Does a non resident company need to be registered for VAT?

[marcel]

I wonder if a non resident company is required to register for VAT if it trade's alot outside of Cyprus but in Europe?

 

[JohnLocke]

You can't register a non resident company in Cyprus for VAT! So it can't under no circumstance charge VAT.

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[Yitzhak]

What if, say, you're running a website, and you get orders from European residents? Wouldn't you be obligated to charge VAT then?

 

[JohnLocke]

Again, VAT is only for European companies and a Belize, Seychelles, Panama, or any other company outside of the EU does not have to charge VAT. Those entities can't even be registered for VAT so, let's say they charge VAT to which office should they pay the VAT? :angel:

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[Yitzhak]

Yeah, but isn't Cyprus part of the EU?

 

[JohnLocke]

Sorry, should have read the thread again:embarassed: A non resident Cyprus company can't be registered for VAT neither because it is not resident of Cyprus and for that reasons don't be long to the jurisdiction in Cyprus for VAT registration.

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[stephenbestel]

For onshore company, you would be required to pay VAT for the country where you company has been incorporated only.


For offshore, you would be required to pay VAT to the country where you are citizen. But this is only if you declare your company with the local tax authority (Which I don't think you should do if its an offshore). However, you need to be very cautious and with FATCA coming up (If your are US Citizen), IRS will know that you hold an offshore bank account.

 

[Yitzhak]

My read of the stuff surrounding FACTA is that it only applies to personal accounts. Corporate accounts should still be out of scope. As it stand now, you would still need to fill out the treasury form on a personal foreign account you set up though. There's really no way to get away from the IRS with a personal account... unless you're playing games with your legal name and using a second passport.

 

[stephenbestel]

Hi Yitzhak,


FATCA applies to corporate account too. Please find below extract from the website of IRS:


In addition, FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest.


FATCA will tremendously kill part of offshore business 🙁

 

[JohnLocke]

Great element of advise in regards to FATCA, but please stay on topic:bt:

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[marcel]

There is no VAT to be paid for Cyprus non resident companies I learned. I'm not from the USA and for that reason FATCA don't apply to me.

 

[trisstann]

Lets say that i have an offshore cyprus company with local director and local share holders, secretary, office etc.... And i have a site which incorporate both in EU and US. Do i have to add VAT in my services?