Have you decided to sell your collected or grown goods? It’s not easy – this is when you need to pay your taxes

by times news cr

2024-04-12 08:06:36

Trade in self-collected forest products

Residents’ income for the sale of self-collected forest products (mushrooms, berries, nuts, medicinal herbs), not exceeding 3 thousand. EUR per calendar year, tax-free. Income above the specified amount is taxed at 15 percent. personal income tax rate.

A business license or a certificate of individual activity is also not required for trade in self-collected forest products.

However, those who sell not only their own produce, but also those purchased from others, must purchase a trading business certificate or register individual trading activities according to the certificate in order to sell the purchased products.

Trade in self-grown agricultural products

Residents’ income from the sale of self-grown agricultural products is not taxed, if the residents receiving this income are not required to register and are not registered as value added tax payers. Therefore, residents selling their own produce should check whether they have any tax obligations related to Value Added Tax (VAT).

When must residents register as VAT payers?

Residents engaged in economic activity must register as value added tax payers in two cases: when the amount of income from economic activity per year (last 12 months) exceeds 45 thousand. euros (when calculating the income limit of 45,000 euros, the total income of a resident is taken for goods sold on the territory of the country (vegetables, fruits, berries grown by oneself and others, and services provided). Residents engaged in agricultural or other activities must also register as VAT payers. purchases goods or fixed assets from VAT payers or other taxable persons who are required to register as VAT payers from other member states of the European Union and the value of all purchased goods or fixed assets (excluding VAT paid or payable in another country) exceeds 14 thousand euros during a calendar year .

2024-04-12 08:06:36

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