The Supreme Administrative Court decided that conduct of sale by natural persons via Internet auctions may be treated as economic activity (case file no.: II FSK 1016/09). In order to classify a given activity as economic activity tax authorities investigate among others the circumstances of the transaction, bank accounts and information from the owners of the portal. Whether the activity is classified as economic activity is decided primarily on the basis of the number of transactions being performed as well as the organized manner of their performance. Among the prerequisites indicating conduct of economic activity is also continued performance and pursuance of profits. Sale of used goods which are personal property is not subject to taxation. In case tax authorities decide that the activity of a tax-payer should be taxed and there are no tax records kept, the tax authorities make an estimation of the income. It is the taxpayer who has to prove the nature of the transaction made via Internet auctions.

Contact person: Małgorzata Lewandowska, mlw@pnplaw.pl