Second-hand and bartering to dodge Spain's 21% VAT

Gifting, selling or repairing: the way to dodge the 21% VAT

A plug you replace yourself. A washing machine that gets repaired instead of replaced. A second-hand processor sold for 15 euros. Behind each of those decisions lies the same logic: every euro that never crosses a till escapes a 21% VAT which, on second-hand purchases between private individuals, simply isn't paid. The argument that opens this discussion sums it up bluntly: the circular economy also works as a dam against what its author calls "this confiscatory yoke that is Spain".

The idea rests on three pillars. The first, buying and selling between private individuals: whoever buys a second-hand item from another individual — except a car — pays no VAT, and the seller recovers some money while getting rid of a bulky item taking up space. The second, household self-sufficiency: repair before calling someone in, because the professional always bills that extra 21%. The third, bartering, acknowledged as the trickiest — "it has to happen that what we offer interests the other person" — but useful when two people reach an agreement.

The clothing container as a business, not as charity

The initial enthusiasm soon runs into market reality. Several participants warn that used-clothing containers are not a charitable channel: companies pay local councils to place them next to the rubbish bins, as happens with used cooking oil, and much of the textile ends up in the resale business. The criticism gets sharper: only "the low-quality crap" reaches certain destinations.

Distrust of intermediary organisations runs through much of the conversation. Some demand that donations reach families in need, not companies that resell and claim charitable work. And suspicion arises over the use of donations: one contributor points out that donations are taxable, which demolishes the expectation of getting a tax deduction for handing over old junk.

The 15-euro scam that poisons everything

The weakest point of the second-hand market isn't the price: it's trust. One specific case illustrates it starkly. A private seller sells a processor for 15 euros; two weeks later the buyer claims it doesn't switch on and was sent broken. The platform rules in the buyer's favour. Result: no money, no processor, and half an hour lost between packing and walking to the post office. The conclusion drawn is blunt: in-person deals or nothing.

The diagnosis repeats itself: the apps are full of hagglers offering half price for four-euro items, of items more expensive than in a brick-and-mortar resale shop, and of pieces that are falling apart. Some would rather deal with the tax office than with certain types of buyer. And others, after selling a lot online, have set a threshold: below 8 or 10 euros it isn't worth it, because between packing, protecting and travelling to a drop-off point the margin evaporates.

Repairing, repurposing and the 10-euro threshold

Self-sufficiency has convinced advocates, but also nuances. Changing a plug or fixing a washing machine requires knowing how; when there's no alternative, it's time to call a professional. In motoring the consensus is similar: a second-hand car and DIY maintenance for what's manageable, a garage being mandatory for clutches or suspension.

The economic calculation rules. One example cited: second-hand equipment in immaculate condition bought at a 30% discount off new, with the added advantage that, if resold later, hardly anything is lost. Against that, the opportunity cost of selling badly: petrol, time and the risk of scams can exceed the sale price.

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One jarring fact remains. The same conversation that defends giving away rather than throwing away admits, without embarrassment, that some clothes go straight into the bin — or are even destroyed first — to avoid having to meet anyone. The circular economy works when the saving justifies the effort. When it doesn't, the rubbish bin keeps winning by a landslide.