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Running an online store is a great business idea, but also involves numerous obligations. When entering e-commerce, do not overlook accounting, which you can handle yourself or with an accounting firm. Today we explore this complex subject and what to know before opening an online store.
Setting up an online store with an accountant
Before discussing accounting, consider how to establish this business. If it is your first venture, our accounting firm can guide you through the process and handle formalities.
The legal form of an online store
An online store must be registered like any other business. Polish rules prescribe no particular form, so it may be a sole-trader business or a limited liability company, among others. The exception is a professional partnership, reserved for liberal professions and unavailable to e-commerce operators.
Unregistered activity is another option, but only if monthly revenue does not exceed 75% of the minimum wage applicable that year, which from 1 July 2023 is PLN 3,600 gross.
Tax arrangement
The legal form affects taxation. A tax adviser can help select the best arrangement for your company.
There are three options:
- General taxation, the tax scale: 12% for income up to PLN 120,000 and 32% above PLN 120,000. Any individual conducting business can choose it.
- Flat-rate income tax at 19%: available to individuals conducting business, except those providing services to a former or current employer. It is usually chosen by owners earning above PLN 120,000 who would pay 32% under the scale.
- Lump-sum tax on recorded revenue: unavailable for some activities, including online pharmacies, currency exchanges and car parts stores.
Business address
Some e-commerce businesses operate from home but do not want the private address made public. A virtual office provides a prestigious address, for example in Warsaw, and additional services: receiving and storing documents, scanning and forwarding them, and access to an encrypted client panel.
Online store terms and conditions
Every online store needs terms for electronic services, informing customers of their rights and how the store operates.
Include the type and scope of services and the conditions for providing them electronically. The latter should cover:
- Technical requirements.
- A prohibition on recipients supplying unlawful content.
- The complaints procedure.
- Conditions for concluding and terminating electronic service agreements.
Provide the terms free before the contract is concluded. Although free templates exist online, the document should fit the specific store. Have specialists prepare it, or submit an online template for consultation and any amendments.
The right to withdraw
Online customers may return goods within 14 days without giving a reason. Informing them of this right is essential and materially affects the business. A customer informed before 12 months expire has 14 days to return goods from receiving the information. A customer not informed has 12 months to return goods from the date on which 14 days after concluding the contract expired.
Know your rights too, and tell customers that some goods are excluded from returns, including personalised items and sealed goods unsuitable for return for hygiene or health reasons, such as wet wipes.
Online stores and GDPR
Operating in compliance with the General Data Protection Regulation, GDPR, is another important issue. It applies to all owners processing personal data for business. Online stores may process data only with an appropriate legal basis, such as a contract, informed and voluntary consent, or the controller’s legitimate interest.
GDPR also requires the owner to prepare a privacy policy, security policy, processing activity register, store terms, cookie policy and authorisation to process personal data. An experienced accounting firm can help prepare them.
Accounting that understands your business
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What does e-commerce accounting cover?
Accounting services are tailored to the activity and owner’s needs. However, the common elements discussed above matter from the business setup stage.
Professional e-commerce accounting includes:
- E-commerce support across Europe: expanding abroad requires excellent knowledge of local procedures, documents and tax law. A firm serving e-commerce throughout Europe handles accounting and formalities such as invoice settlements, VAT refunds, payment gateways, cost refunds and shipping.
- Tax support across Europe: covering independent online stores and Allegro, Amazon or eBay sales. Online trade differs between countries, and an accountant helps keep settlements transparent and avoid penalties for tax irregularities.
- Traditional or modern accounting: integration with the accounting firm’s system or use of your own tools.
- An e-commerce-integrated system: full integration covers Amazon, Amazon FDA, Allegro, eBay, OnBuy, Magento and many others. You need not log into each service separately: all data is available in one tool.
- Maximum process automation: our accounting goes beyond invoices and taxes to help the store operate efficiently with minimal handling. The system synchronises inventory with the sales channel, sends email notifications, issues invoices and closes sales when stock reaches zero.
E-commerce accounting in Poland and Europe
Accounting for a Polish online store resembles accounting for traditional businesses. More owners expand abroad, which complicates matters. Fear of differences between countries leads many to postpone foreign sales unnecessarily. Focus on developing your business and leave accounting to TaxCoach specialists. We serve Polish and European businesses, both independent online stores and marketplace sellers.
Interested in this article? Explore our accounting services and see how we can help:
Summary
Online retail requires decisions about legal form, taxation, customer terms and personal data before the first sale. Accounting support then connects invoices, taxes and platform data. Integration and automation can make domestic and cross-border operations easier to manage as the store grows.
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