Shop on the site Etsy.com

Shop on the site Etsy.com

 

Question:
Hello,

I'm interested, if I open a store on the site Etsy.com, how can I prove my income? As a freelancer? Just as an individual? Is it possible only by displaying bank statements from which to calculate 10%?
Thanks in advance!

 

Answer:

Hello,

In principle, the performance of commercial activity presupposes some kind of registration according to the commercial law.

One option is to register a company. You will have to pay monthly insurances and at the end of the year you will have to determine the profit realized by the company (realized income minus the expenses incurred related to the company's activity) and you will owe 10% profit tax on it.

If you decide not to register a company, you will have to submit a declaration as an individual at the end of the year, in which you can declare the income received by you. You will owe 15% tax on the amount, without the right to deduct any expenses.

There is no free trade option.

Proof of income is made with bank statements and statements from the platform in which you conduct your online trading.

What we want to draw your attention to is that when performing your activity through the site of etsy.com you will receive an invoice for a commission from them. 7 days before you receive this invoice, you have the obligation to register for VAT (whether you will act as a company or as an individual), as you will receive a service from a person outside Bulgaria.

We hope we have been helpful.

Greetings!