VAT registration for electricity production through photovoltaic panels

VAT registration for electricity production through photovoltaic panels

Question:
Hello!
An individual purchases and installs photovoltaic panels on his own property. There are invoices for their purchase. About ten months have passed since the panels were installed, but the person is not registered for VAT. What should he do, since the goal is also to produce electricity for sale? Does it have to be registered for VAT or can the income be declared with the annual tax return with the relevant attachments?
Thanks in advance!

Answer:
Hello,
VAT registration in your case is mandatory only if you reach a turnover of BGN 100,000 for the last 12 months. Naturally, there are many other conditions for mandatory VAT registration, but we believe that they are not applicable in your business.
Regarding the reporting of realized income - you can do this as an individual, by submitting an annual tax return and appendix 2 (for sole traders) to it. You will owe insurance at 28% on realized income and tax at 15% on realized income minus insurance payable (in effect you will owe tax and insurance as an ET would, as the law says that an individual who carries out commercial activity without a registered trader is equated to an ET).
We hope we have been helpful!
Greetings!