The internet sales business is a trend that is here to stay. More and more Spaniards are using websites and mobile applications to sell their old furniture or clothes they no longer use and thus get extra money, but there are also those who have turned this modality into a way of life. It is common to find professionals on websites such as Wallapop, Vibbo or Milanuncios who have a large catalog of repaired mobile phones, handmade figures or jewelry or even second-hand cars.
This online business usually works as something casual, but when it begins to be recurring it is normal to wonder where the line is between a personal income and a business.
Below are the situations in which you will have to register (or not) with Social Security and the Treasury. Remember: an online business works exactly the same as a face-to-face one, and for the Administration the owner of a clothing store represents the same thing as the one who sells his children’s clothes on the internet.
High social security
The essential condition that obliges a person to register as a self-employed person (RETA) is that they have a business (online or face-to-face) with recurring income. That is, if you sell products every month, it will be difficult to avoid the regulations.
This is the definition of a self-employed worker according to the Workers’ Statute: “a natural person who regularly, personally, directly, on their own account and outside the scope of management and organization of another person, carries out an economic or professional activity for profit. “.
It is true that this criterion of habituality is ambiguous, and there are sentences that have given the reason to professionals who for not reaching the Minimum Interprofessional Salary: 1,000 euros per month in 2022. Therefore, at their own risk, a recurring seller may not register with Social Security if you do not reach that amount, although you may be fined.
Registration in the Treasury
In order to sell legally, any product marketed by a professional must be registered with the Treasury. In other words, if you are going to sell on the internet to all types of customers on a recurring basis, the law requires you to register with the Treasury. This allows you to issue invoices with each sale, collect VAT and declare income in personal income tax.
Registering with the Treasury is free (registering form 036 or 037). Once done, you will have to declare VAT every three months (model 303) and pay the IRPF (through the installment payment of model 130 and the annual Income statement).
If you are registered as self-employed, it is essential to declare your sales to the Treasury, because if not, you will not be able to issue invoices for your sales. If you do not issue them and your customers do declare the purchase, it is very likely that you will be fined.
And vice versa. If you issue invoices without being registered with Social Security, it would be labor fraud, and at the moment they detect the situation, Social Security will force you to pay the unpaid fees plus a surcharge.
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