Flea Market And Garage Sale: What Are The Rules To Follow?

Do you want to organize a garage sale or a flea market? Do you wish to participate in this type of unpacking sale to supplement your income? Be aware that these events are subject to specific regulations. We will explain the rules to follow when selling goods at garage sales and flea markets.

Who can sell items at a flea market?

You can participate in a garage sale or flea market as a seller:
• If you are an individual and comply with the rules applicable to this type of event.
• If you are a professional trader or manufacturer who is regularly registered.
• If you are an association selling second-hand items donated by individuals.

Note: Since the sellers are not professionals, purchases made at garage sales do not benefit from the legal guarantee of conformity. Before buying a product at a flea market, always check that it works. The seller must give you the opportunity to test it on site.

What are the rules to follow for individuals?

French law considers garage sales, flea markets, and other clearance sales as unpacking sales. This term refers to the sale of goods in premises or on locations not usually intended for public sales.

Individuals wishing to participate in such events must adhere to the following rules:
• Participate in no more than two unpacking sales per year according to Article L310-2 of the Commercial Code.
• Register in the seller identification register and complete a sworn statement indicating they have not participated in more than two sales during the year.
• Sell exclusively used personal items.

Note: This last condition means you cannot sell items you have created yourself at a flea market without first declaring yourself as a professional, for example under the micro-enterprise regime. You also cannot buy new items in stores to resell them at a higher price at a flea market.

Of course, regulated products such as medications, tobacco, weapons, animals, and foodstuffs are prohibited from being sold at such events.

Are the proceeds from this sale subject to tax?

If you only sell personal items that you no longer wish to use, in accordance with flea market and garage sale regulations, the income you derive from this sale is not taxable.

You do not have to declare it to the tax authorities, except in the following specific cases:
• If you sell precious metals or valuable items, such as jewelry or works of art, collectibles, or antiques.
• If you sell goods for more than €5,000, except for furniture, household appliances, and automobiles which are exempt.

In these two cases, you must fill out a specific form and pay:
• the flat-rate tax on precious items.
• or the capital gains tax on the sale of movable property at a rate of 19%.

What are the rules for organizing a garage sale?

If you wish to organize a garage sale or a flea market, you must comply with the regulations applicable to this type of event. You can schedule this unpacking sale in a community hall, on public roads, or in a parking lot, provided that you make a prior declaration at the town hall via a form.

Only occasional sales organized by associations in their own premises are not subject to declaration, if access to these sales is exclusively reserved for their members.

There is no frequency limit for organizing these events. However, the cumulative duration of this type of sale in the same place cannot exceed two months per year. If you exceed this duration, you risk a fine of €1500.

As the event organizer, you must also keep a register allowing the identification of sellers. This register must necessarily comply with the model provided by the administration and must contain the following information:
• the name, first name, position, and address of each seller.
• the nature, number, and date of issuance of their identity document.
• for individuals, mention of the submission of a sworn statement of non-participation in two other similar events during the calendar year.

The sworn statements must also be attached to the register. Moreover, this register must be numbered and initialed by the police commissioner or the mayor of the municipality where the event takes place.

This register must be made available to the police, tax services, and customs during the event. After the garage sale or flea market and no later than within 8 days, it must be submitted to the prefecture or sub-prefecture on which the event location depends.