Goods from the Internet. Import, GOP, commission
I handle commodities from the Internet. Import, GPO, commission are terms I meet on the internet, but the definitions are a bit fuzzy and I need some clarification on some issues to know in which box exactly the business would fall. I accept orders from people with clear preconditions - they order the goods from the sites of the prices that are announced and they owe me a commission rate. I prepare the orders and execute them on my behalf for their account, all the people included in the order pay the value of their orders. When the goods arrive, their customers receive them and pay a commission to me. I organize the order, delivery and payment of the goods to the supplier and the cost of delivery.
My question is, once the terms for my service and the commission rate that each client agrees to and pay for my order, am I a commissioner in the sense of the law and the turnover I have to account for the turnover of my commissions? Is my profit, respectively, the commission turnover less the cost of supply and consumables?
Given the large amounts to suppliers and the commission that is 5-10%, this is important for VAT registration on EU imports.
What are the conditions to be fulfilled in this case, in order not to have my personal turnover - the purchases of my clients that I do only for them, on my behalf and on their behalf?
I do not buy goods for sale, I do not have a store!
To be just a service provider as a broker, a commissioner, you need to tell the real suppliers who customers what goods they send and they deliver. From the amounts received from the final customers, you have to deduct the commissions you have agreed with the suppliers and transfer them the remainder. Against the amount of the commission deducted, you must issue an invoice to the suppliers.
Or, the other option to be a commission agent is to get from your clients only commissions for mediation and the value of the goods to pay to the real suppliers and not to you. If you understand correctly, the scheme you describe is a purchase of goods with a subsequent sale (work in your own name and you deliver to the customers of the goods). This is a pure form of e-commerce.
It is not clear from your question how you are doing business - as a natural or legal person. As a natural person, you can pursue business as an ET or as a self-employed person. E-commerce is not among the so-called "liberal professions". This requires you to be an ET or to act as a legal entity.
Regardless of the form of business activity you have chosen, you must comply with the requirements and criteria for mandatory VAT registration:
- on ax. Article 96 - when you have reached a taxable turnover of BGN 50,000 or more for the last 12 months before the current one;
- on ax. Art. 97a - when you are a supplier or recipient of services from EU countries. If you, for example, pay for services in EU countries (advertising on Google, Facebook, maintaining your trading sites or paying commissions on foreign sites for your sales announcements, etc.), you are required to register under VAT on the basis of this Article.
- on ax. Art. 99 - where the value of intra-Community acquisitions - VPA (purchase of goods from EU countries) exceeds BGN 20,000 for the current calendar year.
We hope we were useful to you
Thank you for your quick and competent response!
If so, I would like to ask the following:
Commodity leaves from the US, I buy it by using the intermediary of the supplier itself for Europe. The intermediary is a taxable person in Europe (I transfer the money to the intermediary / freight forwarder), the goods leave the US, arrive in another EU country and are taxed on my behalf through agents of the intermediary forwarder, then arrives in Bulgaria. Ownership of goods becomes mine when I arrive in Europe. Is this GOP?
No, it is not the BOP but is the import of goods from third countries, which is being cleared at the customs office of entry into the EU (in this case, in the EU country where the goods entered).