Once and for all - what applies when dealing in scrap as a private individual? Let's break the myths!
Many people believe that you as a private person can sell scrap without affecting the tax, but that is not true. Since scrap is considered to have its own economic value -- regardless of who sells it -- the profits are in principle always taxed. This also applies if you found the scrap yourself, received it for free or retrieved it from something to be thrown away.
As a private individual, do I have to pay tax when selling scrap?
Yes, in most cases you have to as a private citizen tax on the profits when selling scrap. That's because scrap not counted as a personal asset according to the law.
Many people have heard of the “$50,000 limit” for tax-free sales — but it only applies to things you have used yourself, such as furniture, clothes or your old bicycle. Scrap metal does not normally fall into that category, which means that you must account for the profit Even if you only sell once.
But what if it is my personal asset?
Good question! It depends How often you sell, what kind of scrap it is, and How it was used.
Three possible scenarios
- Single sale, no profit: This is usually counted as capital income. You pay 30% tax on the profit (i.e. the sale price minus expenses for, for example, transport).
Recurring sales on a smaller scale
- Then it can be classed as Hobbies, and the profit is taxed as income from service Ordinary payroll tax.
Regular sales for profit
Then it becomes business activities, which requires:
- F-tax bill
- VAT registration
- Permission from police department
Private person + profit = account
In short: if you sell scrap and make a profit — should it be accounted for. Is it only sometimes? Then maybe that counts as capital income. Do you sell often? Then it can be a hobby or business activity.
Taxes vary, but It is rarely tax-free!
Hint: Always contact the Swedish Tax Agency if you are unsure. It's better to ask than to get a arrears on your neck.
When the scrap actually comes from the home - what about?
Many are now surely wondering: “But if the scrap I'm selling actually comes from my own home — do I still have to tax it?” And that's a relevant question, because here there's actually an important exception in the law!
If the scrap metal you sell is something like you or your family have used it themselves in the household, for example, old pipes from a bathroom renovation, a rusty grill, bicycle frames, a broken element or an old wood stove — well, then it can be counted as a so-called personal access under the Income Tax Act.
When it comes to up to SEK 50,000 in profit from scrap trading?
When the scrap is considered a personal asset, the tax exemption rule applies which states that you can make up to SEK 50,000 in profit per year without paying taxes. This is not a limit for all types of scrap sales — it only applies to those that have actually been a part of your or your family's home and had one utility.
But you need to be careful. Because what you sell never been used in the home, or if it's scrap you retrieved, collected or purchased for resale, so the exception does not apply.
⚠️ Important to consider
If you sell both your own old scrap and collected materials, you must be able to show what is what. Otherwise, the Swedish Tax Agency risks considering the entire sale as taxable.
So: if the scrap comes from your home, has been used there and you sell it for the first time -- then might It is tax-free up to 50 000 SEK. But if it resembles a for-profit side project? Then it's another fiver.
