Dropshipping

Dropshipping

 

Question:
Hello!

I am interested in how I can sell on the principle of dropshipping through my own website or Facebook channel, as an individual.

The warehouses offer a Civil Contract or a Mediation Contract or a Commission Contract - I don't know if that's the case.

I will not physically own the goods.

I will advertise it and sell it at my expense.

For the sales I make I will receive a fee or commission, once a month by bank transfer or money transfer.

Here come my questions.

1. Can I have an e-shop and sell through it on the basis of these contracts, as an individual?

2. I am currently working on an employment contract.

How should I account for the income I will receive? What tax do I owe? Do I have to pay insurance again?

Thanks in advance!

 

Answer:

Hello,

What you describe as an activity under the Commercial Code is a commercial activity. Accordingly, in order to do so legally, you must be a registered trader in some form. Theoretically, you have two options - to register as a Sole Trader (ET) or to register a Company in your name (EOOD).

 - Sole Trader (ET) - In this form of work you will owe an annual tax of 15% on the realized profit. During the year you will owe monthly social security contributions calculated on the minimum insurance income for the year or higher. At the end of the year, an annual equalization of the insurances is made, and if the realized profit is higher than the insurance income on which you have contributed insurances during the year, you owe insurances on the difference. It should be borne in mind that in addition to the minimum insurance income, there is also a maximum. The annual amount on which you owe social security contributions may not be higher than the maximum insurance income recalculated on an annual basis. Also, the amount on which you are insured under an employment contract is also included in all these accounts, and if, for example, you are already insured for an amount equal to or greater than the maximum insurance income, you will not owe insurance such as sole proprietorship.

Purely functional, when you work as a sole proprietor, the law assumes that you and the sole proprietor are one. Ie the obligations of the sole proprietorship are also your personal obligations. The income of the sole proprietorship is also your personal income.

- Company (EOOD) - In this form of work you will owe an annual tax of 10% on the realized profit. Additionally, if you want this profit to be distributed to you as a dividend (ie the money your company has made to become your personal money) you will owe an additional 5% dividend tax. The insurances you will owe will be recalculated on the insurance income you choose, but not less than the minimum monthly insurance income for the astronaut. The EOOD does not make an annual equalization of the insurances.

Purely functional, when you work as an EOOD, the law separates the EOOD from you as an individual. Ie the obligations of the Ltd. are his and you are not personally responsible for them.

In conclusion, if you decide to engage in the activity you have described, we recommend that you do so in the form of a Company (Ltd.).

We hope we have been helpful to you.

Greetings!