Online shopping on Etsy

Online shopping on Etsy

Question:
Hello!
My question is related to starting a trade on the Etsy online platform. Can I start trading digital products without registering a company and instead sell as an individual? And if I start selling as an individual, under what circumstances do I need to legalize things?
Thanks in advance!

Answer:
Hello,
In principle, the activity you describe implies registration as a trader (company, sole trader). For cases in which such activity is carried out by a natural person who is not registered as a trader, the law provides that this person will be taxed as a sole trader would be taxed - 15% tax on the realized profit and about 28% insurance contributions again on the profit, but on an amount not lower than the minimum insurance income.
Another important point that you should consider in the activity you described is that working through the Etsy platform creates an obligation to register for VAT according to Art. 97a of the VAT Law. In short, this article says that if you receive a service (in this case, the service is the platform that Etsy provides you and for which service Etsy deducts a commission from each sale) from a company that is established outside of Bulgaria, you are subject to VAT registration. The deadline for registration on this basis is no later than 7 days before receiving the first service.
We hope we have been helpful!
Greetings!