Why are online stores becoming more popular?
Online stores are among the most popular forms of sales via the internet. There are several factors that contribute to its popularity. First of all, the internet constantly gives us new solutions that make us more efficient, and, as a result, makes internet sales more popular. Secondly, it allows us to save costs on things like space rent – we don’t need to rent a locale to conduct our sales anymore. Thirdly, internet sales are more convenient than personal sales – you can choose the hours you dedicate to it and automate a lot of the processes. The clients also appreciate that for of sales more, because they can easily compare the price and quality of the product among many sellers. Finally, shopping without leaving the house saves a lot of time.
Legal requirements for an online store
You don’t need to fulfil many requirements to set up an online store, but you need to know that certain items cannot be sold under the law. The sales of medicine, alcohol, weapons, ammunition, explosives, crop protection substances and currencies is either impossible or made much harder.
There are many forms of online sales, among them:
- One-person company
- Civil-law partnership
- General partnership
- Limited partnership
- Partnership limited by sales
- Private limited company
- Share company
How to set up an internet store?
Internet stores set up by one-person company or by the civil-law partnership need to be registered in CEDIG. All other forms, however, need to be registered in the KRS. Additionally, at least a day before you sell items or services that fall under the VAT, you need to submit the VAT-R form. It makes you subject to all the laws – including deductions from VAT. The filled VAT-R form needs to be delivered to the tax office appropriate to where the company is set up.
How to choose the taxes I have to pay?
The taxpayer has the right to choose the form of tax payment. They have to decide on one of three options:
- Lump sum
- General laws according to the tax scale
- Linear tax
Services in Poland fall under the lump sum tax at 3%. Usually, having your online store be taxed at 3% is the best option, because the tax is low and you have little formalities chained to it. But you must remember that by choosing this form of taxing, you cannot gain additional income, such as ad revenue. If you don’t fall into the lump sum tax bracket, you might consider the general laws.
The general laws are mostly considered by companies that don’t expect to exceed the first step of the scale (85 528 PLN) in a year. In the scale taxation, the tax payee can take advantage of many deductions, such as family deduction and submitting your tax revenue with the spouse. These easements don’t apply to those who chose the linear tax. If your store is being held in the legal partnership, such as Ltd or partnership limited by sales, you become the CIT payer.
Online store without VAT or with VAT – which is better?
In some cases, the seller is obliged to register as a VAT payer. It happens with selling of precious metals and items with excise. Most of the items and services sold, however, do not require the seller to be a VAT payer. Unless you meet certain requirements, you do not need to pay VAT, but it makes sense – it’s always easier to „do the right thing” than keep monitoring if you haven’t exceeded the limits.
Not registering as a VAT payer comes in handy when:
- The company’s cots are null
- The company’s costs are very low
- The sales are targeted to those who can’t deduct VAT
- You sell handiwork, such as jewellery, for which you didn’t need expensive materials, such as precious metals and stones or other registered ones.
Registering as an active VAT payer makes sense when:
- You have high costs of running the business, which exceed the gains from it
- You predict high costs on business development
- Stock you sell comes from outside providers
- You largely sell for other companies
What are the ZUS costs at an online store?
The owner must go to ZUS in case their company is a one-person company, a limited liability company, a limited partnership or a general partnership. The basic costs, if you don’t want the voluntary health care, are now at about 1246,92 PLN per month. With the health care, it amounts to 1316,97 PLN per month. Both those amounts have the Working Fund costs in them. Payments to different kinds of security are taken in the ZUS declaration (on the ZUS DRA form). But if you conduct your online store with multiple persons, you don’t need to pay ZUS obligations – aside from the social and health ones – but you will if you hire employees.
Does having an online store make sense?
In short, it does. As more and more sales and operations are done via the internet, many businesses turn to it to gain customers. People no longer ask their friends for advice – they search the internet. That’s your chance. Create a niche for yourself and open an online store to gain more customers and drive more business to you.