Sale of author's books

Sale of author's books

 

Question:
Hello!

As a private person, I want to send a small number of my books (published, published) through a courier company and cash on delivery.

Customers will pay for the delivery and the value of the book.

Do I, as an individual, have to report these payments?

Thanks in advance!

 

Answer:

Hello,

Any income of a natural person (private person), including the income from the sale of books described by you, must be declared and the respective tax is due. In your case, the tax due in the amount of 10%, and the amount that is taxed is the amount of total income reduced by 40% of statutory expenses (this is in case you say "my books" you mean - your author's books) .

Expenditure documents are not sought and therefore not recognized in your case. Only 40% of legally recognized expenses are deducted from the revenues. Also, if you are a self-insured person, the insurances paid by you are also deducted. But if you are the author of books that you sell (ie you sell your personal copyright) you have no obligation to self-insure.

In your case, you need the following:

1. Every quarter to submit a declaration under Art. 55 of the Personal Income Tax Act (the Personal Income Act), with which you must declare and pay advance tax accordingly.

2. If you decide to be self-insured (or if you perform another activity that requires this) - a declaration form 1 must be submitted monthly, declaring the due insurance contributions.

3. After the end of the year to submit an annual tax return under PIT, with which you must declare your total income and advance payments. and if you have a surcharge tax. Also with the annual declaration are declared other incomes that you have acquired as an individual, as well as the insurance contributions made during the year.

Whether through a company or as a private person, your activity does not in itself require VAT registration. Here are a few "principles":

1. Since your activity does not require VAT registration, you do not register and the real VAT does not concern you in any way - you do not declare and do not pay anything related to VAT.

2. Although your activity does not require VAT registration, you decide to register on your own. In this case, you will have to charge VAT on your sales. You will also be able to deduct VAT on purchases made that are related to your business and in which purchases include VAT.

3. Although your activity itself does not require VAT registration, you have to register for VAT on other indicators. The main reasons would be - reaching a turnover of BGN 50,000 for the last 12 months or if you receive and / or sell services to companies that are not Bulgarian, but are established within the European Union (for example, you decide to advertise on books on Google or Facebook). There are other reasons for mandatory registration, but they are quite specific. Depending on the reason for mandatory registration, VAT is reported differently.

The main thing is that the VAT law covers all traders within the meaning of the commercial law (whether it is a natural person or a legal entity) and the rules of this law apply to everyone. Ie the fact that you are an individual would in no way alleviate the VAT declaration and payment regime. Something more. We recommend that if you think that you want or need such registration, you should register a Company and carry out this activity through it, as VAT registration of an individual could have negative consequences (for example, when selling movable / immovable property). , which even if it has nothing to do with your business - you will owe VAT).

We hope we have been helpful to you.

Greetings!