater than 176,200 euros for the year 2021: this is the real diet which applies. It will be necessary to subscribe to the professional declaration n°2031-SD. It has the advantage of deducting all of its costs, but you will also have to declare the VAT.

Since 2020, collaborative platforms have been required to transmit information relating to transactions carried out during the tax year to the tax authorities. Beware, therefore, if you are tempted to ignore your income. You expose yourself to penalties from the tax authorities.

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Sale of items on the Internet: how to complete your tax return?

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