Cyprus VAT and invoices!!!!

[trisstann]

Hi everyone, i m quite new here but i have to say that i learn enough from this forum already. I ll write my problem and i hope someone knows the solution!!


I have a site with monthly subscriptions and i want an offshore company (with business bank account). As i read here for having a merchant account (which is important for me) must make a company in EU.


So i choose to make a company in Cyprus with bank account in Cyprus.


Questions:


1. Should i add VAT 17% in my invoices? (i guess yes). This is not a problem with my business. My problem is that i will have many invoices (about 1000 invoices x $3/ per month). So i understand that i have to pay a fortune to the company accountant!!! So trying to avoid having VAT i m asking:


2. If the company has two directors (one local and one foreigner) is possible to register as no local business (not paying VAT and 0% taxes).


3. If the company has two directors the local with utility documents, office adress etc, can apply for merchant account? (most sites when you apply for a merchant account ask for director's utility bills and business address and business bank account in same country)


Thanks everyone!!!!

 

[JohnLocke]

If the company is registered for VAT you need to charge VAT otherwise not.


There are options to avoid VAT on your invoices, maybe a Seychelles or Belize company would fit better into your plans.

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[Under]

Hi tristann,


I would suggest to look for professional help on this one though you should consider following:


1. Company that provides online services by place of permanent establishment in EU must be registered for VAT if reaches certain threshold (depending on the jurisdiction)


2. If your model is B2C - as per the majority of the jurisdiction's VAT rules the place of supply is the location of the supplier from where he provides the services


3. Under certain circumstances multiple registrations are needed for the online services as the vat (for example broadcast) is payable in the country where the customer is (if not registered and not business)


On the other hand if you handle your transactions on behalf of an offshore company as disclosed or not disclosed agent you can :


Reduce the base on which you accrue VAT (only commission) and retain the bigger part of the amount tax free in offshore jurisdiction.


There are many other opportunities and even avoid any VAT but if you incur any business expenses with VAT it is advisable to be VAT registered


you can check here for regulations on the topic 🙂 on eu commission site - refer to e-commerce