Import of goods from Finland.

Import of goods from Finland.

Question:
Hello!
I want to ask you a few questions that are not clear to me.
- What company do I need to be an official importer of goods / clothes / arriving from Finland?
- What are expected to be my expenses, apart from the purchase of the specific item?
- With one company, can I perform all the services: import goods from Finland to Bulgaria, sell the goods in Bulgaria - online, as well as wholesale goods that I will produce in Bulgaria under my own brand.
I hope I managed to ask my questions correctly.
Thanks in advance!

Answer:
Hello,
An ordinary EOOD (one-man limited liability company) will be quite sufficient for the activities you described. Through it, you will be able to perform an unlimited number of activities, including those mentioned above.
Regarding the expenses you will face:
1. Costs of opening a company:
- initial capital - when registering a company, a collection account must be opened in which to deposit the initial capital of the company - the minimum amount is BGN 2.00.
- state, bank and notary fees - BGN 130.00 - BGN 160.00, depending on the bank where you choose to open your collection account.
- if you cannot prepare and enter the company registration documents yourself, you will most likely have to use the services of a lawyer/accountant for this. Here the prices also vary from BGN 300.00 to BGN 500.00
2. Insurance costs
- as the owner and manager of the company, you will have to insure yourself. The minimum monthly insurance contributions for this year are BGN 198.00. If you are already self-insured on another basis and/or if you are already insured on the maximum insurance income (for this year BGN 3400.00), you will not owe monthly insurance contributions as self-insured person.
- if you have appointed staff, you will owe insurance contributions calculated on the agreed salary. The monthly insurance contributions are in the amount of about 50% of the net amount to be received (the net salary).
3. Expenses for taxes
- profit tax - at the end of the year, if your company has made a profit, you will owe 10% tax on the profit made
- dividend tax - at the end of the year, if your company has made a profit after profit tax has already been paid, if you decide to take this profit for yourself, as an individual, you will owe an additional 5% dividend tax.
4. VAT (value added tax) - depending on your activity, realized turnover, what your clients are (individuals and/or legal entities) and where they are located, there are different hypotheses for VAT registration. In the activities you described, we can isolate 3 cases in which VAT registration may be required:
- upon reaching sales on the territory of Bulgaria of BGN 50 thousand for the last 12 months. In this registration mode, you will have to charge 20% VAT on the value of your sales. If, within the framework of your economic activity, you incurred expenses for which you received invoices with VAT included in them, then you will be able to deduct this VAT from the VAT you will owe on your sales. Every month, by the 14th, you must pay the difference between the VAT you owe and the VAT you can deduct.
- when "importing" goods from EU member states (the correct term is intra-community acquisition). When you make intra-Community acquisitions worth more than EUR 20,000 for the calendar year, you will have to register for VAT. This registration does not entail a real obligation to pay VAT. The regime is purely registration-based with the obligation to declare intra-Community acquisitions.
- if you receive services from legal entities outside Bulgaria or provide services to legal entities in the European Union, you will also need to register for VAT. It's common for businesses like yours to pay for Google ads. Facebook or use the services of foreign online platforms (Etsy, Amazon. Shopify, etc.). Using such a service, you immediately have an obligation to register for VAT. In this mode, you will owe 20% VAT on the value of services received from persons outside Bulgaria.
5. Accounting - of course, if you do not have the opportunity or the necessary competence to manage the company's accounting yourself, to submit the necessary declarations on time and to ensure that there are no discrepancies between your activity and the legal norms, you will need an accountant. The monthly expense for accounting will depend on several factors - scope of activity, document flow, availability of VAT registration, staff, etc.
We hope we have been helpful!
Greetings!