Vinted: Spain's secondhand market dodging VAT

Vinted: The digital marketplace avoiding VAT in Spain

Buying secondhand clothes has moved beyond a niche hobby to become a strategic move against rising prices. Vinted, the Lithuanian platform for used clothing, is where a tagless Scotch&Soda sweater sells for €8, and where two pairs of pants listed unsuccessfully for four years attracted buyers within a day and sold in under a month. This phenomenon splits opinion: some see it as a brutal hack of the system, while others suspect it’s part of a globalist agenda.

Participants argue that private sales bypass VAT entirely. An €8 sweater lacks this tax because the seller isn’t running a business but simply clearing out unused items. Unlike traditional retail, the difference isn't subtle—it’s fiscal. This marks the first major point of contention.

Do you pay VAT when buying secondhand from individuals?

No, and this is central to the debate. When someone sells an item they previously used, they aren’t conducting economic activity, so no tax is applied. Savings compared to new purchases include both retail margins and uncollected taxes. Some view this as a harmless legal gap; others see structural evasion: every euro not processed through official channels is revenue lost by the state.

Additionally, Vinted’s fiscal headquarters are in Lithuania, not Spain, meaning associated revenues don’t boost Spanish coffers. Exact figures on lost income aren’t publicly broken down, but the principle stands: buyer savings and tax gaps are two sides of the same coin.

Why Vinted works where Wallapop stalls

Platform comparison forms the second front. Items sitting unsold for four years on one app drew interest on another within a day and sold in less than a month. The difference lies in the buyer demographic: many come from France, negotiate politely, and avoid aggressive haggling. Cross-border markets and postal shipping change dynamics, noticeably affecting sellers. "Traditional bartering, digitized," sums up one cynical description circulating online.

Shipping costs pose challenges. If proceeds barely cover postage, transactions lose value; some refuse to ship items worth less than a coffee. Hand delivery often isn’t available during listing, pushing users toward postal logistics and customers accustomed to it.

The business behind used clothes

This isn’t spontaneous fashion or recent invention. Chicfy, a Spanish resale platform operating since 2013, was acquired by Vinted a couple of years ago. Sector consolidation stems not just from individuals clearing closets, but from an industry recognizing textile waste as a scalable, monetizable market.

Behind operations lie data and traffic businesses: app installations, mobile notifications, constant ad checking. Described addiction—buying one or two sale items per site—isn’t a side effect; it’s the model.

From shared wardrobes to conspiracy narratives

Like rapidly growing phenomena, this trend spawns legends. Some frame it within a supposed globalist agenda encouraging reduced consumption and sharing, using eco-labels as cover. Though unsupported by evidence, the narrative persists: secondhand consumption masks poverty sold as virtue.

An uncomfortable aspect deserves generic mention. Reports exist of buyers purchasing used intimate apparel for non-fashion purposes, and sellers receiving off-list propositions. These shadows exist but don’t define the core market.

Durability vs. hygiene arguments

Against buying frenzies, another camp advocates wearing clothes until disintegration, stretching each item over a decade without selling. For them, secondhand isn’t savings but a grimy trade in worn rags. A third group admits effort outweighs gains when profits hover around five or ten euros.

Hygiene remains contentious. What some see as merely washed clothes, others perceive carrying symbolic weight unaffected by laundering. Extreme comparisons liken secondhand garments to hotel sheets or restaurant cutlery, shifting focus from clothing to psychological aversions.

Given these factors, secondhand markets likely continue eroding traditional retail shares. No signs suggest slowdown. However, the thin line between smart savings and shadow economy warrants attention: once fiscal holes get quantified, celebrations might end.