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Reporting transactions by individuals in the Internet

On 1 July 2024, the act amending the Act on the Exchange of Tax Information with Other Countries and Some Other Acts entered into force. The new regulations impose an obligation on digital platform operators, such as Allegro, Vinted, or OLX, to provide the Head of the National Revenue Administration (KAS) with information about sellers making sales through these platforms. The purpose of the amendment is to identify individuals who offer their products and services on the Internet.

 

What transactions are to be reported?

Digital platform operators are required to report to the tax authorities transactions involving:

  • real estate rental,
  • provision of personal services (e.g. tutoring, cleaning, minor construction work),
  • sale of goods,
  • vehicle rental.

Although the new regulations came into effect on 1 July 2024, the reporting obligation covers sales on digital platforms as early as 1 January 2023. This delay is due to the Polish legislator's failure to implement the relevant EU directive.

 

Taxpayers’ personal data in the hands of the tax authorities

The amendment aims to increase transparency in e-commerce and prevent tax avoidance. Users of digital platforms should be aware that their transactions will be monitored and reported to the KAS (National Revenue Administration), which may result in the need to pay taxes on income earned through these platforms.

The reporting obligation will cover, among other things:

  • seller’s first and last name or business name,
  • address of residence,
  • NIP (TIN) or PESEL number,
  • seller’s date of birth / number in the business register,
  • number of transactions for which remuneration has been paid,
  • total remuneration paid or recognised in each quarter of the reporting period,
  • For real estate rental, information on land registry numbers and the number of days for which the properties were rented in a given reporting period will also be obtained.

 

Transactions exempt from reporting

The reporting obligation will not apply to the data of sellers who made fewer than 30 sales transactions in a given reporting period or whose remuneration from sales on digital platforms in that period did not exceed an equivalent of EUR 2,000.

In addition, the sale of personal items through digital platforms does not constitute a business activity if it takes place after 6 months from the date of purchase and is not carried out as part of a business activity.

 

What do these changes mean for sellers?

We would like to emphasise that the obligation for digital platform operators to provide information is not a new tax. Nevertheless, the data obtained can be used by the tax authorities to verify whether or not a sale on the digital platform constitutes a business activity within the meaning of tax regulations.

Potential implications of such qualification of online sales for sellers may include:

  • the obligation to pay back VAT arrears along with default interest;
  • the obligation to pay PIT and social security contributions (ZUS).

The amendments to the law aim to increase transparency and prevent tax avoidance in e-commerce. While they do not introduce a new tax, sellers should be aware that their transactions may be monitored, and some of them may be classified as business activities, which entails additional tax obligations.

 

Marek Najman, Tax Advisor, Senior Tax Consultant, ATA Tax Sp. z o.o.

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