I buy and resell used watches: do I have to pay the HBJOAT tax?

Short answer

No. Sales of second-hand watches and jewelry are not subject to the HBJOAT tax.

Why are second-hand goods not taxable?

Article L. 471-27 of the Code of Taxation on Goods and Services expressly excludes second-hand goods from the taxable event applicable to retail sales.

The Directorate General of Customs also confirms that, since January 1, 2009, the HBJOAT tax is no longer levied on second-hand products.

The professional resale of a second-hand watch or piece of jewelry should therefore not be included in the turnover subject to the HBJOAT tax.

Concrete example

You buy a second-hand watch for €500 and resell it for €800.

No HBJOAT tax is due on this sale, neither on the total selling price nor on the margin made.

However, this transaction may be subject to other tax rules, such as the VAT margin scheme, depending on your situation.

Main or secondary activity

The exclusion applies whether the sale of second-hand goods constitutes your main business or a secondary business.

However, sales of new products falling within the scope of the HBJOAT tax remain subject to this tax.

Official sources

• Article L. 471-27 of the Code of Taxes on Goods and Services
• Directorate General of Customs: tax for the development of the watchmaking, jewelry, and goldsmithing industries