Selling miles and taxes: the rules in Germany
Anyone selling miles regularly will eventually face the tax question. This overview sorts the typical cases — from a one-off sale of leftover miles to recurring sales with profit intent. It does not replace tax advice but gives you the right terms.
The occasional sale
A one-off sale of leftover miles from private flights is generally treated as a private disposal. Such transactions have an annual allowance; once exceeded, the entire gain is taxable. What counts is the gain — proceeds minus documented costs.
When it becomes commercial
Repetition, systematic conduct, appearing on the market and profit intent point to commercial activity. Doing several paid award bookings a month moves in that direction. Business registration, income tax on profits and, depending on turnover, VAT can then apply.
- One-off and private: usually a private disposal with an allowance.
- Regular and systematic: an indicator of commercial activity.
- Small-business rules may apply at low turnover.
- When in doubt, get tax advice — classification depends on the individual case.
What you should document
Record date, program, quantity, proceeds, platform fee and payout date for every sale. On MilesMarket you can export this as an annual summary and hand it straight to your tax return or adviser.
FAQ
- Do I have to declare every mile sale?
- What matters is total gain from private disposals in a calendar year. Below the allowance no tax is due — but you should still document the sales.
- Does MilesMarket provide a summary?
- Yes. In the payouts area you'll find an annual report as PDF with all sales, fees and payouts.