The secondhand market is experiencing a significant boom, with countless transactions for items like phones, bicycles, and electronics happening daily. However, many consumers are unaware that buying or selling certain used goods might come with tax obligations. Historically, transactions exceeding approximately $250 USD (originally 1000 PLN) triggered the need to file a PCC-3 declaration and pay tax. Good news for taxpayers: this is set to change soon, and for the better.
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Upcoming Tax Relief: Cheaper Used Smartphone Purchases
Understanding Purchase Tax on Used Goods
When you purchase a phone or other item from a private individual, the primary tax obligation for the buyer is the Civil Law Transactions Tax (PCC), which amounts to 2% of the item’s market value. For many years, the threshold for exemption from this tax was approximately $250 USD. Given today’s prices for flagship smartphone models, this often meant almost every purchase of a newer used smartphone required filing a tax declaration.
When Does PCC Tax Apply?
It’s crucial to understand that this tax obligation arises only when:
- The seller is a private individual, not a company.
- The transaction is not subject to Value Added Tax (VAT).
If the market value of the phone exceeds the legal threshold, the buyer typically has 14 days to submit a PCC-3 declaration and transfer the owed amount to the tax office. Failing to meet this obligation can result in significant penalties for a fiscal offense, which are determined based on the current minimum wage.
Important: If you purchase a phone or other electronics from an official store or a business that issues a VAT invoice, you are entirely exempt from any tax formalities with the tax office.
New Limits for PCC Tax on Smartphone Purchases
Significant changes are planned for 2026, which will bring considerable relief to consumers and reduce bureaucracy associated with purchases on popular online marketplaces. The proposed changes aim to raise the tax exemption limit to approximately $750 USD (originally 3000 PLN). For the average user who upgrades their phone once a year, this is genuinely excellent news.
According to the draft law amending local taxes and fees acts, as well as the Civil Law Transactions Tax Act:
The PCC rate for the sale of movable goods is 2%. This means that when the tax base only slightly exceeds approximately $250 USD, the costs of tax settlement for the taxpayer (e.g., postal and transfer fees), as well as the costs of tax proceedings in case of non-payment (e.g., postal and personnel costs), approach or exceed the amount of tax due. The necessity to enforce tax on low-value transactions generates enforcement costs for tax authorities that often exceed the tax amount, making it fiscally inefficient.
In essence, from the state budget’s perspective, collecting such small taxes on minor transactions is simply not cost-effective. While the tax won’t disappear entirely, new, more realistic limits have been proposed. The proposal is to increase the exemption limit for the sale of movable goods from approximately $250 USD to $750 USD. This will positively impact the exemption of minor non-professional transactions from tax.
The proposed increase reflects an adjustment to this “small” value, considering the cumulative price growth (which has risen by nearly 111% since 2001) and the increased purchasing power of citizens (reflected in a 297% rise in average monthly wages in the national economy).
Income Tax (PIT) on Selling a Smartphone
From the seller’s perspective, the key considerations are how long they have owned the device and any potential profit made from the transaction. If you sell a personal phone after six months from its purchase date (counting from the end of the month in which it was acquired), the income generated is completely exempt from income tax (PIT). This rule protects individuals who occasionally upgrade their equipment, provided they are not doing so for commercial purposes.
The situation becomes more complex if the sale occurs before the six-month period has elapsed AND the selling price is higher than the purchase price. In such a scenario, the seller is obligated to declare the income in their annual tax return and pay tax according to the progressive tax scale. However, it’s important to note that with standard use and rapid depreciation of electronics, private individuals rarely realize a genuine profit from such sales.
Frequently Asked Questions (FAQ)
What is PCC tax?
PCC (Civil Law Transactions Tax) is a 2% tax on the market value of certain items, like used goods, when purchased from a private individual and not subject to VAT.
When do I pay PCC tax when buying a used item?
You pay PCC tax if you buy a used item from a private seller, the transaction is not subject to VAT, and the item’s market value exceeds the current exemption limit (approximately $250 USD, increasing to $750 USD in 2026).
What are the upcoming changes to the PCC tax limit?
Planned for 2026, the tax exemption limit for PCC on movable goods will increase from approximately $250 USD to $750 USD, making more used item purchases tax-free for consumers.
Do I pay income tax when selling a used phone?
If you sell a personal phone after owning it for more than six months (from the end of the purchase month), the income is tax-exempt. If sold before six months at a profit, you must declare it in your annual tax return. However, realizing a profit on used electronics for private sellers is rare due to depreciation.
Source: Sejm, Infor, Gofin, bankier. Opening photo: Gemini
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