According to studies carried out by the Organization of Consumers and Users (OCU), the second-hand clothing trade especially attracts young people, in the age group below 35 years. However, this trend also has followers among parents, bargain hunters, or in general, users who are conscious about waste.
Platforms like Vinted, Wallapop, or Milanuncios offer the possibility to sell second-hand items in a simple way. However, sellers must comply with some rules of good use, as well as some commercial or tax obligations.
In order for the transaction to be successful, the OCU recommends offering a clear description and “being honest”; this will prevent buyers from feeling disappointed and wanting to make returns. Likewise, it advises adopting the following habits:
- Do not cut the washing and size labels, as they will be helpful to the new owner.
- Take good photographs, with good light and a plain background. It is advisable to take a picture of the complete garment, another one of the labels, and another one of any specific detail. Some buyers appreciate seeing the garment worn.
- Label the garment well in the ad on the website or application, especially regarding its condition (brand new, practically new, used, worn, with some breakage or stain, etc.)
- Respond to questions that interested parties may ask.
- Be flexible with prices.
- Use ‘eco-friendly’ packaging. “Reuse shoe boxes and paper bags, covering the logos of the original brands. Then, wrap everything with the paper bag, seal it with packing tape, print the labels and stick them on the envelope,” advises OCU.
Taxes and warranty
Beyond the forms, the organization also offers some keys to not incur in any administrative or tax offenses. In this sense, the organization distinguishes between two types of sales: sales between individuals and sales between companies or professionals. “When the sale of clothing occurs between individuals, the guarantees and rights of claim that protect the buyer are regulated by the Civil Code, while if there is a company or a professional involved and an individual, they are covered by consumer legislation,” it explains.
When the seller is a professional, the customer has 14 days for withdrawal, one year of warranty and has to add VAT, income tax, or corporate tax. On the other hand, if the seller is an individual, they do not need to include withdrawal and must include income tax if there is a capital gain. Regarding the warranty, it should be 6 months if there is a hidden defect. “If the response from the seller is not favorable, the only option would be to file a claim with the courts,” the organization indicates.
Finally, the OCU clarifies whether individual sellers must declare these profits. Generally, they do not need to do so, unless they meet one of these three conditions:
- that more than 30 operations are carried out in a year;
- that the value of the profits exceeds 2,000 euros;
- that there is a capital gain.
“In case sales become habitual and income exceeds the Minimum Interprofessional Salary, the seller must register as self-employed, declare the corresponding VAT, and comply with the obligations of self-employed workers,” the organization states.
