Can you start an online store without registering with the Chamber of Commerce? Although not mandatory, we recommend it. Find out why here.
An online store without the Chamber of Commerce (KvK)?
The Chamber of Commerce considers you a company when you deliver goods, get paid for them, and engage in this transaction regularly. They also take into account your intentions with the online store, are you planning to make a profit? Then you are considered a company and you need a Chamber of Commerce registration.
Apart from the Chamber of Commerce, you will also have to deal with other – commercial – companies which do not generally work with private individuals. Buying products for the purchase rate from a wholesaler will not be possible without a Chamber of Commerce registration. Also, you will not be able to accept some payment methods such as iDEAL. Do you want to pursue it as your career? Then a Chamber of Commerce registration is a must-have!
When you register your online store at the Chamber of Commerce, you must choose a legal entity. Choosing the business entity that makes the most sense for your online store depends on a number of factors. How much revenue do you expect to achieve on an annual basis? Which products are you going to sell? Are there multiple owners?
Are you embarking on this alone and do you expect less than € 100,000 in revenue per year? Then it’s best to start with a Sole Proprietorship. However, if you are going to sell products such as medicines, you can consider starting a Private Limited Company (LTD) in relation to liability.
Are you not sure? Then ask a tax advisor what the best option is in your case.
Online store and VAT
An online store with a Chamber of Commerce registration also means paying VAT. Don’t be shocked, it’s not as complicated as it seems.
VAT is paid on products that you sell, but for products you have purchased you can reclaim the VAT on your declaration. Often the sales price already includes the VAT percentage, so you know exactly what you have to pay after a certain number of sales. The VAT declaration is made after every quarter. You can do this yourself or have it done by an accountant.
TIP! Use an accounting program such as Moneybird. This way, the information for your VAT return is automatically generated so that you only have to copy the figures to the Tax Authorities. Woosa supports an automatic connection with Moneybird.
Still want to start an online store without registering at the Chamber of Commerce (KvK)?
Are you really not comfortable doing a Chamber of Commerce registration and starting an official company? Then you can consider selling through private platforms such as Marktplaats. In which case, don’t forget to state the “extra” earnings with the annual income tax return!