Auto-entrepreneur: I want to get my e-commerce, is that this status is right for me?

We will only study here, if the new auto-entrepreneur status, available since January 1 is for a person shall place their online store .

We assume that the person starts and currently has no status (neither trader, nor artisan ...).

First recall the outline of the status of Auto-entrepreneur applies to an e-merchant:

• Simplified procedures: statement of the status of entrepreneur online in minutes (if you understand the first time all the questions that are asked in every field!).
• In our case of an online store, do not expect to have an annual turnover greater than € 80 000.
• Not wanting to reclaim the VAT.
• The amount of benefits (health insurance, CSG / RDS, pension scheme ...) is 12% of the turnover of your e-commerce .
• If you choose to levy the tax on the income of your shop will be 1% and you pay at the same time as your social security package.
• If you opt for the withholding of income tax, you are exempt from business tax for three years after the creation of e-commerce.
• If the period (quarter, later monthly) you have collected no income, you pay no taxes or payroll taxes.
• You can keep your employment, while self-contractor, unless your current employment contract does not forbid.
• You should just take a book to buy and to sell.

To find all the provisions of the Statute of Auto-entrepreneur, see the official guide .

Step One: Determine whether you can benefit from the withholding tax on income.

You should take home pay business expenses of the family and divide by the number of shares of the home, this number should not exceed € 25 195 for this year (Example: for a married couple: € 50 390 for a married couple with 2 children: € 75 585).

If you are in this case, your tax will be limited to 1% and you will not have to pay professional tax for three years after the creation of e-commerce.

If you are not in this case you will see your sales on your tax return, the administration will impose on it depending on your tax schedule and after applying a discount of 71% .

To simplify our calculations, we assume that you can benefit from the levy.

Case 1:

You buy a € 1000 you made a 30% margin above, you need to sell: 1000/0.7 = € 1,429, your shipping cost to ship this item is € 10.

Your customer will pay a total of € 1439 to buy your product and your sales will be € 1439.

Your charges and taxes will be: 1439 * (12% + 1%) = € 187.01

If your customer pays you by Paypal, you will need to add the board: 1439 * 3.4% + 0.25 = € 49.16

You will be: 1439 - 1000 - 10 - 187.01 - 49.16 = € 192.40, a percentage of profit of 19% that you still have to remove some of your fixed expenses (accommodation ...).

And if you go through a service like eBay, PriceMinister ... to sell your product, it will add more in their commission.

Taking the example of pro ebay for an auction, we charge € 1 insertion and a commission of: (1429-500) * 2.5% + 23.50 = € 46.72

You will therefore:

1439 - 1000 - 10 - 187.01 - 49.16 - € 145.11 = 1-46.72, a percentage of 14.51% profit which you still have to remove some of your fixed expenses (accommodation ...).

Taking now the same example with PriceMinistere, we get a commission:

1.90 + 1% x (1439-500) + 5% x (500-300) 10% x (300-100) + 15% x 100 = € 54.39

You will therefore:

1439 - 1000 - 10 - 187.01 - 49.16 - 54.39 = € 138.44, a percentage of profit of 13.84% that you still have to remove some of your fixed expenses (accommodation ...).

If we take the same product with the same port, but with a margin of 20% original, you still € 43.11 if your customer pays by Paypal, or 4% before removing your fixed expenses. And if you also go through Ebay, you lose money until you have removed your fixed costs, so be aware of your set minimum margin.

Case 2:

If we make the same calculations with a 100 €, € 5 for shipping and a 30% margin, you will remain € 18.36 if your customer pays by Paypal, or 18% before removing your fixed costs . We see that our margin decreased 1% compared to a product of € 1000.

3rd case:

In our case, we will take a product to € 10, € 2.50 for shipping and a 30% margin, you lose € 1.28, if your customer pays by PayPal before removing your fixed expenses.

To keep the same margin level, there must be an initial margin of 33%, you still € 1.82, or 18%, if your customer pays by Paypal and before removing your fixed expenses.

Following the remark of one of our readers, we summarize all this in a small table:

Conclusion:

The status of Auto-entrepreneur, is interesting if you want to test your e-commerce, then direct you to a larger structure:

• The declaration is simplified.
• The risks are reduced.
• Management is simplified and inexpensive (no accounting cost: 1500 to € 3000 per year, no business tax for 3 years).
• If we do not sell, no charges and taxes.
• It pays its taxes and charges on (the next quarter), we know straight away or we have, the rest is available to pay your fixed expenses (accommodation ...), your salary ...

You need good by cons to keep in mind the following:

• You pay your taxes and charges on your bill, not on your receipts, it is necessary that the regulation comes shortly after the establishment of the invoice and prior to payment of charges especially if you use a system like Paypal.
• Unless your product is expensive, the better your initial margin must be large, with a minimum of 30% for it.
• Determine well your total fixed costs, they must be very low for the status of Auto-entrepreneur is interesting.
• The current average basket is composed of several products, you can reduce the impact of the port on the cart with your store.
• Even in the most favorable case: you make a turnover of € 80 000 over the year, we can estimate a profit margin of 18% on average depending on what we've seen before or: 14 € 400, assuming to have very low fixed costs (€ 500), do not expect to get rich with the status of Auto-entrepreneur: You have about € 1158 per month, slightly more than the minimum wage. By cons as additional income or to start your online store, this status appears well suited.

That we believe have given you some ideas if you want to use the Auto-entrepreneur status, of course, you adjust each to your situation.

If you want to get started, go to the form of declaration of the status of entrepreneur online

If you need information, a number Azur 0811 90 00 99 is available to you. You can also use the email address, lautoentrepreneur@apce.com with specialists who will answer your questions within a few days.

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