Could you please translate the following text into English?
June 26, 2013 | 25,00 EUR | answered by Dr. Yanqiong Bolik
I purchased an intangible/virtual good (Playstation Network Card in the form of a code) from a private individual abroad for cash. Therefore, there was no receipt for the purchase. Afterwards, I resold these codes on Ebay to earn a little money.
My question: What about income tax, the tax office, business registration, and so on?
What happens if I cannot provide the tax office with receipts of the purchase?
Dear inquirer,
Thank you for your inquiry, which I am happy to answer taking into consideration your effort and the rules of this platform.
Please note that my explanation is based on the situation presented, and that adding, omitting, changing information, or the ambiguity of the information can alter the tax outcome. Please be aware that this does not replace a comprehensive individual consultation.
The tax classification of your situation depends on whether you intend to conduct a sustainable activity by dealing in such goods.
If you sustainably engage in such activity with the intention of making a profit, you are required to report to your competent tax office and trade office. You must properly record business transactions and submit tax returns as a taxpayer.
If you purchased the goods as a private individual (as part of your private assets) and wish to resell them as a private individual without the intention of engaging in this activity sustainably. Then the transaction will fall under private sales transactions if the period between acquisition and sale does not exceed one year. Private sales transactions must be reported in Annex SO of the income tax return. Since you do not intend to operate a business, there is no reporting obligation.
If you do not have an invoice for the purchased goods, you should prove the acquisition process with other documents (e.g. correspondence with the seller, etc.). If you cannot prove the acquisition costs, the tax authorities may not allow these costs to be deducted from the surplus/gain determination.
I hope this information was helpful to you.
If there are still uncertainties, please feel free to use the follow-up function.
Best regards,
Dr. Yanqiong Bolik
Tax advisor
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: steuer@zdbz.de
www.steuerberatung.zdbz.de
