Simply sell on eBay…

There is no question that eBay has revolutionized the sale of used items. Simply place a minimum bid of €1 and see what happens. The profits? They will be tax-free and anyway, nobody is interested in that anyway.

Selling on eBay – tax law considerations

It’s not quite that simple, because the tax authorities are obviously very interested in eBay activities. This is shown by a relatively recent ruling by the Hessian Fiscal Court from 19.07.2018: “The trade in consumer goods (e.g. from clearing out and household liquidations) on the eBay internet platform, which has been carried out sustainably for years and which are each placed on the eBay auctions with a minimum bid of €1, is generally to be classified as a commercial activity.”

Selling on eBay – When does it become commercial?

Admittedly, the plaintiff in these proceedings had a not exactly small turnover of EUR 90,000 per year and worked with four eBay accounts and two bank accounts in a not exactly unprofessional manner. In the statement of claim, she also stated that she was selling the items because she enjoys watching the auctions. For understandable reasons, this justification was not sufficient for the court. Don’t be tempted to use such arguments, check whether income, even if it comes from the private sector, may have tax consequences.