sales Domain sales and (notifications to ) tax authorities in the E.U.

[Paperhand]

Hi, do you know if European tax authorities get automatic notifications of closed sales from various platforms like sedo, dan or namecheap?

I am still at the beginning of my domaining journey and would like to understand this part better. Thanks for your input!

 

[VadimK]

Well, whatever lands in your bank account is visible to your tax authority, regardless whether you sell domain names or pink dildos. For exact taxation you need to talk to an accountant in your country, there are many nuances: buyer from EU/non-EU, buyer is a platform/individual/business etc...

This topic has been discussed here many times, but the result is always the same: you should talk to a qualified accountant in your country.

 

[DotComPicker]

Hi, do you know if European tax authorities get automatic notifications of closed sales from various platforms like sedo, dan or namecheap?

I am still at the beginning of my domaining journey and would like to understand this part better. Thanks for your input!

 

[DotComPicker]

DISCLAIMER: This information is provided for educational purposes only. I am not a tax advisor. Please consult a qualified tax professional for advice specific to your situation.

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If you are an individual (non-professional) and you sell a domain name that you have not used commercially, the amount of the sale must be declared to the tax authorities under the category of Non-Commercial Profits (BNC) non-professional.

Procedure to follow:

Declare the income in your annual tax return, in the non-professional BNC section.

The capital gain to declare corresponds to the difference between the selling price and the acquisition price (and possibly renewal fees).

If the domain name was held for less than 2 years, the capital gain falls under the short-term regime; beyond that, the long-term regime.

As an individual, you are not subject to VAT for occasional asset management.