Registration of a company, purchase of company car and employment contract

Registration of a company, purchase of

с company car and employment contract 

 

Question:

Hello,
I plan to make a company registration (EOOD) and buy in its name a service car for personal use.
At the same time, I work in another company as a natural person on a permanent employment contract.
In this case, do I have to pay social security or any other taxes and fees to EOOD?
Since it will probably be a long time before my company starts to operate and have revenue, if it freezes its activities, will it reflect the use of the car?

 

Answer:

Hello,

If you proceed to a company registration, but you do not declare anytime that your newly registered company has started business, you do not owe insurance as a self-insured person. Once your company starts doing business, you are required to file a business start-up declaration within seven days, and you must declare the type of insurance as a self-insured person (for all insurance or pension only). From that date, you are required to declare and pay social security contributions as a self-employed person (SAL), even if you are insured on a labor contract in another company. An exception will be made only in the case where the other company is insured at the maximum insurance threshold, and only then in the start-up declaration you will not indicate that you will be self-insured (SAL).

The fact that you want to register a company and buy a service car through it is your decision. From a tax point of view, if the business of the newly created company does not require the availability of a car, then for tax purposes you will not be recognized the cost of this Car (neither purchase costs through accrued depreciation over the next 4 years, nor running costs for fuels, oils, slots, etc.)

If there is a need for a car (freight trades, courier services and many other activities) in the subject of the company's activities, you will have to allocate the cost of the activity to the private use costs of the car (by issuing roadmaps describing the routes ) And for tax purposes you will only be recognized as those related to the Company's business.

From the point of view of the VAT Act, there are precisely regulated cases in which you will be granted a tax credit for the purchase of a service car and you will be refunded the VAT paid when purchasing it - when you carry out taxable supplies and services with the vehicle. If the car is light, tax credit will only be recognized if you are taxiing, guarding, hiring, courier or driver training.

In conclusion, if your intention to proceed to a company registration is only related to the fact that you want to buy a service car and use it for your personal needs, in our opinion it is not an economically justifiable act. The solution, of course, is yours.

We hope we've been useful to you.

Best regards.