The Short Version
Clearing out your game shelf? You are probably fine.
Most sellers on Second Turn Games will never be reported to tax authorities. The EU reporting rules (called DAC7) only kick in for high-volume sellers - and even then, being reported does not mean you owe extra taxes.
In the past 12 months, have you completed 30+ sales on our platform? Or earned €2,000+ total (after any platform fees)? If BOTH answers are "no", you will not be reported. Most casual sellers are well below these thresholds.
What is DAC7?
DAC7 is an EU directive (officially: Council Directive 2021/514) that requires online marketplaces to share seller information with tax authorities. It applies to all EU platforms - eBay, Vinted, Etsy, Airbnb - not just us.
The goal is tax transparency: helping tax authorities see income earned through online platforms. It has been in effect since January 2023.
Important: DAC7 is about information sharing, not new taxes. Being reported does not automatically mean you owe anything.
The Thresholds Explained
We only report your information if you exceed at least one of these thresholds in a calendar year:
| Threshold | Amount | What it means |
|---|---|---|
| Sales count | 30 or more | You have completed 30+ sales |
| Total proceeds | €2,000 or more | Your total sales add up to €2,000+ (after any platform fees) |
What counts as a "sale"?
- Completed Claim the game transactions
- Cancelled or refunded orders do not count
- Each order is one sale (regardless of how many games are in it)
What counts toward "proceeds"?
- The funds you receive from sales (after any platform fees)
- Shipping fees paid by buyers do not count toward your proceeds
We Will Warn You Before You Cross
You will never be surprised. Here is how our warning system works:
| Your progress | What we do |
|---|---|
| 0-79% of either threshold | Nothing - sell freely |
| ~80% (24 sales or €1,600) | We notify you and request your TIN |
| 100% (30 sales or €2,000) | We report to VID |
What if I do not provide my TIN?
If you exceed a threshold without providing your TIN:
- Your selling privileges will be paused
- Pending payouts will be frozen
- We will still report what we have (without TIN)
Just provide it when asked - it takes 30 seconds.
What Happens If I Am Reported?
If you exceed either threshold, we report the following to Latvia's State Revenue Service (VID) by January 31 of the following year: your full legal name, address, date of birth, Tax ID (TIN), IBAN, and quarterly sales totals. VID then shares this with tax authorities in your country of residence (if different from Latvia) through EU automatic exchange systems.
What happens next?
Honestly? For most people, nothing. Tax authorities receive this data alongside information from many other platforms. They may do nothing, cross-reference with your tax returns, or ask questions if something does not match. If you have been declaring your income correctly, you have nothing to worry about.
"But Do I Owe Taxes on My Sales?"
We cannot give tax advice - but here is general context:
Selling personal items
If you are selling board games from your personal collection (things you bought to play, not to resell), this is generally not taxable income in most EU countries. You are just recovering some of what you originally paid.
When it might be different
Tax obligations may apply if you are buying games specifically to resell them for profit, selling at a scale that looks like a business, or already registered as a business. If you are already compliant, DAC7 is just paperwork for us, not a problem for you.