Useful Frequently Asked Questions


Why should open your business?

Having completed your studies or any training depending on the profession you want to pursue, you are able to offer your services to the general public. Once the right profession is found, and if it is necessary, it is the right time to start the activity at the competent Tax Office to which you belong. So now you will be able to issue Receipts and Invoices for the services you provide. In short, as a freelancer, you enjoy independence by freely defining the operation of your business and your professional prospects, while also presenting a legal income from your activity.

What form of business should I choose?

The main difference between the different types of companies is whether it is a sole proprietorship, represented by the entrepreneur himself with his personal VAT number, or whether it is a company, ie a legal entity, where a new legal entity is established under a new VAT number. The company form is necessary in case of cooperation of two or more entrepreneurs, while the sole proprietorship when we act for ourselves.

What is the process of starting an activity?

The process of starting an activity requires in most cases three actions. Firstly, the registration in the Chamber of your industry. Secondly, the registration for the insurance number of EFKA and thirdly, the file submitting with the necessary documents to the Registry department at the Tax Office to which you belong. If it is a company, it must be preceded by the establishment of an Articles of Association with a lawyer and also the steps listed above for each partner separately.

What are the basic obligations?

Once the activity has started, it is important to know our basic obligations to the tax administration. Thus, a freelancer must keep a Revenue-Expenditure Book, submit a VAT return (if required) at the end of each calendar quarter, submit annual tax returns for the company and himself as a natural person, as well as any other type of statement that is likely to apply depending on the profession.

What charges will I have as a professional?

Regarding the insurance part, a professional is charged with his monthly insurance contributions to EFKA (220 € the lowest scale, 136 € in the first five years). As for the tax, the main charge is the annual fee (€ 650, exempt for the first five years), and on the other hand, the income tax resulting from the submission of the tax return, provided that income from the business activity is presented in the previous year. In addition, the entrepreneur is charged with the payment of VAT, In addition, the entrepreneur is charged with the payment of VAT, if required depending on the profession and if the amount of VAT on sales is greater than the VAT on purchases / expenses. In some cases, various fees and withholding taxes may apply.

When a freelancer can be taxed as an employee?

These two categories have the same obligations and charges against the tax administration with the only difference that the professional with one or two clients is taxed as an employee, ie is exempt from tax until the tax-free limit. For this to happen, three basic conditions must be met. Firstly, to declare his residence as the seat for the exercise of his activity, secondly, not to work at the same time as an employee and thirdly, if he provides his services to more than three employers, he must receive at least 75% of his annual salaries only from one.

What are myDATA platform and e-books?

The issued Invoices and Proofs of sale of goods and services will be forwarded by each company to the AADE myDATA platform. Thus, with the contribution of the specialized consultant/accountant, the e-books will be kept in real-time in the electronic system of AADE. The obligation to transfer the data of the income documents starts from October 1, 2020. In addition, the electronic transfer of the qualifications of the documents received by all the companies (expenses) issued from this date onwards begins.