Sales through OLX, Instagram, Facebook

Sales through OLX, Instagram, Facebook

 

Question:
Hello!

For about a year now, I have been earning additional income by reselling goods through platforms such as OLH, Instagram and Facebook, with sales being made through Econt with cash on delivery, and I run as an individual. But I don't have cost invoices. I understood that Econt is bound to the NRA and every cash on delivery is reported in their system. My question is what can I do at the end of this year to declare my income?

For now, I have considered as options to create a company in my name, but considering that I am a student and as such I am insured by the university, is it worth stopping my insurance from there to start a company and self-insure and there is an alternative?

And the other option that I know about is to stay as an individual and at the end of the year to issue a declaration under Art. 50.

Thanks!

 

Answer:

Hello,

To declare your income at the end of the year you must file an annual tax return by 30.04. next year. In the relevant appendix №2 you have to fill in the realized income and expenses and you will be taxed with 15% tax on the received profit.

You need to keep in mind the following few points related to the activity you are performing:

1. Even as a natural person, you still carry out a commercial activity, which in turn leads to an obligation on your part to insure yourself. The fact that you are a student and you are insured (although as a student you are insured only for health, but not for other social security funds), does not release you from the obligation to insure on other grounds, if any.

2. Selling its goods through Econt, by cash on delivery requires the presence of a cash register and the issuance of fiscal notes. In order not to be required to have a cash register and therefore not to issue cash receipts, you need to organize things so that you work with "postal money orders". Econt (as well as other major courier services) also offer this way of working, so I recommend that you consult with them if they have any requirements for such a way of working and what exactly.

3. If you reach a turnover of sales over BGN 50,000 for the previous 12 months, you will have to register for VAT (such registration is also possible as an individual).

4. You mentioned that you sell the goods through Internet platforms, some of which are not Bulgarian (Facebook and Instagram) If for this purpose you use and pay for advertising to those who are not Bulgarian or receive any service from a person outside Bulgaria ( ads, sales commissions and other services on Facebook, Google, Amazon and the like), it will be necessary to register for VAT. Please note that the deadline for VAT registration on this basis is 7 days before receiving the first service.

In conclusion, we would like to tell you the following. Nowhere in the law is it explicitly stated that you are obliged to register a company in the course of your business, but this does not mean that the law will not treat you as a trader and require everything that a registered trader requires. Of course, there are exceptions, but they apply to other types of activities performed by individuals. If you want to comply with all legal regulations, in no way do you save on insurance and taxes by operating as an individual. The only thing you achieve is to complicate your reporting and declaration of your activity, which in turn leads to more complicated relationships with the NRA bodies, in case of possible inspections by them.

We hope we have been helpful to you.

Greetings!