Selling Online

dwk012

Hi

I do not have a registered company but I have a .com domain name registered and intend to sell simple products like plain jumpers/sweaters online. They are not brand names, just plain wool etc.
The payments will be handled via paypal.

Is this legal? Do I need to tell Revenue if I earn money from this?
And if I do not tell them how are they to know?

I do not want to break any laws but I also want to have minimal contact with Revenue and keep my dealings as private as possible.

Can someone tell me about their personal experiences please?

Thanks
D

mneylon

is it legal? Yes

Should you tell revenue? Yes

fibber

If you are going to sell online people are going to look for contact details, terms and conditions and delivery information before they purchase- so it's probably best to be a registered entity before starting to trade anyway.

jimmmy

You should sell on ebay first to gain experience / build up credibility / feedback. People would be more inclined to buy off someone on ebay who has say 80 or 800 successful / positive customers + no negative feedback, than to pay money to some new + previously unknown website.

dwk012

fibber wrote: »

If you are going to sell online people are going to look for contact details, terms and conditions and delivery information before they purchase- so it's probably best to be a registered entity before starting to trade anyway.

Thanks for the replies.
The reason I do not want to register a company is that I have done this before and it cost a lot of money to set up and even more to close!

This is a small site and setting up a registered company seems like overkill.
Also If I use paypal, they are trusted so I'm hoping it should help.

What do I have to do in relation to Revenue? Make some declaration when doing taxes?

D

dwk012

jimmmy wrote: »

You should sell on ebay first to gain experience / build up credibility / feedback. People would be more inclined to buy off someone on ebay who has say 80 or 800 successful / positive customers + no negative feedback, than to pay money to some new + previously unknown website.

Thats a very good idea and I will do this in parallel to my new site.

same questions applies, do revenue need to know about ebay sales also?

DoMyBooks

dwk012 wrote: »

Thanks for the replies.
The reason I do not want to register a company is that I have done this before and it cost a lot of money to set up and even more to close!

This is a small site and setting up a registered company seems like overkill.
Also If I use paypal, they are trusted so I'm hoping it should help.

What do I have to do in relation to Revenue? Make some declaration when doing taxes?

D

Your dead right. Its costs a lot less to operate as a sole trader in terms of compliance and simplicity.

mneylon

dwk012 wrote: »

Thats a very good idea and I will do this in parallel to my new site.

same questions applies, do revenue need to know about ebay sales also?

Ebay report sellers to revenue

The basic line seems to be that if you sell a couple of items, like you might sell and old phone or a few DVDs or whatever then you'd be considered "casual" and nobody is going to really care. However once you start selling "professionally" they will have to declare you.

clashduv27

Would someone be able to tell me when you import goods from China via DHL, and then pay the vat and duty to DHL..which they have paid to the revenue when the goods entered the country...does DHL send records to the revenue including your name and the goods you imported? Or does revenue take a record of all this when the goods come in? Even if they come through a courier like DHL?

Regards,

gappers

Blacknight wrote: »

Ebay report sellers to revenue

The basic line seems to be that if you sell a couple of items, like you might sell and old phone or a few DVDs or whatever then you'd be considered "casual" and nobody is going to really care. However once you start selling "professionally" they will have to declare you.

But is there a monthly limit or you think they report everyone!?

Kersh

To sell goods definitely requires registering the business one way or the other.

Then the decision to register for vat or not.

Its not simple, but its not rocket science either. And there are obligations regarding taxes and the like.

gappers

Kersh wrote: »

To sell goods definitely requires registering the business one way or the other.

Then the decision to register for vat or not.

Its not simple, but its not rocket science either. And there are obligations regarding taxes and the like.

I believe there are many people selling online without a registered business.

Kersh

How are they paying tax, either on sales or income?

antoinolachtnai

If you live in Ireland and make income from trading, whether online, offline or anywhere else, you need to declare it on an income tax return. It does not matter how little you trade. You have to declare this income and pay tax on it. There may be some people who do not have to pay tax because of their tax credits, but in general, if you have another job, then your income from trading will almost certainly be liable to some tax.

Whether you have registered for tax is really neither here nor there; what is really important is that you pay the tax that is due on your income.

There is some information at http://www.revenue.ie/en/business/running/registering-tax.html

If you are selling stuff you owned anyway, that is a different matter. That is not necessarily regarded as income. An example of this is if you trade in or sell an old car for less than you bought it for. You don't pay tax on the money you get because it isn't income. It's the proceeds from the sale of an asset. (However, if you sell the item for more than you bought it for, however, you are likely to be liable to capital gains tax.)

Summary is, if you think you might have to pay tax, you probably do. You really have to get advice on this.

There is no such thing as 'privacy' from the revenue. They have the right to come in and look at the transactions you are doing, and because of the nature of online commerce, it will all be there for them to audit, in black and white.

If you want to minimize your contact with revenue, best thing is to pay the tax that is due, as it becomes due.

gappers

I reckon some people have online stores / ebay shops etc but do not have a registered business as you only need a name registered with cro to get a .ie domain name.

I presume they can just declare that extra income in their personal taxes.
It that normal practice do you think, especially if they earn small amounts.

oterra

dwk012 wrote: »

Hi

I do not have a registered company but I have a .com domain name registered and intend to sell simple products like plain jumpers/sweaters online. They are not brand names, just plain wool etc.
The payments will be handled via paypal.

Is this legal? Do I need to tell Revenue if I earn money from this?
And if I do not tell them how are they to know?

I do not want to break any laws but I also want to have minimal contact with Revenue and keep my dealings as private as possible.

Can someone tell me about their personal experiences please?

Thanks
D

I also sell online and yes I did register with the Revenue for peace of mind. Buyers need to thrust you and your site, so contact details etc are essential if you expect sales!

gappers

oterra wrote: »

I also sell online and yes I did register with the Revenue for peace of mind. Buyers need to thrust you and your site, so contact details etc are essential if you expect sales!

Hi, I also sell online via a website and sometimes on ebay.
I do not have a registered company and my contact details online only consist of an email address which many people seem fine with.
I did however tell revenue of my additional income but I do not think I needed to do this until next October. Did you do something similar or you actually registered a business?

oterra

gappers wrote: »

Hi, I also sell online via a website and sometimes on ebay.
I do not have a registered company and my contact details online only consist of an email address which many people seem fine with.
I did however tell revenue of my additional income but I do not think I needed to do this until next October. Did you do something similar or you actually registered a business?

I registered as a sole trader as I needed the .ie domain. I did tell revenue of extra income, but as you say I didn't need to do this til next year. I submitted a preliminary tax just so to get it out of the way. I originally had an email address on the site but I did get customers asking of a business address. I think it gave them a bit more confidence as there are a lot of fraudsters out there.

gappers

oterra wrote: »

I registered as a sole trader as I needed the .ie domain. I did tell revenue of extra income, but as you say I didn't need to do this til next year. I submitted a preliminary tax just so to get it out of the way. I originally had an email address on the site but I did get customers asking of a business address. I think it gave them a bit more confidence as there are a lot of fraudsters out there.

I dont think you need to be registered to get a .ie, I believe you only need to register a company name with the CRO and when they send you a company number you can get a .ie with that.

do you find being a sole trader an advantage when it comes to taxation?
What if you are a seasonal seller so you might sell for 3 months of the year only, would have still have to filling documents every month as a sole-trader.