Earnings from OnlyFans

Earnings from OnlyFans

Question:
Hello!
I am a natural person living in Bulgaria. I get income from Youtube, Twitch and OnlyFans.
The income I get from Youtube is for showing ads on my videos. A monthly subscription where videos can be viewed only for paid members of the channel. Donations via the Thank You button.
From Twitch, my income is from in-stream ads and a paid monthly subscription to the channel.
From OnlyFans, my income is from videos that are paid to be watched. The account is free.
From 2023, I only deal with Youtube, Twitch and OnlyFans. I don't pay insurance and taxes and no one has looked for me from the NRA. My income is about BGN 4,000 per month. I know I am subject to fines and interest but what do I need to do to be legal.
Thanks in advance!

Answer:
Hello,
You can declare your income as an individual. In any case, however (both as an individual and as a company), receiving income from a legal entity outside Bulgaria, you will be subject to VAT registration (according to Article 97a of the VAT Law). The legal deadline for this registration is no later than 7 days before receiving the first income. This is a special registration regime, where you will not owe VAT on the income received, but you will have to declare it monthly to the National Revenue Agency.
As an individual, you will owe 27.8% insurance and 15% tax on the income received, deducted by the amount of insurance. If you are already insured at the maximum insurance income, you will not owe insurance. They are paid every month and declarations form 1 and 6 are submitted to the NRA.
As a company, you will owe insurances calculated on the minimum insurance income (BGN 933.00) - BGN 260 / month and 10% on the profit (income received, deducted by expenses related to the company's activities). Again - if you are already insured at the maximum insurance income, you will not owe insurance.
For the income you indicated, it is more profitable, from a tax point of view, to register a company and work through it. It's also a better option from a VAT registration point of view (which as mentioned is mandatory) as going to do it now as an individual will trigger an audit leading to serious fines. When registering for VAT through a company, this check will be made on the company - which, provided it is newly created, will not lead to negative consequences. Here we make the clarification that there is no guarantee that on some other occasion in the future you will not be checked by the National Revenue Agency as an individual and still both violations and undeclared income will be detected.
We hope we have been helpful!
Greetings!