Registration of patent activity
Registration of patent activity
Question:
Hello!
I ran into a situation that I don't know how to resolve. A year ago, I created an Air-bnb profile and uploaded my short-stay accommodation (for the times when I am not using it). Unfortunately, I thought that this was quite enough and I did not categorize it or enter it in the relevant municipality. Subsequently I found out about the possibility of "Patent Tax" (which I wish to take advantage of instead of paying 15% profit tax as happened last year) I failed to note that I am an individual who is not assigned to an employment contract. What should I do to not miss the patent tax deadline of January 31?
Thanks in advance!
Answer:
Hello,
You need to go to the municipality where the property you are renting is located. A categorization of the property should be extracted there. After that, you will be able to submit an application for patent activity to the municipality again. The term is generally until January 31. In cases in which activity is started after this date, the declaration is submitted before the start of the activity.
In addition to the patent tax that you will have to pay, you will also owe insurance contributions for the time during which you carry out your activity.
Another important thing you should know is that if you rent out an apartment through Air-bnb, you also have an obligation to register for VAT no later than 7 days before receiving an invoice from Air-bnb . The obligation derives from Art. 97a of the VAT Law, according to which when receiving a service from a company outside Bulgaria, an obligation to register for VAT arises. This is a special regime in which you will not owe VAT on your sales, but you will owe 20% VAT on the value of services received from companies outside Bulgaria (in your case, 20% on the value of invoices from Air-bnb).
We hope we have been helpful!
Greetings!