Selling on Vinted can be an amazing way to make extra money from your closet, but taxes might seem scary if you’re new to reselling.
Don’t worry – it’s easier than you think to stay on the right side of the tax rules when selling your pre-loved items.
In this article we’ll cover what you need to know about vinted taxes.
Understanding Vinted Taxes
Selling on Vinted doesn’t have to be complicated when it comes to taxes. The platform makes it easy by handling sales tax/VAT for you – that’s right, you won’t need to worry about collecting or paying sales tax on your sales.
If you’re just selling a few items from your closet, you probably won’t need to pay income tax. Casual sellers who make less than £1,000 from online sales typically don’t have tax obligations.
Vinted keeps track of your earnings and may share this data with tax authorities.
If you’re making regular sales or running a business through the platform, you’ll need to report your income.
Here’s what makes you a business seller:
- Buying items to resell
- Making regular sales each month
- Modifying items before reselling
- Using Vinted as a source of income
Pro tip: Keep good records of your sales and expenses. Take screenshots of your earnings and save receipts for items you buy to resell.
You can use platforms like SellerAider to track your sales across multiple marketplaces. This makes tax reporting much simpler at the end of the year.
The rules change if you’re selling on multiple platforms. Your combined earnings from all online sales count toward your taxable income, not just what you make on Vinted.
How To Calculate Your Vinted Taxes
Let’s figure out what taxes you need to pay on your Vinted sales! It’s simpler than you might think.
Here’s a simple cheatsheet
There is no tax to pay if you are:
- Selling personal items for less than paid
- Making a profit less than £3000 as a personal seller
There MIGHT BE tax to pay if you are:
- Trading as a business and making profit
- Tax paid on all profit
- A personal seller making > £3k in profit
- Tax paid on anything over £3k allowance
No here’s how to calculate your taxes…
The first step is tracking your total sales. Add up all your Vinted transactions for the year, including fees and shipping costs you charged buyers.
Keep records of your costs too! This includes:
- Items you bought to resell
- Shipping materials
- Platform fees
- Storage supplies
If you’re in the UK, you don’t need to pay taxes if you earn less than £1,000 from all your selling activities. This is called the trading allowance.
For US sellers, you’ll need to pay taxes if you make more than $400 in profit. Profit is your total sales minus your expenses.
Pro tip: Use a spreadsheet or SellerAider’s crosslisting app to track your sales and expenses automatically. This makes tax time way easier!
Your tax rate depends on your total income and location. Most hobby sellers will pay regular income tax rates on their profit.
Remember to save about 25-30% of your profit for taxes. It’s better to save too much than too little!
If you sell across multiple platforms like Depop or Poshmark too, combine all your sales when calculating your tax obligations.
Vinted Taxes UK
If you’re selling on Vinted in the UK, you can earn up to £1,000 tax-free each year. This is called the trading allowance, and it applies to all your online selling activities.
HMRC has started paying closer attention to online sellers. They’re sending letters to people who make more than 30 sales per year, so it’s smart to keep track of your numbers.
When you go over the £1,000 limit, you’ll need to:
- Register for self-assessment
- Keep records of your sales and expenses
- File a tax return each year
- Pay any tax you owe
Pro tip: Save receipts for your shipping supplies and packaging materials – these count as business expenses and can lower your tax bill.
Tracking your sales is crucial. Using a spreadsheet or specialized reseller software can make tax time much easier. These tools help you record your income and expenses throughout the year.
Got multiple selling accounts? Make sure you’re counting all your income together. The £1,000 allowance covers everything you sell, not just your Vinted sales.
If you’re making regular sales, treat it like a business.
Set aside money for taxes as you go – around 20-30% of your profits is a good starting point.
Common Mistakes To Avoid
Keeping track of your sales income is crucial. Don’t wait until tax season to start organizing your records – use a spreadsheet or tracking app to log everything as you go.
Missing receipts for your inventory purchases is a big no-no. Take photos of all receipts and store them safely. This helps prove your costs and maximizes your tax deductions.
Pro tip: If you’re selling regularly on Vinted, you might qualify as a trader rather than a casual seller. Check if you show badges of trade like regular sales patterns or buying stock to resell.
Not separating personal and business finances trips up many sellers. Set up a dedicated bank account for your Vinted income and expenses to make tax time easier.
Some sellers forget to register as a sole trader when they should. If you’re making regular sales with the intention to profit, you need to tell the tax office.
Many Vinted sellers don’t realize they can claim business expenses. Keep track of:
- Packaging materials
- Shipping costs
- Storage solutions
- Phone bills (business portion)
- Travel to source inventory
Upgrading to Vinted Pro or forming a limited company too early can complicate your taxes unnecessarily. Start simple as a sole trader until your business grows enough to need these options.
Consider using crosslisting software to track your sales across different platforms. This makes income tracking much simpler at tax time.
Frequently Asked Questions
Tax requirements for Vinted sellers depend on your sales volume, location, and whether you’re selling as a hobby or business. Your tax obligations start once you earn over certain thresholds.
How do I calculate taxes for sales made on Vinted?
Keep track of all your sales through Vinted’s seller dashboard. Add up your total earnings for the tax year. Don’t forget to subtract your selling fees and shipping costs.
A spreadsheet or tracking app can make this easier. Try using SellerAider’s crosslisting app to automatically track your sales across platforms.