Sale of used books on digital platforms and VAT entrepreneur status

The emergence of new reporting obligations for digital platforms has raised doubts regarding the fiscal nature of private sellers. Recently, the Dirección General de Tributos (DGT) has addressed the question of whether the sale of goods, such as used books, through digital interfaces entails the obligation to tax as an entrepreneur for Value Added Tax (IVA) purposes.

What the DGT has ruled

The inquiry focused on determining whether a natural person who sells used books, exceeding the thresholds of Directive (EU) 2021/514 (known as the DAC7 Directive), acquires the status of an entrepreneur or professional for VAT. The DGT has ruled that the obligation for digital interfaces to report information under said directive does not alter the tax classification of the seller.

The criteria establish that the frequency or regularity of sales is not the sole determining factor. For entrepreneur status to exist, there must be an organization of production means with the intention of intervening in the market. If the operation is punctual, isolated, and lacks an intention of continuity, entrepreneur status is not acquired.

What this means for you

If you are an individual who sells items occasionally, such as used books, through digital platforms, the fact that your income is reported under the DAC7 Directive does not mean you must start taxing as a professional for VAT. Liability for the tax depends strictly on whether there is a real intention to carry out a business or professional activity, and not simply on exceeding a platform's reporting threshold.

What you should do

It is fundamental to distinguish between the reporting obligation of digital platforms and the nature of your economic activity. Should your sales cease to be occasional and begin to present a business structure with own means and a will for continuity, your tax situation could change. It is recommended to assess each case individually to determine if the activity carried out fits the concept of a business activity according to Law 37/1992.