Selling Online? What Platform Reporting to Revenue Means for Irish Small Businesses

At John P Burke & Co. Accountants we believe that online platforms have opened up enormous opportunities for Irish small businesses. Selling handmade goods through online marketplaces, offering services through freelance platforms or letting property through short-term rental sites can be a great way to reach customers and grow income. But many sellers do not realise that these platforms now report details of their sales directly to Revenue. Understanding what is being shared, and making sure your tax affairs match, has never been more important.

What Is Platform Reporting?

Since 2023, rules introduced across the EU have required digital platform operators to collect information about the people and businesses selling through them and report it to tax authorities each year. In Ireland, platforms report this information to Revenue, which can also exchange it with tax authorities in other EU countries.

The aim is to give tax authorities a clearer view of income earned through online platforms, which has grown rapidly in recent years. For sellers, it means that income earned online is now far more visible than it once was.

Which Platforms and Activities Are Covered?

The rules apply to a wide range of platforms, including online marketplaces for selling goods, sites for booking short-term accommodation, platforms connecting freelancers and tradespeople with customers, and services for renting vehicles and other means of transport.

Occasional sellers of goods who make only a small number of low-value sales in a year may fall outside the reporting requirements. However, anyone selling regularly, providing services or letting property through a platform is likely to be reported.

What Information Is Shared?

Platforms typically report the seller's name, address, date of birth, tax reference number and, where relevant, VAT number. They also report the total amount earned, the number of transactions, fees and commissions charged by the platform and bank account details. For property lets, the address of the property is usually included.

Revenue uses this information alongside other data to identify income that may not have been declared. Sellers whose platform income does not match their tax returns may receive a letter from Revenue asking them to review their position.

Hobby or Business?

One of the most common questions is whether online sales count as a business. Selling a few personal belongings you no longer need is generally not treated as trading, and in most cases no tax arises. However, buying goods to resell, making products to sell on a regular basis, offering services for payment or letting property are likely to be treated as taxable activities.

Factors such as how often you sell, whether you buy items specifically to resell and whether you are trying to make a profit all help determine whether you are trading. If your activity has grown from a hobby into something more regular, it may be time to review your tax position.

Your Tax Obligations

If you are trading, your profits are subject to income tax, USC and PRSI, and you may need to register for tax as a self-employed person and file an annual return. You can generally deduct legitimate business expenses, such as platform fees, materials, postage and packaging, from your income.

VAT is another important consideration. Once your turnover exceeds the relevant registration threshold, you will need to register for VAT. If you sell goods to consumers in other EU countries, separate rules apply once your cross-border sales exceed an EU-wide threshold, and you may need to charge VAT at the rate applying in your customer's country, often through the One Stop Shop system.

Short-term letting income is also taxable, and the relief available for renting a room in your home does not generally extend to short-term guest lettings.

Make Sure Your Figures Match

Even sellers who are already registered and declaring their income should check that their records align with what platforms report. Platforms often report gross income before their fees and commissions are deducted, while sellers may record only the net amount received into their bank account. If you declare only the net figure, there may appear to be a gap. Declaring the full income and claiming fees as an expense keeps the figures consistent.

If you sell through more than one platform, keep a clear record of income from each, along with refunds, returns and fees, so your accounts can be reconciled easily.

If Income Has Not Been Declared

If you have earned income through online platforms in previous years and have not declared it, it is far better to address the situation before Revenue contacts you. Making a voluntary disclosure can significantly reduce penalties and help you put things right with minimal disruption. Taking advice before contacting Revenue will help ensure the disclosure is complete and handled correctly.

Getting Your Online Income in Order

Online selling can be a rewarding way to build a business, but the days of platform income going unnoticed are over. By understanding your obligations, keeping accurate records and making sure your tax returns reflect what platforms report, you can grow your online business with confidence.

At John P Burke & Co. Accountants, we help online sellers, freelancers and short-term letting hosts understand their tax obligations, keep proper records and stay compliant with Revenue.

If you would like to discuss your business, contact us on 016217410 or email info@johnpburke.ie or visit johnpburke.ie.

Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.