Taxation of Second-Hand Sales
19th April 2023
What are the income tax rules that apply on the sale of second-hand goods in France?
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As a general rule, income from the sale of second-hand goods is exempt from income tax, although there are circumstances when it must be declared.
The occasional sale of personal goods which are surplus to your requirements is exempt. This includes the sale of a vehicle, furniture or electrical goods or equipment.
The rule applies provided the goods were not purchased with the intention of reselling them at a profit.
Where you are trading goods for profit it must be declared as a commercial activity, for which you should also be business registered.
This includes the regular sale of goods on platforms such as eBay, Le Bon Coin or Vinted.
Despite advice to the contrary widely circulating on social media, the tax obligation does not arise only on sales above €3,000. It arises on all sales where you are engaged in a commercial activity, whatever the level of turnover.
This should be distinguished from the obligation of on-line platforms to report annually to the French tax office on users who have realised sales of over €3,000 AND more than 20 sales in the year. Both conditions must be fulfilled for the reporting obligation to arise. A copy of the report made by the platform is must also be sent to the user.
However, the fact that such a report is made does not by itself generate a tax liability; it is the activity itself which is the determining factor.
In addition to regular sales there are also two other circumstances where a tax reporting obligation arises.
First, in the case of the sale of assets for a price higher than €5,000, capital gains are potentially payable. However, vehicles, household goods and equipment are excluded, and the application of this rule is rare.
In addition, the sale of jewellery, antiquities, and art objects or precious metals, for more than €5,000 attracts tax, for which there is a distinct tax regime.
If a tax declaration is necessary it is made under ventes de marchandises et assimilées on the annual tax return, using whichever tax regime has been adopted by the taxpayer.
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