Manager of company - retired. Accounting, VAT
Manager of company - retired. Accounting, VAT.
Question:
Hello ! I have registered a company in Bulgaria EOOD - with a manager and sole proprietor of the retired capital.
Ltd. has as its subject of activity:
* Design, creation, maintenance and sale of software products;
* Building and maintenance of computer networks;
* Maintenance, diagnostics and repair of computer and office equipment;
* IT consultancy;
* Information technology;
* Other activities in the field of information technology;
* Advertising activity;
* Accounting services, auditing services, company registrations;
* Management, internal and external business and financial services;
* All activities and services not prohibited by law;
Services (activity) will be carried out by persons outside the country and the EU.
The services will be for individuals and for taxable persons (DZL) from Bulgaria, the EU and third countries (Asia and America) - we target all possible customers.
Payment will be only by bank transfer to a foreign currency account in Bulgaria and PayPal.
We would like to hear from you about the following questions:
1. Are we subject to mandatory VAT registration and by which VAT caps?
2. Single or double-entry bookkeeping.
3. In the NRA - can the pensioner be able to provide only health insurance (will not carry out personal work)
4. People who carry out services are thinking of having a civil contract. And only 10% of TFL, after deduction of the normal rate, costs to deduct and import. (They work in a third country, a contract with another company).
Greetings.
Answer:
Hello,
We are glad that you took the first step and made a company registration. We will be happy to help you by answering your questions and going specifically to them. The main subject of your future business will be the provision of services. (the sale of software is treated as a sale of services under Article 9, paragraph 2, point 1 of the VAT Act). you are obliged to file VAT registration of your company, pursuant to Art. 97a, paragraph 2 of the Act. In this case, your company will not charge VAT for the services performed, but will submit VIES declarations to EU counterparties to which it has provided services, and they are required to self-assess VAT in their countries according to their tax laws. Registration under this Article does not entitle the crew to use a tax credit for paid VAT for purchased goods and services.
If you do not provide services in the EU (and only in Bulgaria and in third countries), your company is not subject to VAT registration until it has made a turnover of BGN 50000 for a period of 12 consecutive months (if you make this turnover for 5 months, In this case VAT registration will be done on a general basis, for all supplies in Bulgaria the company will be liable for VAT, for the EU will not charge VAT again but will only submit VIES declarations to contractors but will be entitled to a tax credit for paid and alone VAT.
The answer to the second question is double-sided accounting.
The third question - the self-insured person (sole proprietor of a company) chooses the type of social security itself (by filing the declaration of commencement of the company's activity) but necessarily imports health insurance.
On the subject of civil contracts.
There is no obstacle to the persons carrying out the activities in the company being on civil contracts, but only on the condition that these are not hidden contracts of employment. In this case there may be serious problems with the Labor Inspectorate (under serious problems, I am thinking of fines starting at 5000 levs and can in some circumstances amount to BGN 15,000 per case).
The answer to the second question is double-sided accounting.
The third question - the self-insured person (sole proprietor of a company) chooses the type of social security itself (by filing the declaration of commencement of the company's activity) but necessarily imports health insurance.
On the subject of civil contracts.
There is no obstacle to the persons carrying out the activities in the company being on civil contracts, but only on the condition that these are not hidden contracts of employment. In this case there may be serious problems with the Labor Inspectorate (under serious problems, I am thinking of fines starting at 5000 levs and can in some circumstances amount to BGN 15,000 per case).
Contributions to social security contributions (social and health insurance) are also due on the accrued amounts under civil contracts. Only the social workers are 4.5% less than the labor contracts. Income tax is 10% and deducted and paid by the employer during the first 9 months of the year. For the last 3 months, it is the responsibility of the recipient to declare and pay them with his annual tax return for the current year (to be submitted by 30 April of the following year). If the persons working under a civil contract are from EU countries, then they are required to submit an A1 form from the country of which they are (to determine the applicable legislation) and depending on which country the applicable legislation is charged, the contributions are charged. (If, for example, Austrian is the Austrian law, the company will have to charge social security contributions under the Austrian social security legislation and transfer it to a person's account in Austria, but the tax will be withheld and paid in Bulgaria. is the Bulgarian legislation (for example, the Austrian lives with his family in Bulgaria and the center of his economic interests is in Bulgaria) then he acts like with the Bulgarian citizens.
If people working under civilian contracts are Bulgarians living and working in third countries, they must again provide the A1 form of the NRA for applicable legislation and according to which country it is mentioned, its insurance and tax legislation will be respected.
If the services of individuals - freelancers are the simplest option - they issue an invoice for the service rendered, the company pays it and has no tax and social security obligations.
About an offer - I can not give you one at this point because I can not determine the volume of work that we need to do for your company. This can be done after a meeting to determine what activities we will have to perform, and to guidelineally determine the volume of document turnover.
Greetings.
