These playing cards are taxed at 36.2% on the capital gain for any transaction above 5,000 euros.
Simple cards for children that have become valuable objects in their own right. Although Pokémon card collectors have always existed since their creation in the 90s, the market has exploded in recent years. Some now see it as a new method of investment. The most expensive copy in the world, a “Pikachu illustrator”, was sold for 4,477,146 euros.
According to a survey carried out by EBay, nearly 8% of French people collect playing cards (Pokémon, Yu-Gi-Ho, etc.). However, these game cards are not considered collector’s items under the Tax Code, despite an update from Bofip last March. How then can we explain such a difference when their use is similar to that of postcards or stamps?
“The administration is only applying the European text, which clearly defines a list of collectible items, of which gaming cards are not part,” points out Thomas Le Boucher, associate lawyer at Cyplom law firm to Les Echos.
Clearly, Pokémon cards are considered consumer goods, “unless it is a historic card, one of the first produced for example,” indicates Cyplom. While a total tax of 6.5% (excluding rare metals) is applied to the sale price of collectibles above 5,000 euros, the general rule applies in tax matters in the case of these cards game.
Here too, no tax declaration is required for transactions below 5,000 euros. When the sale exceeds this amount, the seller is subject to a flat-rate income tax of 19% in addition to social security contributions of 17.2%, thus totaling an overall tax burden of 36.2%. This tax is calculated only on the capital gain realized. At first glance, this general rule is to the disadvantage of the collector/seller for any transaction exceeding 6,000 euros.
“This doctrine will penalize collectors. The objective is perhaps also to curb speculation,” observes Thomas Le Boucher. According to the price comparator Idealo, demand increased 8-fold between June 2020 and May 2021. Prices increased by 24% over the same period.
However, this method of taxation has other advantages. It is subject to a progressive reduction system: from the 6th year of ownership, an annual reduction of 6% is provided, offering complete exemption after 22 years. However, it is important to emphasize that this regime requires justification of the acquisition date and price.
