Consignation or contract for Storage in trade

Consignation or contract for  Storage in trade 

 

Question:

Hello!

I want to ask about the following case: I have a company with which I will sell certain goods. Since I do not have a lot of money I will take the goods with a storage contract I will find a market and I will add a mark-up and after selling it I will pay it to the company that charges me (a kind of consignment). My question is, will I be able to take the goods on this item once I have signed a storage contract?
And what do you recommend me to register for MDS or wait for a turnover of BGN 50,000?
Thanks!

 

Answer:

Hello,

The Storage Agreement is to receive sums on the invoices issued by you for the storage of goods to the Depositor of the Goods.

Once you get some goods on paper and after you sell these goods you get an invoice for the goods you sell, which you pay later, this is a pure consignment contract. If this is the case, if you have an VAT registration, when you receive an invoice for the purchased goods from a VAT registered company, your company will be entitled to a tax credit for the VAT paid on this invoice.

We hope we have been useful.

Greetings.