Selling on OLX – do you need to register as a sole proprietor when selling things?

Selling used items on OLX / OLX

After a wave of news about possible fines for sales on OLX, many Ukrainians began to worry: could there be problems due to the sale of an old phone, a baby stroller, or other personal belongings? However, lawyers explain: the appearance of an ad on the marketplace itself does not mean a violation of the law.

When is selling used items on OLX a business?

The tax service officially stated: the sale of personal belongings that were actually in use and not purchased specifically for resale is not a basis for applying financial or administrative liability. This was stated by lawyer Ihor Yasko in a commentary for Channel 24 .

This applies to sales through OLX as well as other classifieds platforms and social networks. It concerns situations where a person:

• sells his own things;
• did not purchase the goods specifically for resale;
• makes sales sporadically;
• has no systematic profit from such activities.

Igor Yasko,

Managing Partner of JSC “Law Company “WINNER”

Single or occasional transactions, when a person simply gets rid of unnecessary things, do not have signs of systematicity and are not aimed at obtaining a stable profit. In this case, there is no obligation to register as an individual entrepreneur or file tax returns solely due to these transactions.

Problems can arise when a user's page begins to resemble a full-fledged online store. According to the lawyer, the risks increase if a person:

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1. Regularly sells the same type of goods;
2. Purchases products specifically for resale;
3. Has a constant assortment;
4. Systematically receives large transfers to the card.

This involves ongoing sales of equipment, clothing, auto parts, gadgets purchased specifically for resale, etc.

When can the tax office punish?

For Ukrainians, the key question is when their online activities are considered entrepreneurial: if a person systematically sells goods for profit, but is not registered as an individual entrepreneur and does not pay taxes, this can be considered economic activity without state registration.

In such cases, administrative fines are applied for violation of the procedure for conducting economic activities, additional taxes, penalties and other financial sanctions may be charged. For registered individual entrepreneurs who do not use RRO/PRRO, although they are obliged to do so, separate significant fines are provided for the sale of goods without fiscalization,
– says the expert.

In the case of large turnovers, the situation may already be on the verge of possible tax evasion.

New approaches to parcel taxation provide that international marketplaces will effectively become VAT tax agents when selling goods to Ukrainian consumers. They will be responsible for charging, withholding, and remitting VAT, as well as submitting relevant reports,
– explained Yasko.

How to sell online without risks?

Igor Yasko advises to clearly distinguish between one-time sales of your own things and systematic trading for profit. What is important to remember:

1. If the sales are one-time and relate to your own used items, this is not entrepreneurship, and registration as an individual entrepreneur is not required.
2. If sales are regular, with the same type of assortment and the purpose of earning money, it is advisable to register an individual entrepreneur and choose the appropriate taxation system (often simplified).
3. It is worth using official payment instruments, keeping records of income, and keeping documents confirming the origin of goods and payments.
4. Do not ignore tax requests: timely explanations and documents often allow you to avoid the harshest sanctions.

“OLX tax” may appear in Ukraine

• The draft law provides for taxation of income from online services, but still requires further revision before final adoption.

• The new law may not come into force until 2027 at the earliest and will apply to those who make more than 30 sales per year or have an income of more than €2,000, with OLX as a “tax agent”.