The State Tax Service of Ukraine (DPS) has recently made important explanations for the sale of goods through online platform, in particular on sites, such as OLX and Prom.ua. It is important to know who can be fined for online sales and under what conditions it can be recognized as entrepreneurial activity.
The DPS explained that the sale of personal belongings through online platform will not lead to fines, unless it is carried out within the framework of business. However, if a person systematically sells goods purchased for resale, it can already be considered entrepreneurial activity, and the tax authorities may require the taxpayer to register as a FOP (natural person-entrepreneur) and pay taxes in accordance with the legislation.
Entrepreneurial activity includes regular sale of goods for profit, as well as conducting such activities on a permanent basis. If an individual buys a product for resale or regular service, he or she must register as an entrepreneur.
However, if a person sells personal belongings (such as old books, clothing, household appliances), it is not considered entrepreneurial activity and is not subject to taxation. The DPS specified that penalties can be applied only if the sale is systemic, and not a single act of getting rid of unnecessary things.
The DPS emphasized that the sales volume matters. Yes, if a person sells large volumes of goods, it may indicate his or her activity as an entrepreneur. In this case, the tax service can consider this sale as a violation to be fined.
Declaration of income from the sale of goods through the Internet is binding on those who are engaged in entrepreneurial activity. Therefore, anyone who receives income from such sales has the right or obligation to register their activities as a FOP.
In order to avoid fines, it is enough not to carry out regular sale of goods for profit. If online sales make up part of business, it is necessary to register in time as an entrepreneur and pay taxes in accordance with the rules of the legislation.
In addition, it is worth noting that the DPS enables self -employed persons who conduct such activities to work on a simplified taxation system, which makes tax liabilities less burdensome.
The DPS clearly explained that penalties for the sale of goods on OLX and similar platforms are not threatened, if it is not systematic business. It is important to remember that if you are selling goods regularly, you should register as an entrepreneur and fulfill tax liabilities to avoid penalties.
