Payment Gateway in Europe and Paraguayan Residency

[superban]

Hello,

I have a paraguayan residence, but I don't have a company. I sell digital‌ products online, mainly in Italy. Very legal and low risk business.

So far I've been‍ using stripe, but registered as italian because in Paraguay is not available Stripe. Now they⁠ ask me to update my Vat number or ID fiscal number in order to keep⁤ using Stripe because the italian tax autorithy asks to comply with digital invoicing.

I have⁣ two options here:

1) Give them what they ask, but in this way I risk⁢ that the italian government will make me pay taxes even if I don't live there.︀
2) Change payment processor, find a reliable one that accept my paraguayan residence and allowing︁ me to connect a european bank to it or EMI, but not paraguayan.

What do︂ you suggest in this case? Any suggestions about a new payment processor? I also have︃ an italian paypal account, but I'm afraid they will ask soon the same thing if︄ they see a consistent flow of money.

Thank you!

 

[Soterus]

Assuming you sell via Digistore or a similar platform, a possible VAT problem does not‌ exist for you since Digistore automatically deducts VAT according to the country of your client.‍
You might consider opening a US LLC, this means you do not pay taxes in⁠ the US as long as you do not have US clients. Neither you will in⁤ Paraguay because it is a foreign source.

 

[JohnnyDoe]

Give them your Italian codice fiscale and they will be happy. No consequences in Italy.‌

 

[Mssquirrel]

I don't know much about this but people doing that kind of business from Paraguay set︅ up an LLC in US, maybe you should check it out. If you have no︆ income from the US and you are non-resident you are not liable for tax there︇

 

[superban]

Thank you but⁣ I don't see the point of opening a company. Being in Paraguay is a foreign⁢ source anyway, I don't have costumers there and I don't need money to enter in︀ a paraguayan bank account.

 

[JohnLocke]

You could setup a company for the only reason that it would be much easier‌ for you to find a payment processor for your business activity.

The suggested US LLC‍ is and option and will open the doors to payment processors in the US, if⁠ setup correctly.

Alternative would be to setup a European company for instant a cheap UK⁤ LTD which will allow you to apply for payment processing in Europe, there are lot's⁣ of valid and good payment processors around.

 

[superban]

Hello @JohnnyDoe,

I just got an email from "agenzia delle‍ entrate" to the email I used to register my activity on Stripe, so I suppose⁠ that Stripe is communicating with them and now they want me to pay taxes on⁤ the amounts I'm receiving.

What should I do? Close my stripe account and use something⁣ else? Reject all the "raccomandata" I receive to my italian address?

thank you

m.

 

[JohnnyDoe]

You never received that email.
Italian address? Did you register yourself in the AIRE,⁢ right?