Paying to offshore company without bank account

[ekman]

Lets say I have EU based LTD and I want to invoice some money to offshore company, to Belize for example.

If the offshore do not have bank account, what would be the ways to transfer the money and pay the invoice? I guess cash invoice should be fine, but thats not very convenient.

If I cannot open bank account for the offshore on the time, can I just account them as liabilities (money owed) before end of fiscal year and recude that from profits?

 

[Sols]

ekman said:
Lets say I have EU based LTD and I want to invoice some money to offshore company, to Belize for example.
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Hopefully you or your accountant are familiar with, among other things, BEPS regulations.

ekman said:
If the offshore do not have bank account, what would be the ways to transfer the money and pay the invoice? I guess cash invoice should be fine, but thats not very convenient.
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Pay in crypto?

ekman said:
If I cannot open bank account for the offshore on the time, can I just account them as liabilities (money owed) before end of fiscal year and recude that from profits?
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Maybe. It depends on the nature and size of the payment, and the relationship between the two companies.

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This is the probably the answer to your question.

 

[ekman]

Sols said:
Hopefully you or your accountant are familiar with, among other things, BEPS regulations.
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I'm reselling digital product owned by offshore and leaving the cut and service fee in the EU company. The digital product and service fee is stated in the invoices. I also resell similar digital products from other companies. I hope that should do the trick.

Sols said:
Pay in crypto?
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I was looking for Coinbase gateway for offshore company. I'm bit worried about will the crypto payment pass the audit and how these transactions should be accounted.

 

[Sols]

ekman said:
I'm reselling digital product owned by offshore and leaving the cut and service fee in the EU company. The digital product and service fee is stated in the invoices. I also resell similar digital products from other companies. I hope that should do the trick.
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Double check with an accountant. If you own or benefit from the Belize company, what you're doing may not be a valid deduction.

ekman said:
I was looking for Coinbase gateway for offshore company. I'm bit worried about will the crypto payment pass the audit and how these transactions should be accounted.
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Crypto payments are usually fine, so long as the invoices also stipulate the fiat equivalent (provided the exchange rate is a fair market rate at that time). However, not all auditors and accountants understand it. Check with them first.

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This is the probably the answer to your question.