The Expert Answers

Online sales by private individuals: here’s when they’re subject to tax

Current legislation does not set any limits on those who trade online. Often, the limits are set by the Court of Cassation

by Alessandro Borgoglio

22 July 2026

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6' min read

Translated by AI

Versione italiana

Key points

The threshold
The loophole in tax legislation
Transfers under 2,000 euros that fly under the tax authorities’ radar
The eBay sales list is sufficient for the dispute
INPS and VAT only in the case of normal business operations
The tax authorities are on the trail of anyone receiving money via Postepay

6' min read

Translated by AI

Versione italiana

1) I am a keen enthusiast and expert on fine wines, and for the past few years I have been selling them via websites such as eBay and Catawiki, through which I also occasionally purchase bottles to resell. Am I required to declare this to the tax authorities?

A Eurispes report published last year has shone a spotlight on a widespread practice amongst Italians: using the web to run a fully-fledged business, without, however, declaring anything to the tax authorities and, above all, without paying tax. Here’s how it works: you register on platforms as a simple, occasional seller, when in reality you are running a genuine professional resale business.

The threshold

However, once a certain threshold for transactions and/or amounts has been exceeded, one can no longer be considered an occasional seller: one becomes, to all intents and purposes, a professional, required to pay tax on the earnings made and to fulfil all the necessary obligations.

Only those who genuinely sell on an occasional basis, without any business organisation behind them, fall into the ‘occasional’ category. This is the case, for example, with those who put their scooter or second-hand car (not a collector’s item) or another personal item up for sale: a transaction which, by its very nature, is in no way professional nor requires an organised structure and therefore cannot be subject to taxation.

The main difference, for tax purposes, between being classified as a business operator and as an occasional seller is tax liability: anyone who professionally and habitually engages in trade – even if not organised on a business basis – with the ultimate aim of making a profit, generates business income pursuant to Article 55 of the Tuir, which is taxable for personal income tax (IRPEF) purposes, and is also subject to VAT as provided for in Article 4 of Presidential Decree 633/1972; anyone who occasionally sells personal goods, usually of modest value, is not, however, subject to any of the aforementioned taxes; Furthermore, over time, the Supreme Court, with regard to those operating in the sector of works of art and collectables, has also identified a sort of intermediate category, namely that of the occasional speculator, i.e. someone who occasionally purchases goods (for example, works of art) to resell them with a view to making a profit, thereby generating miscellaneous income as referred to in Article 67(1)(i) of the Tuir, but without deducting VAT, due to the lack of the requirement of regularity (Court of Cassation, 1603/2024, 6874/2023 and 30895/2024).

The loophole in tax legislation

The problem is that tax legislation does not precisely define what constitutes a business and what does not, merely requiring, for a business activity to be recognised as such, the sole criterion of habitual professional nature of the economic activity, even if it is not carried out on an exclusive basis (Court of Cassation, 19237/2012, 25777/2014, 8982/2017, 15021/2020, 36502/2022).

Thus, over time, the Court of Cassation has sought to define the scope of the definition: essentially, it follows that the relevant factors for this purpose are the number of transactions carried out and the amount of those transactions, even on an individual basis.

Income derived from a regular online sales business is therefore classified as business income, given the high number of transactions carried out over several tax years (Court of Cassation, 7552/2025, 6874/2023).

However, if the sale of an item generates a significant amount, the frequency requirement is irrelevant and the transaction is still significant for tax purposes (Court of Cassation, 2711/2006 and 8196/2008).

In conclusion, the activity described by the reader appears to have all the characteristics required to be regarded as a business activity, subject to the standard tax regime or, where applicable, the flat-rate scheme, provided the relevant requirements are met.

Transfers under 2,000 euros and off the tax authorities’ radar

2) I made around 15 online sales (via Subito.it) last year, but the amounts are modest and do not exceed 1,500 euros. Could the tax authorities track me down even for such small amounts?

The DAC7 Directive has brought the EU framework for administrative cooperation in tax matters into line with international developments relating to the digital and gig economy and, in particular, with the standards for the reporting and exchange of information set out by the OECD. In summary, the automatic exchange introduced by DAC7 requires platform operators (subject to certain exclusions and exemptions) to report information relating to the carrying out of letting activities of immovable property, the provision of personal services, the sale of goods and the hire of any means of transport for the purpose of receiving payment, in relation to sellers resident in Italia or in another Member State of the European Union, or who provide property letting services in Italia or in another Member State.

Platform operators are required to submit the specified information by 31 January of the year following the calendar year. This does not apply to information relating to sellers for whom the platform operator has facilitated fewer than 30 relevant transactions through the sale of goods and for whom the total amount of consideration paid or credited does not exceed 2,000 euros during the year. The first exchange of information relating to 2023 has taken place and, therefore, it is highly likely that the Italian Revenue Agency will soon begin compiling selective lists generated on the basis of the information received from these platforms.

As has now become customary, it is reasonable to expect the tax authorities to launch a campaign of compliance letters to encourage voluntary compliance amongst the selected taxpayers. In the reader’s case, therefore, it is unlikely that the tax authorities, in the absence of other evidence, would become aware of the sales made and proceed to issue a tax assessment.

The eBay sales list is sufficient for the dispute

3) I have received a tax assessment notice from the Italian Revenue Agency, which alleges that I have been carrying on a business activity subject to personal income tax (IRPEF) and VAT, because I have been selling various items on eBay for several years. The claim is based solely on a report obtained from eBay, but is this sufficient to justify the assessment?

The answer is yes. According to the case law of the Court of Cassation, information obtained via online auction sites and other digital platforms concerning transactions in which the taxpayer has taken part and successful sales made by the taxpayer constitutes data that is, in principle, sufficient to form the basis – even if only on a presumptive basis – the inductive assessment of undeclared income (Court of Cassation, 26987/2019). For the purposes of challenging the conduct of business activities e-commerce the list of transactions carried out via the website is therefore undoubtedly a valid basis for such a challenge (Court of Cassation 26107/2018).

INPS and VAT only in the case of normal business operations

4) If it turns out that I am carrying out business activities through my online sales, do I also have to pay VAT and INPS contributions?

The answer, as far as VAT is concerned, is yes, since in the case of the regular carrying out of business activities VAT liability arises, as provided for in Article 4 of Presidential Decree 633/1972; conversely, those who occasionally sell their personal goods (usually second-hand items of modest value) or those who derive miscellaneous income from online sales as occasional speculators are not subject to VAT. Similarly, for INPS purposes, the obligation to pay contributions arises in the case of the regular pursuit of business activities (the €5,000 exemption applies, in fact, only to occasional self-employment); whilst no contributions are payable in the case of occasional sales, where no business activity is carried out.

The tax authorities are on the trail of anyone who receives money via Postepay

5) I’m a keen cyclist and, for some time now, I’ve been running a side business selling spare parts for racing bikes via adverts on forums and websites, but not through online marketplaces; I receive payments via Postepay. The tax authorities cannot be aware of these transactions, so I have never declared anything: is this correct?

There is, in fact, an investigative procedure, recently utilised by the authorities, through which it is possible to identify online sales transactions relevant for the purposes of establishing a business activity: this involves the data contained in the so-called ‘Archive of Relations with Financial Operators”, as provided for in Article 11 of Decree-Law 201/2011 and subsequent legislative measures, better known to specialists as ADR.

Thanks to the analysis of data submitted annually by financial institutions regarding the balances and transactions in taxpayers’ financial accounts, the Italian Revenue Agency is now able to “uncover” anomalous financial transactions compared with the financial inflows and outflows declared by the taxpayers themselves and/or inferable from various databases; therefore, even sales made through personal contacts or other channels not yet detectable (such as social media adverts) and, consequently, via bank transfer or PayPal or Postepay, still leave a financial trail of the transaction, which can always be “traced” by the tax authorities.

The taxpayer’s conduct is therefore incorrect if the conditions of regularity and professional status are met, such that the activity constitutes a business operation subject to taxation and, of course, to an annual tax return.