tax regulations
Occasional sales and habitual sales
One of the principles underlying the rules relating to VAT number concerns the distinction between occasional sales and habitual sales. The difference is not due to the income earned, but rather to the way the activity itself is carried out.
If occasional sales take place sporadically and in an unorganized way, without continuity and without generating business income, habitual sales occur instead when the activity is characterized by habituality and continuity.
In all cases in which a taxpayer carries out a commercial activity habitually and continuously, specifically, there is an obligation to open a VAT number.
The revenue threshold and the obligation to have a VAT number
As mentioned above, the revenue volume earned through sales does not affect whether opening a VAT number is mandatory.
A very widespread false myth, for example, concerns the 5,000 euro turnover limit, below which it would not be necessary to open a VAT number. This is a baseless belief, precisely because revenue cannot be considered a requirement or parameter to be assessed in this context.
Online sales with VAT number: complete overview
Online sales take shape through a long series of different channels, ranging from proper e-commerce to the simpler second-hand, all the way to the more innovative dropshipping and reselling. Reviewing the complete overview is very useful for identifying the tax obligations relating to each type.
E-commerce
E-commerce must be considered in every respect as a brick-and-mortar store, tied to a single company and aimed at selling various types of goods.
It is a virtual store, organized and structured, which requires opening a VAT number and other tax obligations предусмотрed for electronic commerce.
Marketplace
Unlike e-commerce, a marketplace (such as Amazon and eBay, just to name a few examples) is an online platform that brings together numerous sellers. The latter, if they sell systematically, habitually and not occasionally, are certainly required to open a VAT number.
Dropshipping
Dropshipping is also considered a commercial activity carried out continuously and professionally, making it necessary to open a VAT number.
Its distinctive feature is the sale of retail products in collaboration with one or more external suppliers, who, upon request, arrange to send the purchased good directly to the buyer, allowing the seller not to deal with shipping and storage.
Reselling
Selling a particularly sought-after or out-of-production product at a marked-up price: reselling is exactly this and requires opening a VAT number if the sales activity is carried out by the reseller continuously and in an organized manner.
Second-hand
As regards second-hand trade in used goods, finally, it is always necessary to take the sales method into account to understand whether you are required to comply with specific tax obligations.
No charges are предусмотрed if the sale is occasional and sporadic, whereas a continuous commercial activity, also in this case, presupposes regularization through opening a VAT number.
marioelegio
·3 years agoI agree except:
Reselling: an activity for which a VAT number is always required, since the goods are purchased specifically to be resold. When the intention is only to do this, continuity and organization are not necessary; you need to be compliant before the first transaction.
Second hand: the same as above applies, if the goods are purchased specifically to be resold. What changes is the tax regime (margin scheme). Occasional sales happen only when you sell something that was not purchased for that purpose (sale of personal items).
hi
mario
it2015-inno
OP3 years agothanks