VAT and income tax on peer delivery earnings: what travelers need to know

Earning money through peer delivery is income. In most countries, income is taxable. Ignoring this is not a strategy; it is a liability that compounds over time.

Income tax basics. In the UK, trading income above the GBP 1,000 trading allowance must be declared. In the EU, rules vary by member state but most require self-employment income above certain thresholds to be reported. In the US, income above USD 400 is subject to self-employment tax.

Is peer delivery employment or self-employment? In most jurisdictions, peer delivery travelers are treated as self-employed individuals, not employees of the platform. This means you are responsible for paying your own income tax and social contributions.

What expenses can you offset. The costs of earning the income may be deductible: platform fees charged by Sendways, a portion of your travel costs attributable to the delivery activity, and packing materials. A local accountant or tax advisor is the best source of guidance.

VAT. In most countries, individual peer delivery travelers do not need to register for VAT unless their earnings exceed the VAT registration threshold (GBP 90,000 in the UK as of 2025, EUR 25,000-85,000 depending on EU member state).

Records to keep. Sendways provides an annual earnings summary. Keep this, along with records of any delivery-related expenses.

Sendways' role. Sendways does not withhold tax on traveler earnings (for self-employed users). The responsibility for correct tax reporting rests with the traveler.