Get ready, German traders! Starting next spring, if you’re making significant trades on digital platforms, you might catch the attention of tax authorities, thanks to the new European Platform Tax Transparency Act.
This law, based in Brussels, is cracking down on tax evasion and black market trading by imposing strict reporting requirements on digital platforms. While the rules affect all European Union member states, the progress of implementation varies from country to country.
What’s in Scope?
In Germany, individual traders on platforms like Amazon, eBay, Etsy, and Vinted could find themselves in the spotlight if they trade more than thirty products annually or generate over two thousand euros in revenue. With Amazon leading the market, platform trading is a big deal in Germany.
Reporting Requirements
Big platform sellers won’t have the tax authorities knocking on their door directly, but the operators will have to share the necessary data. The deadline for providing information for the tax year 2023 has been extended to March 31, giving platforms some extra time to comply.
Heads up: the reporting deadline has been moved to March 31.
According to T3n, German tax authorities are using spider software to keep a close eye on the platforms. If anything looks fishy, the operators will have to fork over details about individual sellers, including personal information and transaction history.
Let There be Transparency
The German government wants to shed light on the economic activities of platform sellers to make sure everyone is paying their fair share of taxes. So, if you’re making money on these platforms, it’s time to make sure your taxes are in line with the law.
Equality and lawfulness in taxation are the goals.
To prove that your sales are on the up and up, accurate documentation is key. Keep detailed records of all items sold, along with their purchase and sale prices.
