Sales of second-hand items through online platforms have risen sharply. Many private individuals systematically sell items they once had for personal use. The key question is: when are these transactions considered business activity, and what does that mean for tax?
Legal framework – Article 21 of Law 4172/2013
According to article 21 of Law 4172/2013 (Greek Income Tax Code), when sales are made:
- systematically,
- on an ongoing basis,
- with the aim of making a profit,
they are considered income from business activity, even if the taxpayer has not registered a business.
“A ‘business transaction’ is any individual act by which a transaction is carried out, or the systematic carrying out of acts in the market with the aim of making a profit. Any three similar transactions taking place within six months are considered systematic. For transactions involving real estate, the period referred to in the second subparagraph is two (2) years. ”
When a private sale is not taxed as a business
The occasional disposal of personal items does not constitute carrying on a business.
Example: selling a few items you no longer need.
By contrast, when there are:
- 2–3 sales every month,
- steady activity,
- recurring income,
it is considered a systematic activity.
Bookkeeping – the €10,000 threshold (Law 4308/2014, article 39, 1b)
Individuals who, occasionally and as a secondary occupation, sell products or provide services, provided these transactions in total do not exceed €10,000 per year.
If annual sales revenue exceeds €10,000, the individual:
- must register a business,
- must keep accounting books,
- becomes subject to VAT and other obligations.
Tax return – codes 403–404
When an individual has not registered a business but has income from sales, it is declared in:
Codes 403–404 (Income from business activity without registration).
The taxable amount is the net profit:
Net profit = Revenue – Purchase costs (with supporting documents)
Purchase receipts are important, because without them the tax office may treat the entire revenue as profit.
How the income is taxed
Net profit is taxed under the business income tax scale
This article is for information purposes only and does not replace specialised professional advice.
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