How to sell cheaper with Offshore company?

[duran]

Hi,


Wondering how it is possible to reduce my prices on the website and make same profit? I read that a offshore company can help doing so but I simply don't understand how, any help is appreciated😢

 

[JohnLocke]

If the company don't have to pay tax and have expenses in regards to accounting,‌ annual reporting etc. then it should be possible to reduce your costs to the consumer..‍ also if it is a Offshore company then you don't have to charge VAT which⁠ means you can sell your services and products at least 15% cheaper than your competitors⁤ doing business with a EU company.

 

[wosniak]

Indeed makes sense... so with a Seychelles corp I wouldn't need to charge VAT if‌ a customer buys any product from us right?

 

[JohnLocke]

Yes thats correct, actually a Seychelles company can't be registered for VAT so far.

 

[Belarious]

So will the payment processor allow to charge for goods and services if I sell‌ to EU without charging VAT? If so, I can see a huge price reductions for‍ my products.

 

[JohnLocke]

Normally the payment processor don't care about that⁠ part! It is your business they should just offer the payment processing!

 

[bitotan]

You say the payment processor don't care, why does some forums say that they have‌ been forced to charge VAT by the processor?

 

[SysOp]

Admin says normally, if some claim to have been "forced" by the payment processor to charge VAT it may be so, but personally I would change PSP then.

 

[unknown]

Admin says normally, if some claim to have been "forced" by the payment processor to‌ charge VAT it may be so, but personally I would change PSP then.

 

[bitotan]

If you don't have to charge any VAT nor pay VAT and TAX you can‌ actually sell your services and products cheaper :thumbsUp:

 

[JohnLocke]

Second that...‍ this is how many increase profits.

 

[Moh1]

Correct, low‍ costs on operating the company means low costs to the customer.

 

[bitotan]

It will also be possible to keep my pricing where it is and just earn‌ more on per item, so I need less sales.

 

[JohnLocke]

Thats an additional way to look at it. :thumbsUp:

 

[stuntbiker]

Useful information...I made some calculation and you folks are right indeed it is possible to‌ sell cheaper and earn more money.

 

[stuntbiker]

True information, I checked this last year and we have rised profits since then with‌ 30%.

 

[JohnLocke]

Thats not too bad. Where did you incorporate your‍ company?

 

[duran]

Thank you all for the replies and interest to my post 😀 I realize that that‌ I have been looking at is legit and how many are doing it.. thanks again.‍