Selling on eBay can be an excellent way for self-employed individuals, freelancers, and even employees in Germany to earn additional income or create a main source of revenue. However, it’s essential to understand how German tax laws and legal requirements affect you as an eBay seller.
In this guide, we’ll explain:
When private selling becomes a business
What the new Plattformen-Steuertransparenzgesetz (PStTG) means
How to handle taxes and reporting obligations (including EÜR)
Why packaging regulations (LUCID) matter
Which bookkeeping rules apply?
Private vs. business selling on eBay
When does private selling become a business?
Occasional decluttering: If you occasionally sell a few used items from your attic, you’re probably a private seller.
Regular reselling with profit intent: If you buy goods specifically to resell them regularly at a profit, the tax office (Finanzamt) may classify your activity as commercial.
Thresholds to watch: Selling more than 30 items per year or exceeding total annual revenue of 2,000 EUR on eBay can trigger additional reporting requirements under the new rules.
✍️ Note: If the Finanzamt sees a continuous pattern of buying and reselling, your sales might be considered a business (Gewerbe). That means you must register a trade, file taxes accordingly, and potentially charge VAT (Umsatzsteuer).
Why this matters
Self-employed registration & tax obligations: Once you cross into “business” territory, you need to register self-employment with the Finanzamt (file Fragebogen zur steuerlichen Erfassung), register at the local Gewerbeamt, become a Gewerbetreibender (tradesperson), and start declaring all annual taxes.
Kleinunternehmer status: If you expect an annual revenue below 25,000 EUR in the first year and under 100,000 EUR in the following year, you can opt for Kleinunternehmer (small business) status. This means you generally do not charge VAT on invoices, but you also cannot reclaim VAT on business expenses.
Proper bookkeeping: As a self-employed individual or freelancer, you need well-organized records of income and expenses. ☑️ Tools like Norman can help you simplify daily bookkeeping and prepare your tax returns accurately.
New regulations in 2023: Plattformen-Steuertransparenzgesetz (PSTTG)
Since early 2023, the German government introduced the Plattformen-Steuertransparenzgesetz (PStTG) to increase transparency and combat tax evasion. Under this law, eBay is obligated to report specific seller data to the Federal Tax Office if certain thresholds are met (e.g., more than 30 sales or over 2,000 EUR in revenue per year).
Key takeaways:
Quarterly reporting: eBay must typically report seller activity (including your name, address, tax number, sales, etc.) to German authorities.
Cooperation is essential: If eBay requests personal or tax details, it is crucial to provide them; otherwise, your account could be restricted.
No automatic tax bill: The tax office reviews the reported data before deciding if you owe taxes. However, it’s best to keep your records clear and transparent to avoid issues later.
Tax requirements for eBay sellers
Income tax on profits
Private sales under 1,000 EUR profit per year: If you sell items occasionally and your total annual profit stays under 1,000 EUR, these sales are often tax-free.
Above 1,000 EUR profit: The entire amount of profit (not just the part above 1,000 EUR) generally becomes taxable.
Einnahmen-Überschuss-Rechnung (EÜR)
What is EÜR? If you’re self-employed (e.g., a freelancer) and don’t exceed certain thresholds requiring double-entry bookkeeping (€800,000 in revenue per year and earn less than €80,000 in annual profit), you can use the simplified cash-basis accounting method known as Einnahmen-Überschuss-Rechnung (EÜR).
Why use EÜR? It’s less complicated than full double-entry bookkeeping and involves listing your business income and expenses to calculate taxable profit. Norman’s accounting tool can help you automate much of this process.
VAT (Umsatzsteuer)
Kleinunternehmer: If your total annual revenue is under 25,000 EUR (and forecasted under 100,000 EUR for the following year), you may choose Kleinunternehmer status. You do not charge VAT on your eBay sales but cannot deduct input VAT on expenses. You must still file your annual VAT tax report even if you are a Kleinunternehmer.
Regular entrepreneurs: If you exceed these thresholds, you must register for VAT, issue VAT invoices, and pay the appropriate rates (e.g., 19% or 7% on certain goods).
Trade tax (Gewerbesteuer)
Who pays trade tax? Only those registered as Gewerbetreibende (business owners). Freelancers in the strict sense (e.g., certain creative professionals) are often exempt, but “commercial” eBay activity typically triggers a need for business registration.
Exemptions: The annual exemption is 24,500 EUR in profits. Above that, trade tax applies.
Key tax thresholds
Below is a quick overview of important thresholds for eBay sellers:
| Threshold | Value | What happens |
|---|---|---|
| Private sales tax-free limit | 1,000 EUR profit/year | Profits above 1,000 EUR become fully taxable |
| Kleinunternehmer revenue limit | Total revenue: €25,000 in the first year and €100,000 in the second year | If exceeded, must charge and file VAT |
| PStTG reporting limit for eBay | 30 items or 2,000 EUR/year | eBay reports data to the German tax office if above these thresholds |
| Trade tax exemption | 24,500 EUR profit/year | Exceeding this triggers Gewerbesteuer requirements |
Packaging law (Lucid) for eBay sellers in Germany
If you ship physical goods to buyers in Germany, you must comply with the German Packaging Act (VerpackG). It requires you to:
Register in the LUCID system with the Central Agency Packaging Register (Zentrale Stelle Verpackungsregister).
License your packaging with a dual system.
Provide your LUCID number in your seller profile.
🙈 Why this matters: eBay and other marketplaces are legally obliged to ensure their sellers follow the packaging law. If you do not comply, your seller account may be restricted for German sales.
Getting started with eBay
Create a seller account: Provide your contact details, bank information, and confirm your identity.
List your products accurately: Offer clear descriptions, pictures, shipping terms, and a realistic handling time.
Comply with regulations:
Register as a business if required.
Follow the VerpackG (packaging law).
Keep an eye on thresholds for PStTG reporting.
Manage taxes and bookkeeping:
Track all transactions to ensure accurate tax declarations.
Consider a simple and secure accounting solution like Norman to automate your bookkeeping.
Tips for success on eBay
Optimize your listings
Use clear, keyword-rich titles and concise descriptions.
Include high-quality images from multiple angles.
Provide accurate product details and specify any defects to build buyer trust.
Offer competitive shipping & return policies
Provide multiple shipping options.
Consider free shipping if it makes sense for your margins.
Offer straightforward return policies to encourage more sales.
Maintain prompt communication
Reply to buyer inquiries quickly and politely.
Keep them updated on shipping times and possible delays.
Good communication often leads to positive reviews.
Stay on top of trends & seasons
Research trending products or categories on eBay.
Adjust your inventory seasonally to meet demand (e.g., holiday items, summer goods).
Leverage eBay’s promotions & advertising
Use eBay’s “Promoted Listings” for increased visibility.
Run seasonal sales or coupon campaigns to attract buyers.
Monitor your seller ratings
Aim for excellent ratings by shipping on time and providing top-notch customer service.
High ratings improve your visibility and can lower fees on some eBay programs.
Keep good records
Track all your expenses (packaging, shipping, eBay fees) alongside income.
Use an accounting tool to automate your financial management.
FAQ
1. Do I need to register as a business to sell on eBay in Germany?
You only need a business registration if you sell items regularly and with a profit intention. Occasional private sales usually don’t require it. However, once you pass certain thresholds (e.g., 1,000 EUR profit for private sales or show consistent reseller activity), you’re seen as a business for tax purposes.
2. How does VAT (Umsatzsteuer) work for eBay sales?
If you qualify as a Kleinunternehmer (below 25,000 EUR in the first year), you do not charge VAT.
Once you exceed that amount (or opt out of Kleinunternehmer status), you must charge and file VAT.
3. What is the Plattformen-Steuertransparenzgesetz (PStTG)?
It’s a law requiring platforms like eBay to report sellers’ data to the German tax authorities if sales exceed 30 items or 2,000 EUR annually. This is to fight tax evasion and increase transparency.
4. What is EÜR and do I need it for eBay?
EÜR (Einnahmen-Überschuss-Rechnung) is a simplified form of bookkeeping that many freelancers and small businesses in Germany use instead of double-entry accounting. If your eBay sales qualify you as self-employed (and you meet certain thresholds), EÜR can help simplify your tax reporting.
5. Do I need to comply with packaging regulations (LUCID)?
Yes. If you ship goods to German buyers, you must register in the LUCID system and license your packaging. Otherwise, eBay might restrict your selling privileges.
Takeaways
Selling on eBay in Germany can be both profitable and straightforward—provided you understand your tax obligations and follow key regulations like the PStTG and the German packaging law. Whether you’re a freelancer or self-employed, keeping your books in order and filing taxes on time is crucial.
Stay compliant, stay organized, and watch your eBay sales flourish in the German market.
✅ Ready to streamline your eBay bookkeeping and tax filing?
Try Norman now and ensure you stay compliant with German tax laws while you grow your eBay sales.