E-commerce is gaining more and more popularity and in recent years it has become one of the most attractive areas for creating a business. Running an online store is among the most common practices today. This is by no means accidental and fully corresponds to the fact that more and more consumers prefer to choose the convenience that online shopping offers. Especially after the COVID-19 pandemic and its impact on the whole world, online shops have become a trend.
The truth is that the benefits of online commerce are not just for consumers. Creating an online shop for different goods and services is an easy process today, thanks to the multitude of available tools that the digital world offers. As a rewarding endeavor, running an online shop opens opportunities for rapid growth through quality marketing, access to diverse audiences and stable income. There is no need to worry about recruiting staff, maintaining a physical location, paying salaries and rent, cleaning, or paying electricity and water bills for the workplace.
An online store can be managed from anywhere, anytime.
But one of the key elements when considering how to grow an online store is e-store registration. It is also necessary to familiarize yourself with everything related to the accounting of an online shop. In this article, we will delve deep into the topic and examine these questions in detail.
Online store registration
When it comes to creating an online store, it is important to note that an online store without a company is a doomed venture. In order for your online business to develop and grow, registration of an online trading company is necessary.
First, you’ll need to register your company with the National Revenue Agency. It is mandatory to create a company where at least one person is registered, which will allow conducting commercial activity. Registration with the National Revenue Agency allows for the submission of the necessary information for the electronic store and the individuals making sales.
According to the law, those who carry out sales of goods or services through their own or rented domain, provide a platform for carrying out digital sales and accept payments for which a fiscal receipt is required, are obliged to submit information to the National Revenue Agency. On the other hand, those who carry out sales of goods or services through an online store, but accept payments for which a fiscal receipt is not required, are not required to submit information to the National Revenue Agency.
The necessary information to be submitted to the National Revenue Agency includes:
- Information on the web address of the electronic store;
- Information about the individual making the sales through the electronic store;
- Information about what goods or services being sold;
- Data on the software of the electronic store as well as the hosting provider and others, detailed in Appendix No. 33 of Regulation No. H-18;
- Online store VAT registration.
Online shop VAT registration
In addition to the registration of an electronic store with the National Revenue Agency, it is essential to mention the registration of an online store under VAT.
When it comes to VAT registration, the conditions and laws are the same for physical and electronic trade of goods and services. Those who have reached a taxable turnover of BGN 50,000 or more for a period no longer than the last 12 consecutive months before the current month are obliged to submit an application for VAT registration within 14 days of the end of the tax period.
What’s included in the accounting of an online store
After the electronic store has been successfully registered, it’s vital to take care of its regular and high-quality accounting. The accounting of an online store includes various elements that are equally important for the legal development of the company. Some of the main activities in the accounting service of an online store include:
- The collection of information regarding compliance with legislation;
- Preparation of statements, recapitulations and payment orders to the budget;
- Cash register accounting;
- Accounting reporting of one or more bank accounts;
- Annual accounting closing, including submission of annual tax return and publication of accounts;
- Keeping records according to the Accounting Act;
- Expenses accounting;
- Revenue accounting.
These elements ensure that the e-shop complies with VAT and is not subject to sanctions that can affect the reputation and financial stability of the business.
Does an online store need an accountant?
Regardless of how big or small your e-shop is, it is advisable to rely on a professional accountant. Accounting is often a complex and cumbersome activity, especially for those who are not specifically profiled in the field. That is why most online store owners prefer to partner with experts in the field.
At MKAFinance, we offer the full range of accounting services for an online store. Our team also includes experienced lawyers and other legal experts who can offer advice in case questions or doubts arise regarding the legal aspects of running a business. In addition, we have our own cloud-based infrastructure. This makes data access easier for our customers, as they can download the information they need at any time.
Professional e-store accounting can save you time, energy and financial resources. Relying on a specialist, you can also be sure that your company meets all the deadlines for submitting specific documents, which will allow you to avoid a number of consequences.
Focus on more important priorities, such as developing a successful brand, while professionals handle the accounting of your e-store. Trust an accounting firm and enjoy the process of growing your online store without unnecessary risks and worries. We are available to support you and provide more information on how we can help.