Online sales are thriving, year after year increasing its share of the market compared to traditional channels of distribution, unfortunately this expansion often occurred at the expense of entrepreneurs operating online on honest terms as some people did not register their activities and did not issue any invoices. The National Revenue Administration decided to take care of this problem and put an end to these practices by taking online sales through auction services first.
Firstly they want to focus on individuals selling new products, i.e., electronic devices of all kinds, examining the auctions in which the seller informs that they do not issue a VAT invoice. This is a simple operation – it’s enough to make a suitable selection on the auction service and we already have filtered online auctions with such a notice.
Firstly, Allegro, the largest Polish auction service will be checked. Interestingly, when asked about this by its press office if they are doing anything in relation to what has been described above, they replied that every half year they send information to sellers about the need for updating their data. In my opinion, this is far from enough – a large service like Allegro, concerned with its reputation, should demand the relevant documents from sellers confirming that they have started a company and should not allow options for selling without a VAT invoice when it comes to business accounts.
And what about sales through Facebook Marketplace?
This is an open market where 500 million people around the world sell goods. Here, similarly to Allegro, sales take place on quite loose terms, and sellers often shy away from issuing receipts or invoices. Such a way of doing things undoubtedly leads to a large increase in customers on these platforms, but unfortunately, in cases where individuals do not issue proof of sale, such transactions are simply unfair competition against entities that pay taxes. In my opinion, the actions of the National Revenue Administration are highly insufficient – Allegro and Facebook Marketplace should be legally required to verify the entities that intend to sell goods online through their services and demand documents confirming the registration of a company and issuing sales documents to their clients.
And what’s more, Facebook does not check in any way the process of sale or whether the goods were delivered or if the buyer received what he paid for. There is no mechanism controlling this type of distribution. Of course, the buyer can report any irregularities to Facebook, and if it finds that such irregularity has occurred, it may suspend the user’s account and block the possibility of selling. In my opinion, this is far from enough because a seller who has been suspended can simply create a new account and continue selling without problems… So there is just turning a blind eye to people and enabling the development of the grey area…
It’s especially worth praising KAS for their actions as they were previously lacking, which resulted in thousands of honest entrepreneurs losing income from this source.
If this article was helpful to you, we would be grateful if you could share it wherever you like e.g. on FB or Twitter. If you are considering selecting a website developer or online store operator and have any questions related to this or other topics covered on our blog, please use the free consultation form below.