Everyone who has bought a used passenger car knows that they have to pay tax on civil law transactions, i.e. PCC. However, the demand for tax on purchases such as used telephones, furniture, bicycles, electronics and agricultural machinery is surprising. Today, up to the limit of PLN 1,000, you do not have to pay PCC or even submit a declaration (form PCC-3).
The list of legislative works of the Council of Ministers shows that the Ministry of Finance wants to increase this limit. However, this is not about benefits for taxpayers, although of course the change is a plus for buyers of used items.
Read also: Didn't you file your tax return on time? We explain how to file an active complaint
What is the new limit for PCC exemption?
The assumptions for the draft amendment include, among others: the Act on tax on civil law transactions (no. UD 372) shows that the limit is to be increased from the current 1,000. up to 3 thousand zloty.
The Ministry of Finance wants to raise the limit because collecting tax on such small amounts (tax on the minimum amount exceeding PLN 1,000 is only slightly over PLN 20) is simply unprofitable. The Ministry explains that “the costs of tax proceedings in the event of failure to pay the tax, including shipping costs and personnel costs, approach or exceed the amount of tax due.” The costs of enforcing the tax on low-value contracts also exceed the amount of the tax.
The published assumptions show that the government is to adopt the project in the second quarter of the year. It is not known when the changes would come into force.
Let us add that currently, only people who purchase movable property worth more than PLN 1,000 from people who do not run a business have problems with PCC. If they buy from companies, they pay the amount including VAT, and in such a situation there is no PCC. We explained this in the article: Krzysiek bought a used TV from a friend, and Jacek bought a bicycle on Allegro. Do they have to pay additional tax?
When does a seller of used goods have to pay PIT?
The tax on civil law transactions is charged to buyers, i.e. people who buy tires, bicycles and other movable property. However, the other side, i.e sellers must pay income tax (PIT) on the income from the sale of these items. In accordance with the provisions of the Personal Income Tax Act (Article 10(1)(8)) the sale of items before the expiry of half a year, counting from the end of the month in which the purchase took place, is taxed. So you just need to wait before selling six months (counting from the end of the month in which the acquisition took place) in order not to pay PIT.
The Ministry of Finance does not plan changes in this respect in PIT. Such a proposal cannot be found in the discussed project assumptions.
This means that if the taxpayer sells, for example, a phone after a month, he or she will have to pay income tax. It should also be remembered that if a taxpayer sells too many things in a given year, the tax office may consider it as a business activity. Moreover, currently online platforms must inform the tax office about their users' sales if they exceed certain annual limits (when sales exceed the equivalent of EUR 2,000 or 30 transactions). Read more about it in the article: Do you sell things on OLX? Don't fall into a tax trap – we explain DAC7.
Author: Łukasz Zalewski, journalist of the Law section of Business Insider Polska
