Income from Google

Income from Google

 

Question:

Hello!

I have income from Googles, from advertising. I'm a physical person, I have no company. I want to ask you how to proceed according to the income and taxes I have to pay. My Google earnings are from ads, with Google displaying my ads on my website and giving me a percentage of the money Google earns from the companies. My monthly earnings from Google are about $ 1,000 as they have exceeded them, but I have not paid any taxes and I do not know how to proceed.
Since I am not at all acquainted, I would be delighted if you explain to me all the steps I have to take.

 
Thanks a lot!  

 

 

Answer:

Hello,

In fact, you are doing business as an individual (without registering in any way whatsoever - illegally) because you are actually providing services to a EU taxable person (Google) and you are receiving income from Google.

To legalize your activity, you need to register one EOOD. Next, it is mandatory to register VAT (according to Article 97a of the VAT Act, the persons providing services to a taxable person in the EU are subject to compulsory registration for at least 7 days before the first service delivery). Monthly, you will need to file statements about the social security contributions you will need to make, as well as VAT returns, and issue invoices to Google Ireland for the funds received.

Yearly financial statements and tax returns are prepared at the end of the year, and for your earnings during the year, your company will owe 10% corporation tax. If you want the company's profits to be paid to you as a dividend, you will have to pay another 5% dividend tax.

If you are going to register as a self-employed person, you will have to re-register for VAT, but you will be required to register with your bank account and will see that you have received money for doing business without registration and should have register VAT much earlier and you will be in breach of both the VAT and Physical Income Taxes (DIPL) laws, and given the announced turnover, you will have to pay quite large amounts of taxes and taxes. sanctions.

In any case, once you have received Google's earnings for a service you have done, you have been doing business for which you have had to pay the relevant taxes you have not done and for which you are eligible to incur the appropriate sanctions.

We hope you have been helpful with the information and if you need help with registration of a company and subsequent accounting services and consultations, you can contact one of the offices of our accounting house in Plovdiv, Rousse, Sofia or Burgas.

Best regards.