Don't Panic
A letter from your tax authority is not an accusation. In most cases after DAC7 data sharing began in 2024, authorities sent information letters or compliance nudges — essentially saying "we noticed income on Platform X; please confirm whether you declared it."
These are different from a formal audit or a demand for payment.
Step 1: Read the Letter Carefully
Identify what type of contact it is:
- Information request (most common): they want you to confirm or explain your marketplace income
- Verification letter: they are cross-checking your tax return against platform data
- Formal inquiry: they have a specific query and a deadline for your response
Note the deadline — always respond within the given timeframe.
Step 2: Gather Your Records
Collect:
- Transaction history from the platform (usually downloadable from your seller account)
- Original purchase receipts for items you sold (to prove your cost basis)
- Any previous tax returns where this income was declared (or not)
Step 3: Determine Your Position
Was your activity personal sales (used personal items, no systematic profit intent) or business activity?
- If personal: prepare a brief explanation and supporting evidence (e.g., photos showing these were your own used clothes)
- If business: consult a tax advisor immediately — you may need to file or amend returns
Step 4: Respond Clearly and On Time
Write a factual, calm response. State:
- Your total income on the platform
- That the items were personal property (if applicable)
- How you calculated any taxable income (if applicable)
Attach supporting documents.
Step 5: Consult a Professional
If the amounts involved are large (over €5,000), or if you are unsure about your position, pay for a one-hour consultation with a local tax advisor. The cost of advice is almost always less than the cost of getting it wrong.
Key Takeaway
The worst response is no response. A proactive, factual reply shows the tax authority you are acting in good faith, which usually leads to a better outcome.