The Rise of Digital Platform Transparency: Complying with DAC7 Regulations for Sellers on Wallapop and Vinted

Digital platforms such as Wallapop, Vinted, and Airbnb have until April 8 to provide information about their sellers, as dictated by the Tax Agency’s monthly calendar. The royal decree approved in January by the Council of Ministers requires digital platform operators to report sellers who conduct more than 30 sales per year with a total value exceeding 2,000 euros. This deadline for submission for the year 2024 has been extended to April 8.

Sellers on platforms like Wallapop and Vinted will be affected by these regulations, which also encompass rental transactions, including long-term rentals. The Spanish Tax Administration will share seller information with EU member states or partner jurisdictions outside the EU. While less than 1% of Wallapop users are likely to meet DAC7 requirements, professional sellers or individuals generating profits must comply with tax obligations.

The directive aims to enhance transparency between platforms and tax authorities, but the taxation framework for selling second-hand items remains unchanged. Individuals selling personal items below purchase price do not incur taxes unless they generate capital gains. Professional sellers on platforms like Wallapop must report and fulfill tax obligations for any sales that generate profits. Reports from the Spanish Association of Tax Advisors suggest that the taxation of second-hand sales has not fundamentally changed, emphasizing the need for taxes only on sales exceeding the original purchase price. This requirement is uncommon for individual to individual second-hand transactions.