An individual carries out commercial activity

An individual carries out commercial activity

 

Question:
Hello!

As a natural person not engaged in commercial activity, I registered for VAT. The reason for this is the purchase and installation of a photovoltaic system on my own real estate, with which to sell electricity to an electricity distribution company. I received invoices for the purchase of the photovoltaic system, for which I submitted VAT returns. I still do not have a contract with the electricity distribution company for the purchase of electricity. When this happens, they will send me a report with the amount of electricity produced, and I will invoice it with a VAT invoice. My questions are the following:

- do I have to keep double-entry bookkeeping for reporting purposes? If so, should I include any payments I make through my bank account (payment of bills, purchase of goods) that are not related to the taxable activity?
- should I file an annual income tax return at the end of the year and if so, where should I describe it?
Thanks in advance!

 

Answer:

Hello,

According to Art. 26, para. 7, the incomes from economic activity of natural persons, who are traders in the sense of the Commercial Law, even if they have not been registered as such, shall be taxed, as the incomes of a Sole Trader would be taxed. For its part, according to Art. 1, para. to answer your questions:

1. You must declare your income.

2. The income is declared with an annual tax return of the natural persons, as you have to fill in the part concerning the income from activity of Sole Trader.

3. In order to be able to declare everything properly and to be able to "protect" the declared amounts in case of possible checks, it is proper to keep correct accounting. Specifically regarding bank payments, in order to facilitate you, we recommend that you open a separate bank account with which to operate only for things related to your business activity.

We hope we have been helpful to you.

Greetings!