Since I first read this article a few years ago, which was published by the admin, I have been going back and forth wondering whether the setup described there was actually sustainable.
Some time later, now exactly two years ago, I registered a standard UK LTD, which is 100% owned by my Swedish operating company. We obtained payment processing through PayPal, eMerchantService, and Stripe for the UK company and have processed all card transactions through it. We have neither charged VAT nor prepared any special accounting for it.
The cash flow is transferred 1:1 to the parent company in Sweden, and no one has questioned this setup. We also do not pay taxes or other fees in the UK, only in Sweden.
According to the accountants we have spoken with, this is a legitimate setup. They don't know anything about the VAT aspect, as we haven't mentioned it, since that is not relevant to the Swedish accountant. Every year, they receive a signed financial statement from the UK agent, and that keeps them satisfied in Sweden.
I see that many have questioned this setup, and some are making assumptions that I can clearly tell are incorrect. That's why I created this thread. There's not much to debate””this works, and I am confident that the same approach could be implemented with a parent company in Cyprus, Switzerland, or other European countries.
It should be noted that Scandinavian tax authorities are very strict and not to be taken lightly, so it's crucial to do everything correctly from the start.
Some time later, now exactly two years ago, I registered a standard UK LTD, which is 100% owned by my Swedish operating company. We obtained payment processing through PayPal, eMerchantService, and Stripe for the UK company and have processed all card transactions through it. We have neither charged VAT nor prepared any special accounting for it.
The cash flow is transferred 1:1 to the parent company in Sweden, and no one has questioned this setup. We also do not pay taxes or other fees in the UK, only in Sweden.
According to the accountants we have spoken with, this is a legitimate setup. They don't know anything about the VAT aspect, as we haven't mentioned it, since that is not relevant to the Swedish accountant. Every year, they receive a signed financial statement from the UK agent, and that keeps them satisfied in Sweden.
I see that many have questioned this setup, and some are making assumptions that I can clearly tell are incorrect. That's why I created this thread. There's not much to debate””this works, and I am confident that the same approach could be implemented with a parent company in Cyprus, Switzerland, or other European countries.
It should be noted that Scandinavian tax authorities are very strict and not to be taken lightly, so it's crucial to do everything correctly from the start.
