Brokerage site

Brokerage site

 

Question:

Hello,

We have a site where people offer their services for work. Customers have to pay the full amount for the service in the Epay.bg account of the site, and after the service is rendered the site sends the amount to the person who has done the work. The site keeps a commission for itself.
Example: The client sends $ 120. in Epay on the site, and the site sends $ 100. to the person who performed the customer service. The client is obliged to conclude a civil contract with the person performing the service. The site will pay income tax on the entire amount. Our question is:
- It is possible for these types of translations to happen through Epay and the site to be legal, what should be the reason for paying the site to the people who perform the services in order for everything to be legal.

Is it possible for the MALL of the company (site) to receive money as a service provider? Or it is impossible because he is the owner of the company.

How do companies that pay for a given service account for the cost of the service, with the deducted fee to which they will be invoiced from the intermediary site between the two parties: Client and Service Provider?

Thanks!

 

Answer:

Hello,

In reality, you are providing a venue where two parties meet and conduct transactions with each other, and you are also a pay agent. But this does not mean that all the money that comes to you is your turnover. Your turnover is just the amount of commission you get for it. For this commission you must issue an invoice to the person with whom you deduct it.

But in order for this to be good for the NRA, it is necessary to have a signed contract with your clients, which explicitly states that the transfers will go through your account registered in Erau, what is the amount of your commission, that you have an obligation to transfer the due the amount of the service provider that you have no obligation to withhold insurance and taxes from these amounts (more specifically, that it is the responsibility of the client who orders the services).

The reason for the transfer should be, for example, "transfer by request # ??? on ......... (name of the paying customer)".

Then the site will pay tax only on the amounts that remain as "commissions" to it (naturally reduced by site maintenance costs, Erau fees, etc.).

Please note - it is very important to have a contract with the clients who transfer the money to you.

There are three ways a business owner can legally receive money from their own business:
 - by dividend distribution of corporate taxable profit and additional 5% dividend tax paid
 - as remuneration for the personal work done in the activity of the company (not work on the management of the company, but work in connection with carrying out the main activity of the company)

 - as remuneration under a management and control contract.

In general, you have:
1. accrued your claim for the sales made through them

2. accrued your obligation for the received and unpaid invoice for the brokerage commission

With payment, the intermediary site translates the difference between the amount you owe (1) and the amount you owe (2). Accounting between the settlement accounts in the accounts of the site-mediator makes a mutual deduction with the amount of the outstanding amount, which closes the obligation of the company for the intermediary services of the site-mediator and reduces the receivable from the same for the sales made. The difference between the receivables is closed by the money transfer you receive from the intermediary site.

We hope we have been helpful.

Greetings!