Best way to set up company to charge customers Tax Free?

[daniels27]

There are enough companies like Paddle, Digital River. You can check their⁠ fees. 3% on top of processor fees is no issue.

Also, the armlength principle is⁤ not a problem in this case as there are no employees and no substance involved.⁣ You can just get a tax ruling and it will be even lower than 1%.⁢

You should read @JustAnotherNomad above.

 

[Don]

Indeed "payment processor" companies entitled to 1% profits⁤ are quite standard.

 

[JustAnotherNomad]

To be fair, I don't know anything⁤ about Dutch CV's specifically.
I know someone who has used them in the past -⁣ they were registering it with an address outside NL and according to them, that was⁢ enough for the Dutch tax authority to basically ignore the whole thing. But from what︀ I have understood, it was very difficult to get banking for that.

In any case,︁ partnerships in general are usually tax transparent and only pay local tax on local income︂ (=income associated with a local PE). So income of a partnership does not automatically become︃ subject to tax, they are transparent. That's why US LLCs etc. are so popular.
And they definitely don't change the tax residency status of the partners (or do you become︄ a US tax resident when you buy Tesla shares?).

 

[EliasIT]

We run UK Ltd's as payment processors for several businesses and never faced any troubles‌ like what is mentioned here, some of them run for more than 7 years buy‍ now without anyone questioning the setup!

 

[JustAnotherNomad]

Are they wholly owned by the company they do the processing for? Or do you‌ use one company that does all the payment processing for your different companies?

 

[uplana]

same thing here, read⁠ about it in the guide admin posted in mento group years back.

The companies are⁤ wholly owned by the company they process cards for. You can't mix it if you⁣ want to avoid troubles with the tax office.

 

[EliasIT]

yes