Do I need a business number to create an online store?
Do I need a business number to create an online store? The short answer…
Yes, probably. If your online store is run with commercial intent, a business number is a legal requirement. But what does that mean exactly for you as a new online store owner?
What is a business number, and when is it necessary?
A business number (Central Business Register) is your business's unique identification number. It's a requirement when you run a business with commercial intent. This means you have the purpose of making money from your activity, and it's systematic and regular.
When is an activity "commercial"?
Your online store is considered commercial if it meets criteria such as:
- You have a clear intention to achieve a profit.
- The activity is regular and systematic (not just selling individual items).
- Your business is set up professionally (e.g., with a real online store, marketing, purchase of goods for resale).
- It's your primary or a significant source of income.
Online store as hobby: The exception to the rule
There's an exception where you don't need a business number: if your online store is run exclusively as a hobby activity.
When is an online store a hobby?
A hobby activity is typically characterized by:
- It's not primarily aimed at achieving a profit, but is more of a leisure interest.
- Revenue is low and irregular.
- You sell, e.g., surplus materials from your hobby, or a few individual, unique crafts without intention to make a living from it.
- Any profit is modest and typically used on the hobby itself.
Be aware that the line between hobby and business can be fluid. If your online store begins to generate solid profit, or if you actively invest in it with a view to growth, it's probably no longer a hobby in the tax authorities' eyes.
Even as a hobby, you still need to report income to the tax authorities as "other personal income".
Advantages and disadvantages of business number
Here's a quick overview of the typical advantages and disadvantages of having a business number:
| Advantages of business number | Disadvantages of business number |
|---|---|
| Professional appearance to customers and suppliers. | More administration and bookkeeping. |
| Possibility to deduct expenses (purchase of goods, marketing, etc.). | Requirement for VAT registration if revenue exceeds threshold (varies by country). |
| Access to business solutions (bank accounts, insurance, loans). | You become subject to tax rules for businesses (e.g., corporate tax). |
| Easier to separate personal and business finances. | Publication of certain business information. |
Start your online store easily – with or without business number
Regardless of whether you start as a hobby or immediately get a business number, GoShup.com is built to make it easy for you to sell online. You can start building your online store without having a business number in place, and then register it when you're ready to go live or if your activity develops from hobby to business.
Our platform handles the technical part so you can focus on your products. When you sign up with GoShup.com, you get access to a user-friendly platform and an integrated payment solution that makes it simple to accept payments from your customers.
Are you unsure?
If you're unsure whether your online store requires a business number, it's always a good idea to contact the tax authorities or an accountant. It's better to be on the safe side and ensure you comply with the rules from the start.