To avoid penalties when calculating taxes on income earned in the market, sellers must take into account the entire amount earned. Anastasia Morgunova, co-founder and product director of the online accounting company My Business, told socialbites.ca.
According to Morgunova, the tax is paid on the entire amount obtained from the sale of goods on the market, without taking into account commissions.
“For example, if a marketplace received 100 thousand rubles as a result of selling a seller’s goods and transferred 70 thousand rubles to him, excluding commissions and other expenses, taxes must be calculated exactly on 100 thousand rubles,” the expert said.
He noted that this also applies to the simplified taxation system “Income minus expenses.”
“Revenue must indicate the full amount the marketplace receives from end buyers. And only then in the column “Expenses” indicate commissions and other payments to the site corresponding to the list of expenses for the simplified tax system. “Considering the amount received from the site as income is a serious mistake,” Morgunova warned.
Another mistake sellers make is accounting for expenses in advance, the tax expert noted.
“For example, the site deducted some commission from the seller in advance. However, he has not yet issued the title deed for this amount and has not written it in the agency’s report. “Without this, the seller cannot account for these expenses,” he said.
The expert warned that in both cases, sellers will face fines depending on the results of the audit by the tax office, as this will be considered as under-declaration of income.
“The seller will have to pay a fine of 20 to 40 percent of the amount of unpaid tax,” Morgunova said.
It concluded that if the violation was “systemic” the seller would face criminal liability.
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