Personal account and 2nd business account
Summary: tidjy.k wants to switch from a private seller to a professional seller on eBay and is wondering how to differentiate, for tax purposes, sales made on a personal account and a business account. lingma85 advises not to mix account types to avoid tax issues and recommends keeping accounting records as proof. rosedebretagne points out that an act of commerce requires a declaration and insists that the tax return must be accurate and separate for each account. tidjy.k wants to know whether sales on a personal account could be considered professional by the tax authorities, but rosedebretagne suggests that it is up to the seller to stay organized and be able to justify things if any potential issue arises.
Hello,
I’m currently a private seller on eBay, mainly reselling second-hand items and a few collectibles from my drawers and shelves.
I’m planning to switch to professional status (sole proprietorship in my own name), and therefore to sell as a pro on eBay. But a question comes to mind. I saw that it was possible to open a 2nd account on eBay. So in theory, I could keep my pro account in addition to my professional account. However, for private individuals, the sales limit is €2,000/year before information is shared with the tax authorities. But how does it work when you sell both as a private individual and as a professional? How do you separate the 2 incomes from a tax point of view? I mean, if I sell €1,000 on the private account and €20,000 on the pro account (that’s just an example, I don’t know what my future turnover will be), will eBay pass on a total of €21,000 in sales to the tax authorities?
I haven’t found any information about this.
rosedebretagne
·2 years agohello ,
as soon as you buy something with the intention of reselling it, it is a commercial act and you must be registered with the authorities . within 30 days of the first act, the law says . it doesn't matter even if you make a loss .
tidjy.k
OP2 years agorosedebretagne
·2 years agoit's up to you to declare it. in case of a problem the concept of " individual " is not known to the administrations, which will not apply some kind of exemption that would exist only in your mind. that's why, as lingma85 advises you, it's best to avoid mixing the two. hence the existence, for example, of bank accounts designated as professional.
tidjy.k
OP2 years agoHere it’s not about using a bank account at the same time as both a pro and a private individual. I know that’s really not recommended. And I’m not asking to benefit from any grace period or allowance. I’m just trying to find out the current tax rules in this specific case.
The question I’m asking myself and restating here is: can I have a personal account and a pro account on eBay? And if so, let’s say I sell €2,000 through my personal account and €15,000 through my pro account? Can I be sure that my €2,000 in sales as a private individual won’t be reclassified as pro status by the tax authorities? Obviously, purchases and sales on my personal eBay account will be done through a personal bank account. Whereas my sales on a pro eBay account will be done through my pro bank account.
rosedebretagne
·2 years agoyou can ask ebay, or take inspiration from lingma85's answer, which suggests that you sell elsewhere.
I remain of the position that it's up to you to declare it. If your affairs are in order, you'll be able to justify yourself easily in the event of reclassification. When that happens, it's not necessarily for the reasons you think; I believe it's more likely to happen because someone else—there are a few who don't hesitate—thinks they've spotted you taking sales away from them, and not on equal footing.
lingma85
·2 years agoHello @tidjy.k
The distinction between a personal account and a business account is shown by the fact that you have 2 different accounts...
- the personal account should only sell goods that belong to you and must not exceed €2000 shipping included... if you want this account not to be targeted by eBay/Bercy, keep it as a buyer account, for example... and don’t mess around mixing things up on the site... sell elsewhere..
- your tax number is your personal tax identity, it’s like your social security number....= ... you only have one and that will be the one you use when you set up as a sole trader (that is to say the same as on your current tax return)
So it’s up to you to stay within the lines you’ve drawn with these 2 accounts on the assumption that all accounting evidence must be kept for 10 years (purchase invoices, sales invoices, bank statements, etc... drawn up on paper or USB drive)
Kind regards
tidjy.k
OP2 years agoI’m not trying to cheat, but it would be stupid to be taxed on a sale that isn’t part of my professional activity. Let’s say I resell my freezer that I no longer need. I’d like to avoid the tax authorities adding that to my turnover.