Unpaid vat/tax on sales

[spartin]

So my friend(located in Asia) just told me he's been processing payments in france for his digital products business for a couple months now with payment processing/banking registered on the nominee(Latvian) of a UK ltd he bought off one of the sellers on the forum.

He isn't on the director's list, has processed €300k so far, and hasn't registered or paid any VAT on it, plus there's the topic of tax dues accrued by nominee.

I've asked him to stop processing on it, but is there a chance EU comes knocking for like 60k unpaid vat?

Last edited: Sep 2, 2024

 

[12345]

Digital products is better than physical product but I don't know. Maybe in the future‌ you can ask your customer to choose the country of their location upon checkout and‍ the default country set up is 0% vat country like Gibraltar. I know game websites⁠ like g2a, kinguin used to do it like this

 

[spartin]

So you're saying vat is owed to the country the customers choose at checkout and not⁤ their billing address or their card country?

 

[Wellington]

New process‍ came through a few years ago

Basically you pay / collect VAT for the EU⁠ if you sell into it over a certain amount

 

[daniels27]

Absolutely not.‍ What he is saying is that you can subtly suggest the costomers to chose Gibraltar⁠ as their billing address to avoid VAT. But you better read this first:
https://taxation-customs.ec.europa....information_microbusinesses_euvat_2015_en.pdf

Yes. But... You pay for the EU but charge the relevant rate for each country.︌

 

[Houdini]

Well, I can imagine what company your friend has bought and in that case he‌ could care less about all of it. If there should be a request to pay‍ VAT he can just let the company go.

 

[daniels27]

A shithole⁠ selling fakes and meds?

 

[spartin]

That's what⁠ i told him, his issue is the nominee has his email, and he thinks if⁤ it's given to the tax authority when they come asking him for vat and tax,⁣ they'll try to track him. Paranoid?

 

[JackAlabama]

of course⁠ will the nominee not pay any tax due. This is normal and needs to be⁤ expected.
I mean who in their right mind would wanna cover eventual tax payments for⁣ some measly monthly pay of a few 100 bucks?

 

[12345]

here is an example from incogniton website (digital service)
It's set up to UAE by‌ default despite my IP being from european country. Many websites use this trick

 

[aniglo22]

Did you try it in a Incognito tab ?⁠ Because the site uses woocommerce (woocomerce saves your cart data and choices).

 

[Houdini]

I wouldn't⁠ bother, if it is a gmail or other widely used e-mail you could care less.⁤ Which also should bring to attention to everyone reading this. Always use unique gmail addresses⁣ only for this purpose so your cyber walking can't be tracked this way at least.⁢

 

[spartin]

Isn't it usually simpler to track if its⁤ a gmail address as compared to others? I was recently reading a Google transparency report⁣ and they give up information for around 7,000 accounts each month just to France.

 

[Houdini]

better is proton⁠ etc. email address alone don't make it, was just a hint.

 

[mytoofood]

you mean you want to hide your IP when creating and sending the e-mail right‌ ?