New company for 0% VAT in EU?

[GPT]

A nominee will not avoid prosecution. The moment you deliberately commit tax fraud the‍ nominees will sing like birds.

It used to work. Nowadays with all the CDD banks come up with⁠ its highly unlikely you would be able to even get a bankaccount opened. So yes,⁤ perhaps on paper. In practice, not anymore.

 

[satoshim]

The VAT is a tax the consumer needs to pay. Some jurisdictions don’t require you‌ to collect VAT. The only thing EU can do is control consumers and force them‍ to pay VAT…

Hardly any software company I use charges VAT.

This is propaganda. The guy didn’t operate outside of the EU

 

[Martin Everson]

What part is propaganda?

 

[uplana]

VAT fraud is investigated if it's going into the millions. If you keep it low‌ there is no one in Europe that will come after you.

 

[csp dubai]

you want to do vat fraud , is the only way , h just in‌ proper way , take a nominee just be sure he is not coming back to‍ you, otherwise ther is no way to legally avoid vat

 

[johndunham]

Not getting caught is not the same as legally avoiding VAT.

 

[JohnnyDoe]

uplana said:
VAT fraud is investigated if it's going into the millions. If you keep it low there is no one in Europe that will come after you.
Click to expand...

VAT is the only one thing guaranteed to get you in troubles. Governments have nasty reactions when you touch their main source of income.

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[satoshim]

can you elaborate?

 

[Martin Everson]

That's simply not true. VAT fraud is taken very seriously and they will and⁠ do come after you and jail people for way less than a million. Just google⁤ it.

 

[Sols]

Absolutely. Just a few months ago, I saw a⁠ Scandinavian tax authority go after a seller in another EU country for missing VAT on⁤ cross-border ecommerce. IIRC, they had just filed late but the thinly veiled threats were crystal⁣ clear and the tax authority would probably have handed it over to law enforcement. And⁢ would've won.

 

[GPT]

Miss the monthly vies reports for three or four times and they will be⁣ hot on your tail and fine the living s**t out of you.

Lots of countries⁢ have gotten rid of vat thresholds or drastically lowered them. Vat is the worst tax︀ to avoid/evade of all of them as the system is close to waterproof.

 

[koohl]

do with a Cyprus⁢ company, they will never come after you if you don't charge VAT and file dormant︀ end year!

 

[GPT]

Not true anymore. View‍ reports is every month. Miss it and they will be hot on your tail.

 

[wonderfulboy]

not if you don't live in Cyprus‍ and amounts are small.

 

[GPT]

It has nothing to do with Cyprus. You live a decade ago. Your company‍ will not last a year anymore.

Ok they might not go after you personally although⁠ don’t show up in any vies (ie EU) country because that data is shared.

Vat returns indeed it wasn’t too bad. The problem is the vies reports. Also Cyprus is⁤ on top of those. Practical experience here.

 

[wonderfulboy]

as you‍ say, OK

 

[RachelNg]

To be honest,⁢ a company can have more than one bank account, it’s fine to open a new︀ account when one account is closed. So no pressure about it in this case unless︁ the reason your bank account is closed relates to a crime, for example, a money-laundering︂ case ( I just mean what if). If the account is closed due to the︃ changes in the bank’s policies, there are chances to open a new account at another︄ bank.

By the way, opening a new company as your business strategy, that’s fine. For︅ most offshore countries, there is no VAT if the goods/services are not sold inside that︆ country or to its residents. For Hong Kong, there is no VAT.

Therefore, these are︇ the options for a new company. It’s based on your need to choose between an︈ offshore country or Hong Kong. Hong Kong is more reputable as a financial hub, but︉ the annual maintenance requirements are complicated and costly

 

[wonderfulboy]

No, but you need to mark invoice reverse charge on VAT.