If you are making money from selling your goods or skills online through platforms like eBay, Airbnb, Uber, Vinted, Fiverr, Upwork, Deliveroo and Etsy, you need to be aware of the new tax rule that will affect you. The new international tax rule is aimed at preventing tax evasion by digital platform sellers.

As from 1 January 2024, across Europe, the United Kingdom, and countries around the world, individuals who earn money from online activity will be under scrutiny due to new tax rules.

As part of a global effort to clamp down on tax evasion, the Organisation for Economic Cooperation and Development (OECD), has implemented new rules that require digital platforms to report the income sellers are receiving through their site routinely.

Websites, apps, and platforms including eBay, Airbnb, Uber, Vinted, Fiverr, Upwork, Deliveroo and Etsy and many others are now obliged to collect and share with tax authorities, details such as tax identity numbers, bank account details, and the number of transactions of their sellers.

The information obtained from the digital platforms will allow tax authorities to compare the self-assessments (or absence thereof) of individuals and launch investigations if discrepancies or tax avoidance is suspected. This information will also be shared between countries that have signed up to the OECD new rules. There are already more than 100 countries that have signed-up to the OECD’s Common Reporting Standard, which has been operating for several years. The new rules aim to target those who are under-reporting, or not reporting their earnings, while also levelling the playing field with how traditional businesses are treated for tax purposes.

Sellers who earn more than £1,000 or 2000 Euros (depending on your country of tax residence) a year through online transactions must register as self-employed and file a tax return at the end of the year.

Time to plan your affairs and optimise your liability?

The first reporting takes place in 2025, but now is the time to plan your affairs. A Gibraltar company can offer you pragmatic solutions and spare you from the bureaucracy and time-consuming administration of being self-employed. Moreover, you might enjoy certain legitimate tax advantages.

The Gibraltar limited company is the perfect start-up vehicle to achieve financial freedom and objectives. It is simple, flexible, and operates from a modern and stable financial jurisdiction.

A few advantages of a Gibraltar Company are:

• No tax on profits: a Gibraltar company conducting profit-making activity outside of Gibraltar will not suffer tax on its profits.
• Only profits accrued in or derived from Gibraltar will attract corporate tax. For those profits (if any) that are deemed taxable in Gibraltar, a low rate of 12.5% will apply.
• Reputationally sound: Gibraltar’s taxation regime has been subject to, and passed, European Union scrutiny as well as organisations such as the OECD and MoneyVale.
• There is no Value Added Tax in Gibraltar, therefore VAT is not an issue from a Gibraltar tax perspective.
• Excellent regulation of company managers: Trust and Company Managers must be authorised and are regulated by a supportive Financial Services Commission.
• Extensive support services are available to assist you with all formalities.
• Above all, it is possible to start and manage your Gibraltar company from the comfort of your own home, and receive the same expertise and assistance each step of the way as if you visited us in person, with no changes in the quality service from our professional team.

Further advantages can be found on our website by following this link.

Now is the Time to Work with The Europa Group

Europa Trust Company Limited is part of the Europa Group. We have been based in Gibraltar for over 39 years and have built a reputation as a stable and reputable business.

We provide a comprehensive range of company and trust formation and management services including company and trust administration, foundations, partnerships, corporate directors, shareholders and secretaries, accounting, marine registration and other associated services.

Our clients are an eclectic mix of international executives, authors, sportsmen, corporations, wealthy individuals, families and many more. Their individual interests and needs are at the centre of our focus. Each client benefits from the experience and multi-jurisdiction knowledge of a dedicated Europa Group professional.

The Europa Group is authorised and regulated by the Gibraltar Financial Services Commission.

If you are thinking of changing your company management Contact us today to find out how we can help you.