How to avoid paying VAT ?
- Thread starter rokstar
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he runs an ecommerce and so sell goods as far as i understood. The company which effectively sell/store/send the goods will have to pay the VAT and this not on the profit margin but on the sale price.
Thinking you can invoice from a company outside EU is no more possible as even the big marketplace are already or will soon (depend on which one) report all sales so a matching can be made between sellers, their turnover and if they are effectively paying VAT.
moreover some places like︀ amazon or ebay will collect themselves the VAT :/
Thinking you can invoice from a company outside EU is no more possible as even the big marketplace are already or will soon (depend on which one) report all sales so a matching can be made between sellers, their turnover and if they are effectively paying VAT.
moreover some places like︀ amazon or ebay will collect themselves the VAT :/
I would like to ask something... When you order from Google Ads, they gave invoice︂ with written that "VAT is up to you". End of story, they made invoice with︃ 0% of VAT, and let you pay this if you would like. So if I︄ have an LLC in US can I do like this without caring from when they︅ came from?
The procedure they apply is called "Reverse charge on EU VAT", meaning that whenever there is a B2B cross-border sale happening (Google is located in Ireland) they can basically reverse the duty of VAT obligation towards the receiver︀ of the invoice instead of issuer of invoice.
Technically what you can do is set︁ up a company in an EU country (EU company is way better in terms of︂ payment processor etc.) where you do not expect customers to be located. Then you put︃ in your terms and conditions that your website targets exclusively business customers. By having your︄ customers agree to that you have a chance to apply the reverse charge VAT rule︅ on all your customer and thus put the burden of the VAT obligations on your︆ customer.
Technically what you can do is set︁ up a company in an EU country (EU company is way better in terms of︂ payment processor etc.) where you do not expect customers to be located. Then you put︃ in your terms and conditions that your website targets exclusively business customers. By having your︄ customers agree to that you have a chance to apply the reverse charge VAT rule︅ on all your customer and thus put the burden of the VAT obligations on your︆ customer.
Not an option. You need to get customers VAT registration numbers and put them on each︂ invoice. Even if everyone fakes the number, during an audit the tax authority will notice︃ that these fake numbers on invoices do not match the companies or the payments have︄ not been received from the companies bank accounts.
Right, did not consider that. But afaik the trick does work with digital goods and a company located in Switzerland. But this thread here seems to be about ecommerce.
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