Selling Items Online in Germany: When Taxes and a Business License Apply

Selling used clothing, furniture, electronics, or children’s items on eBay, Kleinanzeigen, Etsy, and other platforms does not, in and of itself, trigger a new tax. However, in Germany, such sales have become more noticeable to the Finanzamt: under certain conditions, platforms are required to report seller data in accordance with the PStTG/DAC7 regulations. Therefore, the key question is not whether you’ve received a letter from the platform, but whether your activity appears to be a private sale or regular commercial trade.

If you sell your own used items for less than you paid for them, this is usually considered a private matter. The risk arises when goods are purchased for resale, items are custom-made, sales are ongoing, or profit is generated from assets that are not considered ordinary items of daily use.

What Do PStTG and DAC7 Mean?

The Platform Tax Transparency Act (Plattformen-Steuertransparenzgesetz, or PStTG) is linked to the European DAC7 regulations. The law does not regulate a tax on each sale, but rather the reporting requirements for digital platforms. It may apply to platforms through which users sell goods, rent out property, offer services, or provide transportation.

For a private seller, three points are important:

• PStTG does not impose a separate tax on the sale of used items.
• The platform may request tax information and forward the details to the Bundeszentralamt für Steuern.
• Submitting this information does not mean that tax will be automatically assessed: The tax office (Finanzamt) evaluates the nature of the sales and whether taxable profit is present.

There is a practical reporting threshold for selling goods on the platform: if a seller has fewer than 30 transactions on a single platform during a calendar year and, at the same time, earns no more than 2,000 euros in revenue, that seller is generally not considered subject to reporting under this category. This is not a tax exemption nor permission to trade without paying taxes. It is merely a criterion that the platform uses to determine whether to report the information.

The report may include your name, address, date of birth, tax ID, bank details, payment amounts, commissions, and transaction data. A payment service on its own—such as PayPal—does not typically qualify as such a platform simply because it processes payments: the PStTG distinguishes separately between payment services, classified ad boards, and full-fledged transaction platforms.

When a Sale Is Considered a Private Transaction

The Finanzamt does not have a single, universal threshold amount beyond which a private individual automatically becomes a business owner. The tax authority looks at the overall pattern of behavior.

A private sale usually looks like this:

• Are you selling personal items from your home, basement, garage, or after moving?
• the items were purchased for personal use, not for resale;
• The selling price is lower than or roughly comparable to the typical price of a used item;
• The product range is not restocked regularly;
• no inventory, no recurring new products, no advertising, and no ongoing customer interactions;
• Sales end once the unwanted items have been sold.

Examples: a child’s bicycle, an old stroller, books, furniture, clothing, household appliances, dishes, or items left over from an inheritance or a move. Even if there are many such listings over a short period, a sale of an apartment alone does not necessarily constitute a business.

What Signs Indicate Business Activity?

A business license (Gewerbe) may be required when online sales take on a sustained commercial nature. Typical indicators include:

• goods are purchased in advance specifically for resale;
• identical or new items appear regularly;
• There is a consistent product lineup, packaging, branding, and advertising;
• the seller accepts repeat orders or makes items specifically for sale;
• the activity continues for months and is aimed at generating income;
• Sales are conducted through multiple channels as a single project.

Handmade items on Etsy or other marketplaces often fall into a gray area. Selling a few of your own items or a one-time surplus of materials is one thing. Maintaining a catalog, purchasing materials, taking orders, and calculating profit margins—that’s already a business.

When it comes to trading goods, this generally falls under “Gewerbe.” “Freiberufler” applies only to a limited range of liberal professions and creative services; this is discussed in more detail in the article on “” for liberal professions in Germany:.

Can Tax Be Owed on a Private Sale?

In most cases of personal sales, no tax is due: personal items for everyday use are generally simply removed from one’s assets. However, there is a separate set of rules governing private transactions under §23 EStG.

This can be important if you’re selling not a typical household item, but an asset with the potential for speculative profit: a collectible, an investment item, rare equipment, jewelry, or another item purchased with the expectation of price appreciation. In such cases, three questions are crucial:

• Was there a profit, i.e., a difference between the selling price and the costs of purchase/sale?
• Has one year passed between the purchase and sale of movable property?
• Whether the item is an everyday household item that is explicitly excluded from this rule.

In 2026, under §23 EStG, profits from private transactions remain tax-exempt if the total annual profit is less than 1,000 euros. This is the tax-exemption threshold: once the threshold is reached, the entire profit is subject to tax, not just the amount exceeding the threshold. For the typical sale of a closet, children’s items, or used furniture, it is usually more important to prove the domestic nature of the sale than to consider this limit.

When You Need to Register a Business (Gewerbe)

If your activity already resembles a business, you shouldn’t disguise it as a private sale. For small online sellers, registering as a sole proprietor (Gewerbe) is the most common option; the basic steps are described in the article on for sole proprietors in Germany:.

Once you’re registered, the tax rules change. You need to calculate not just the platform’s turnover, but your profit: revenue minus purchases, shipping, commissions, packaging, tools, and other related expenses. This profit is reported on the tax return at and and affects your overall tax rate, which is explained in more detail in the article about income tax.

For online sales, three taxes are typically relevant:

Tax	When It Applies	What to Look For
Income Tax	Business profits are included in total income	The tax depends on the individual’s or family’s overall circumstances
Umsatzsteuer	As a general rule, business owners are subject to VAT	If your turnover is low, the Kleinunternehmerregelung may apply
Trade Tax	Applicable to businesses with sufficient profit	Sole proprietorships have an annual tax-free allowance of 24,500 euros

The Small Business Exemption under §19 UStG applies in 2026 if your total revenue for the previous calendar year did not exceed 25,000 euros and does not exceed 100,000 euros in the current year. Under this regime, VAT is not itemized on invoices, nor is input VAT eligible for deduction. This rule applies specifically to value-added tax (Umsatzsteuer), not to business registration or income tax.

The term “Kleingewerbe” is often misunderstood. For the Finanzamt, two separate questions are more important: Do you have a “Gewerbe” (business activity), and do you apply the “Kleinunternehmerregelung” (small business regulation) for VAT purposes?

How to Keep Records When Sales Straddle the Line Between Personal and Business

Even for a private sale, it’s a good idea to keep records. The more sales you make and the more expensive the items are, the more important it is to keep accurate records.

Minimum accounting requirements:

• date of purchase and date of sale;
• exactly what was sold and on which platform;
• purchase price, selling price, shipping, and platform fees;
• receipts, old order confirmation emails, statements, and screenshots of listings;
• An explanation of why an item was personal, if this is not obvious.

If sales become regular, it’s best to separate personal and business transactions. A separate account—or at least a sub-account—makes it easier to explain your finances to the Finanzamt. Basic guidelines on bank accounts can be found in the article “” about opening a Girokonto in Germany:.

Specific Risks: Benefits, Employment, and Sensitive Goods

If you receive Bürgergeld or other benefits, income from sales and self-employment may affect your benefit calculations. The tax office and the Jobcenter have different rules, so you shouldn’t automatically assume that small-scale trading is safe. In cases of doubt, it’s best to discuss your income in advance with the agency that administers your benefits.

If sales take place alongside your main job, tax considerations still apply. Income from this side business may be added to your overall taxable income, and your employment contract may require you to notify your employer of your Nebentätigkeit.

Be sure to check products where the issue goes beyond just taxes: brand replicas, cosmetics, food, e-cigarettes, children’s products, electronics, and items subject to safety requirements. These may be subject to regulations regarding labeling, composition, age restrictions, warranties, liability, and trademarks.

Quick Check of Scenarios

Scenario	Business	Tax Risk
You occasionally sell your used items for less than you paid for them	Usually not	Usually low
Do you sell a lot of personal items after moving?	Usually not, if they are truly personal belongings	An investigation may be conducted if the platform has shared the data
You sell an item at a profit within a year, and it is not an everyday-use item	Usually not, if it’s a one-time transaction	§23 EStG may apply
Do you purchase goods for resale?	Yes	Is the profit considered business income?
Do you make custom items and sell them regularly?	Usually yes	Income tax, possibly sales tax and business tax
Receiving Bürgergeld and selling regularly	Depends on the nature of the activity	You must consider the impact on your benefits

Frequently Asked Questions

Is it possible to test the market first and then register a business?

If you’re selling a few personal items, you don’t need to register a business. However, if you purchase goods, curate an inventory, take orders, and expect to generate income, your activity may already be considered a business. Retroactive registration and explaining your situation to the Finanzamt is usually more complicated than verifying your status early on.

The platform requested a Steuer-ID. Does that mean taxes will already be assessed?

No. Data requests are most often related to the platform’s obligations under the PStTG. Tax assessment depends on the nature of the sales, the profit, the length of ownership, and whether the activity resembles a business.

Is a single box of items considered a single transaction?

For platform reporting purposes, a completed transaction with a buyer is typically what matters. If one buyer purchases one lot, that counts as a single transaction, even if it contains multiple items. However, for tax assessment purposes, it’s not just the mechanics of the calculation that matter, but the overall nature of the sales.

If the money is deposited into a spouse’s account, who is the seller?

The account itself does not determine the outcome. The authorities look at who purchases the goods, posts the listings, communicates with buyers, ships the packages, and bears the risk. However, mixing other people’s accounts with your sales revenue weakens your case.

Is it okay to sell brand replicas if you honestly state that they are copies?

This wording does not make the sale risk-free. The risk relates to trademarks, the origin of the goods, and the rights of the rights holder—not just to how the listing is described.