Online Sellers Face Tax Scrutiny as EU Rules Tighten

Treasury Eyes E-commerce and Streamer Donations for Unreported Income

A shift in tax enforcement is creating apprehension among online merchants and digital content creators. New EU directives are empowering tax authorities to meticulously examine transactions across internet platforms, aiming to curb undeclared earnings.

Intensified E-commerce Surveillance

The treasury is now equipped with detailed transaction data from major online marketplaces, including Allegro and Vinted. This influx of information, reportedly covering nearly 300,000 sellers, stems from EU regulations mandating platforms to share user sales data. The goal is to identify individuals and businesses regularly profiting from online sales without fulfilling their tax obligations.

This enhanced oversight means that casual online selling activities might now fall under the purview of tax authorities if they exceed certain thresholds. Previously, many smaller-scale sellers operated with less risk of discovery.

Exemptions and Thresholds Defined

Not all online transactions will trigger tax investigations. The reporting requirements exclude sellers whose activity remains minimal. Specifically, individuals who conduct fewer than thirty transactions within a reporting period, with a total value not exceeding 2,000 euros, are typically exempt. However, any activity surpassing these limits will be flagged for the treasury.

For instance, selling pre-owned clothing on Vinted or second-hand books on Allegro is unlikely to attract attention, provided these sales adhere to the established volume and value limits.

Streamers’ “Tax Gate” Shut by New Regulations

Live streamers are also experiencing significant regulatory changes, particularly concerning viewer donations. Historically, many streamers could classify small, irregular donations as non-taxable gifts. This practice, often referred to as a “tax gate,” allowed significant amounts to go unreported.

However, tax authorities have deemed it impractical to differentiate between numerous small donations and consistent income streams. Consequently, all such payments will now be treated as taxable income.

Taxation Framework for Digital Creators

Payments received by streamers will be categorized either as income from personal activities or as economic activity, contingent upon the scale and regularity of their content creation. This reclassification brings digital creators under standard tax protocols.

The applicable tax rates depend on the income bracket. For earnings up to PLN 120,000 annually, a 12% rate applies, escalating to 32% for income exceeding this amount, following general principles. Alternatively, a flat tax rate of 19% is available, or a lump-sum tax rate of 15% or 8.5%, depending on the specific arrangement. This move significantly impacts emerging creators who previously could establish an online presence with minimal tax formalities.

The increased scrutiny on online earnings reflects a broader global trend. For example, in the United States, the IRS threshold for third-party settlement organizations reporting payments to sellers was lowered to $600 in 2023, significantly broadening the scope of reporting requirements for online transactions (IRS, 2023).