Retail tax

Retail tax

 

Question:

Hello,

I am about to register an ET with an object of activity - retail. However, I also have the opportunity for the so-called. divergent trade, in which I will send products by courier. Retailing falls within the scope of patent taxation. Overall, my ambiguity is how retail is really combined with retail. Does the presence of diversified trade mean I should be taxed income?
Thanks in advance!

 

 

Answer:

Hello,

First, consider whether it would be more profitable for you to pay a firm patent tax as a natural person (ET) or a corporate income tax (EOOD).

This depends mainly on which municipality you will determine the amount of patent tax (the amount is determined by category of municipalities), the volume of sales and the mark-up with which you sell.

If, after the analysis, you have chosen to levy a patent tax as an individual, you should bear in mind that if:

- you have a retail store under 100 sq.m.

- your turnover for the last 12 months is below BGN 50000.

- you are not registered for VAT

- you have no other business as an individual, with the revenues from which you generate in it, collected with the revenues from retail trade does not exceed BGN 50000.

it doesn't matter whether you only shop from the store or ship the goods by courier to your customers to pay patent tax under the local taxes and fees law.

We hope we have been helpful.

Greetings!