Sales with cash on delivery by an individual
Sales with cash on delivery by an individual
Question:
Hello!
I am an individual and I have been sending goods with cash on delivery for several months. I am currently out of business because I am worried about how I can declare this turnover. I have invoices for buying the goods.
Thanks in advance!
Answer:
Hello,
Your only option is to declare in your annual tax return the income you have earned. However, keep the following few things in mind:
1. The activity you describe is a commercial activity and according to the commercial law you must be a registered trader in order to perform such activity, ie. when declaring this income, there is a risk that the NRA will impose a fine on you for carrying out this activity without being a registered trader.
2. If you do not declare the income received by you, there is a risk that the NRA will establish that you have carried out commercial activity, but you have not declared the income received from this (and, of course, will establish that you have carried out commercial activity without being a registered trader ).
3. The National Revenue Agency receives monthly reports from all courier companies operating on the territory of Bulgaria, on the basis of which they carry out inspections of the delivered deliveries with cash on delivery.
4. The activity you perform and the way you receive the money from your customers presupposes the presence of a cash register and the issuance of a cash receipt by you to your customers. Of course, this cannot happen if you are not a registered trader, but in the end the NRA may impose a fine for this as well.
In conclusion - things are quite connected and if you decide to carry out this activity in the future, we recommend that you register as a trader (the best option is to register a company in your name - Ltd.). Regarding the income already received, we recommend that you declare your income as an individual and pay the relevant tax. It is likely that the NRA will not establish the violation described above at all and you will get away without fines. They are also likely to even find violations to look more favorably on the case, as you have not tried to evade taxes.
We hope we have been helpful to you.
Greetings!
