I've been trying to find information to this with all sorts of search queries to no avail. It this actually a thing I can't find because my google-fu is not strong enough?
[1] https://news.ycombinator.com/item?id=29144043
If you give your friend money for some help he provided you would need to pay taxes (otherwise people could always pretend to be friends and exchange money behind their back while not paying any tax because it wasn't a business exchange)
There is a low amount of such work that is free (pretty low, around 300$ per year).
In practice people often ignore it. If you give away your gaming console to your friend helping to renovate the house, you might theoretically need to pay taxes. But I think you only get into real trouble if you conduct real business or there simply isn't any enforcement possible anyway.
There are similar rules for gifting since it would equally enable you to evade paying tax by declaring mutual gifts instead of service and payment.
edit: I think the legal term is "Gefälligkeit", it would you net sources in German of course. The law is also defines claims for both parties. What if your friend painted your house blue, but you wanted it red? Who is responsible for the damage, etc. pp.
Not sure why the previous thread commenter used the word "illegal".
It's legal to barter and help non-family members. It's simply about declaring income for tax purposes. The USA has similar laws about declaring "fair market value" of bartering. (Although people often ignore the law.)
So if the word "illegal" must be used: It's illegal to not declare fair-market-value of bartering as income to be taxed.
Tax authorities target bartering because they don't want it to be used as a loophole to evade taxes. But, if you help your neighbor move a sofa, nobody is going to report the neighbor as a tax evader for not counting your help as "income".
As others have said there are probably rules around taxes that kick in at some point which for the most part are ignored between friends. But I'd assume that's true almost everywhere.
One of the culture shock things about moving to Iceland was the amount of services that would offer to work under the counter in cash for a discount so they could avoid tax.
I think people in general make too much of the laws. Laws are just a formalization of the actual culture in place, and neither replace nor create culture in themselves. The courts are made up of people too, as are the police, etc etc. The problem starts when you remove the "people" aspect of a judicial system, and it becomes paragraph-riding[1] tyranny.
Or when people themselves are bad, when the courts are bad it doesn't matter if you had the best judicial system in the world. It would still be bad.
[1]: https://en.wiktionary.org/wiki/paragrafryttare, a word to describe someone who relies on texts and only texts, often to the point of ridiculousness and because they have something to gain out of only relying on the text. Often in terms of the judicial system.
For example if someone cleans your house every week. Even if that person does it for charity, for fun or whatever it could be seen as a service with value. In theory you should pay taxes over such a thing.
It becomes even more of a gray area if for example someone cleans your house every week and you give them a bag of groceries in return.
Overall is a thousand shades gray thing but the gist of it is that in all countries you can't just give a gift without paying taxes. Otherwise it would be easy to dodge taxes. I could just "give" someone a car.
But thats just a very theoretical look at taxes. In practice this is never enforced.
Explaining the Varieties of Volunteering in Europe: A Capability Approach (2021) https://link.springer.com/article/10.1007/s11266-021-00347-5
I'm pretty sure the first is totally fine in any country. Also pretty sure the second would be considered a tax-dodge in any country as it's just income you don't declare. In Ireland those doing jobs for cash like that is called a "nixer".
No, it's not illegal (I would have added 'obviously' but this very question shows that it may not be so obvious...)
But, as is the case everywhere, a transfer of money/property/work may give rise to various tax liabilities.