VAT for selling digital services online (to individuals) - country setup?

[georgio]

Hello,

If anyone has experience with selling subscriptions and how he charges VAT on them? We plan to use Stripe for payments (can use something else if you propose something more applicable).

My thinking was to start the company in the UK, where we will not charge VAT to customers if we are below the VAT threshold. (Currently I have a UK-registered company with VAT number that does B2B sales).

What's the best way to deal with VAT and Stripe subscriptions for a B2C software?

Thanks

 

[lory]

If you sell to companies you don't have to charge VAT if you sell to individuals you will have to charge VAT.

What you may do is to setup a company somewhere offshore, most often they give a s**t about you charge VAT or not, no one will ever ask you why you don't do.

Know a lot of people that do it 😉

 

[georgio]

lory said:
If you sell to companies you don't have to charge VAT if you sell to individuals you will have to charge VAT.

What you may do is to setup a company somewhere offshore, most often they give a s**t about you charge VAT or not, no one will ever ask you why you don't do.

Know a lot of people that do it 😉
Click to expand...

By offshore, you mean outside of EU? 🙂

 

[EliasIT]

I would not worry that much if you setup a offshore company, means you setup in a tax haven say Belize, Seychelles, BVI, Panama or even Cyprus, most of the authorities there will give a s... for charging VAT or not.

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If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[user9823671]

EliasIT said:
I would not worry that much if you setup a offshore company, means you setup in a tax haven say Belize, Seychelles, BVI, Panama or even Cyprus, most of the authorities there will give a s... for charging VAT or not.
Click to expand...

But then they won't be able to use stripe - nor likely any other online processor (except maybe Cyprus).

Considering it sounds like OP is from UK, although Belize / Seychelles won't care, the UK very much will and they will know about the country as the company will be resident in UK for tax purposes.

 

[EliasIT]

stripe will not be able to tell you if you have to charge VAT - you just need to have a company in a jurisdiction compliant by Stripe.

Toggle signature
If money is your hope for independence you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience, and ability!
My personal favorite thread posted in the Mentor Group. Group of investment companies to avoid licensing.

 

[tomwis]

georgio said:
Hello,

If anyone has experience with selling subscriptions and how he charges VAT on them? We plan to use Stripe for payments (can use something else if you propose something more applicable).

My thinking was to start the company in the UK, where we will not charge VAT to customers if we are below the VAT threshold. (Currently I have a UK-registered company with VAT number that does B2B sales).

What's the best way to deal with VAT and Stripe subscriptions for a B2C software?

Thanks
Click to expand...

LLC in Delaware/Wyoming/New Mexico?