Handling VAT - EU client paying to a Seychelles company

[Seelife]

Hi Folks,


we have set up a Seychelles company and have our bank account set up to receive payments for over seas business etc.


We have clients in the EU that will be paying invoices.


How do we organize VAT. Does the client have to pay, or do we need to bill or refund VAT?


I understand that the company is tax exempt, but is it tax exempt.


There is a Tax exempt certificate that we can obtain - but the main question is how do we handle VAT when we invoice the client who normally pays VAT in the EU.


Thanks

 

[JohnLocke]

You can't invoice VAT to or from a Seychelles company that simple. So the invoice should not contain VAT!

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[JohnLocke]

Also, posting in the proper forum would be much appreciated!

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[Seelife]

Admin said:
Also, posting in the proper forum would be much appreciated!
Click to expand...

My apologies, I was uncertain of the best group to post in.


Thanks for the feedback above.

 

[cosmo]

Seems much has changed since then and all companies world wide have to register for VAT or at least charge VAT. Excemptions are when the company is not located in Europe. So Seychelles, Belize, Hong Kong, Panama and so forth are excempted from charging VAT.

 

[taxraider]

Only companies located in Europe have to pay VAT. Say your company is registered in the Seychelles, Belize or other offshore jurisidction then it don't have to charge any VAT.


Say you want to buy from a European company as offshore company, then you have to pay VAT. It is a it always has been, unless your company is registered for VAT and it is located in a jurisdiction that requires you to register for the same, you don't have to charge VAT.

 

[Propeller]

I have seen USA and Canada companies charging VAT to foreign companies. For instant if you are using 2co and you can't type in a EU VAT number they charge you VAT amount of the applicable rate!

 

[wonderwilly]

It's defiantly not an option for a Seychelles company I asked my agent who declined the option to apply for VAT!

 

[footi gupt]

If you are selling products\services, the obvious thing is the the buyer have to pay the vat tax including with the cost of product\service.
This rule is applicable to most of the countries

 

[Jack Dui]

In this circumstance, you should send invoice excluding VAT(customer will be happy) or keep in pocket the vat amount🙂

 

[SasxInc]

footi gupt said:
If you are selling products\services, the obvious thing is the the buyer have to pay the vat tax including with the cost of product\service.
This rule is applicable to most of the countries
Click to expand...

Okay, buyer will have to pay tax but say, you are selling product in UK, customer payed including tax and your company registered in Seychelles, so whom will you pay tax? It'll go in your pocket, right? As Seychelles is a tax haven country. Am i right?

 

[deadpool]

SasxInc said:
Okay, buyer will have to pay tax but say, you are selling product in UK, customer payed including tax and your company registered in Seychelles, so whom will you pay tax? It'll go in your pocket, right? As Seychelles is a tax haven country. Am i right?
Click to expand...

It sounds good to be true and logically feels right too. Hope some one clarify this quickly.

 

[Jack Dui]

SasxInc said:
Okay, buyer will have to pay tax but say, you are selling product in UK, customer payed including tax and your company registered in Seychelles, so whom will you pay tax? It'll go in your pocket, right? As Seychelles is a tax haven country. Am i right?
Click to expand...

Yes, this the another secret benefit having an offshore company in a tax haven jurisdiction. As you no need to pay tax, you could do 2 things, selling cheaper than other competitors OR doing more profit 🙂

 

[RamsayB]

Jack Dui said:
Yes, this the another secret benefit having an offshore company in a tax haven jurisdiction. As you no need to pay tax, you could do 2 things, selling cheaper than other competitors OR doing more profit 🙂
Click to expand...

That was surprisingly new for me. If you sell cheaper, wouldn't you will earn lesser than your competitors?