Best way to avoid EU vat

[Alexander]

Hey there!

Lets say I incorporate a Cyprus and sell online services to EU customers and generates 4-5k euro per month. How can I avoid paying VAT?

Is it worth incorporating in HK to avoid that? Will it be worth when the audit comes?

Thank you! 🙂

 

[Internationaloff]

Hello.
Kind of online services?

 

[JohnLocke]

You may simply incorporate the company non resident and avoid the VAT otherwise you can‌ use any other offshore company, for instant, Seychelles or Belize! Actually many will say you‍ have to pay VAT anyway, however, so far I have not paid VAT for 9⁠ years with one of the Cyprus entities incorporated for a e-business. I didn't even hear⁤ anything from any VAT / Tax office.

 

[Brutus]

You are living⁣ in Cyprus?

 

[JohnLocke]

No I don't live there, it's just one of our projects that is located there.‌

 

[Alexander]

Its software license, paid monthly.‌ Sorry for not providing very specific data, I would like to be anonymous. Thanks for‍ understanding. 🙂

Thank you︀ for the quick answer.

Let me know if I got it right. So if I︁ am EU citizen with company in Cyprus as non-resident, I don't have to pay VAT︂ from my sales?

 

[negon]

You can't register a non resident company for VAT so how⁠ will they force you to do so 😉

 

[Brutus]

That's quite a discovery. Is that true‍ only for Cyprus or that works EU wide or even worldwide?