Pokémon Cards in France Taxed at 36.2% 0 10

French tax authorities reminded Pokémon card collectors that profits from their resale must be declared and may be subject to tax.

The authorities noted that the small cardboard cards, which were originally traded by children in schoolyards, have now become investment objects and are sold at auctions. They are attracting an increasing number of investors, often young, seeking quick profits.

The French Ministry of Economy and Finance decided to inform taxpayers about the tax regime that applies to collectible cards. This includes cards such as Pokémon, as well as Panini, Magic: The Gathering, and Yu-Gi-Oh!

Most of these cards fall into the category of consumer goods. In this category, taxpayers are fully exempt from tax if the sale amount of the cards is less than 5,000 euros per transaction.

However, if the transaction amount exceeds 5,000 euros, it is subject to capital gains tax on the sale of movable property: the tax rate is 36.2%. This includes 19% income tax plus 17.2% social security contributions.

However, there is a special case for certain cards that can be classified as collectibles (this category also includes stamps, wine labels, and postcards). Article 98 A of the French General Tax Code states that an object is considered "collectible" if it has "historical or ethnographic interest."

A Pokémon card may be considered as such. For example, if it is a first edition or an exclusive card related to a specific event. The decision on whether a particular card falls under this category is at the discretion of the judge.

If a card is classified as collectible, its sale for a price exceeding 5,000 euros will be subject to a more specific tax. The seller will have to pay a fixed tax of 6% of the sale price, plus 0.5% CRDS (contribution for the repayment of social debt).