Online sales
Online sales
Question:
Hello!
I am interested in what is the procedure for selling goods online and sending them through courier companies?
Thanks in advance!
Answer:
Hello,
We assume that you are interested from a tax and insurance point of view, how things stand for the activity you describe. Generally speaking:
The activity you described is a commercial activity. According to the Commercial Law, once you carry out a commercial activity, you must register as a trader. For you, this means registering as an ET or registering a company in your name /EOOD/.
With the ET you will owe an annual tax in the amount of 15% of the realized profit. In addition, you will also pay monthly insurance contributions calculated on the minimum monthly insurance income (710.00 for 2023) or on a higher amount (at your request). At the end of the year, the insurance income is equalized. If the realized profit is higher than the income on which you paid insurance during the year, you will have to pay insurance on the difference.
With the EOOD, you will owe an annual tax of 10%. Again, you will pay monthly insurance contributions calculated on the minimum monthly insurance income (710.00 for 2023) or on a higher amount (at your request). In this case, there is no annual equalization of insurances. If you want to "take" the profit realized by the company, at the end of the year you have to pay an additional 5% dividend tax on the amount of the profit that you distribute to yourself.
Regardless of what form of activity you have chosen, depending on the volume of sales, from where and in what volume you buy goods, to whom and in what volume you sell goods and whether you receive services from persons outside Bulgaria, circumstances may arise for mandatory registration VAT.
If you carry out the activity you mentioned without having registered as a trader, the NRA still allows you to declare your income, equating you to an ET (ie they tax you as an ET). Taxation as an ET is less advantageous than taxation as an EOOD. If your activity requires VAT registration, it is also better to be an EOOD, not an ET/natural person. And last but not least - it is not clear how long the NRA will be kind and allow individuals to declare their activity in this way without imposing fines for not being registered traders. Therefore, we recommend that you register a company through which to carry out your activity.
We hope we have been helpful!
Greetings!
