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Old 27.01.2020, 17:23
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Unexpected second income & associated tax liabilities

Hello -

Last year I started selling things on a popular auction website, initially to get rid of old household items, before transitioning into selling digital items in a particular niche. This grew into something fairly profitable while remaining something I was able to do outside of my full-time job and took just a few hours here and there every week.

I hold a full-time job, hold a B-Permit but am not taxed at source as I am married to a Swiss citizen. Technically I am meant to tell my employer about any ancillary "work" that I am doing. While I would suggest what I am doing is more of a hobby, the hobby has produced more income than I originally anticipated.

My questions are twofold:

1. How do I responsibly report this income now, such that I include it within my tax return for 2019 and pay the appropriate taxes. Do I simply need to tick the box that reports "second income"? Having read some similar threads it seems I can pay a lump sum AHV payment against the income derived in the last tax year. The second income exceeds the 2,500 CHF amount I have read elsewhere that would require an AHV payment and also exceeds the 21,500 CHF amount I read that might require a Pillar 2 payment... That said I am registered as full-time employed...

2. How do I treat this "second income" if I don't want to call it "work". Many people sell things on places like Ricardo or eBay but wouldn't consider this as operating a second job and presumably do not tell their employer. The second income does not create any conflict with my full-time job as they are totally unrelated so frankly I don't see why my employer needs to know what I do in my spare time.


Thanks in advance for any advice or help!
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Old 28.01.2020, 12:45
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Re: Unexpected second income & associated tax liabilities

This sort of question has been answered many time before - search for freelancing / self employed...
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Old 28.01.2020, 12:50
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Re: Unexpected second income & associated tax liabilities

Arrrrgggg one of the many Ricardo sellers who buys stuff on wish/alibaba then sells it in CH for a 1000% markup.

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Old 28.01.2020, 13:15
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Re: Unexpected second income & associated tax liabilities

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This sort of question has been answered many time before - search for freelancing / self employed...
I am neither "freelancing" or "self employed". I am in full-time employment where a simple hobby has grown, unexpectedly, beyond where I had anticipated and I am looking to make sure I don't fall foul of any tax laws.
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Old 28.01.2020, 13:37
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Re: Unexpected second income & associated tax liabilities

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I am neither "freelancing" or "self employed". I am in full-time employment where a simple hobby has grown, unexpectedly, beyond where I had anticipated and I am looking to make sure I don't fall foul of any tax laws.

Actually you are both employed and self-employed. Given the volume of income, you would need to register this sideline with the SVA and pay contributions accordingly. I would think, if these sales are completely unrelated to your main employment, your employer would be pretty churlish to object providing your activities don't impact on your full-time work, especially if you explain it to your employer as you did here. In terms of taxation, it's simply an extra source of income to be declared on your family tax return IMV.
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