UAE Company / Digital Software - Paying taxes To EU, Canada and others..

[butanebo]

Hi, we have a company based in UAE. We are selling digital software as subscription platform to customers all around the world including EU, Canda, Australia and others. We are using BlueSnap as payment processing company.

However until now we were not paying any taxes to the EU countries or any others. I understand that it is required by law to pay to the country of the buyer current TAX rate.

My questions is: What happens if we won't be paying these taxes to these countries? I was looking for some accounting software or something similar but all seems like it would need enormous amount of time to handle everything + we would need manually to send taxes to these countries anyway each quartal. I hope someone will have experiences with such issues.

I know there is no income tax in UAE, but I just want to get in troubles with our offshore company..

Thank you for your time!

 

[blizz]

butanebo said:
However until now we were not paying any taxes to the EU countries or any others. I understand that it is required by law to pay to the country of the buyer current TAX rate.
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What taxes do you think have to be paid to the EU countries? as far as I know there is no tax to be paid where the BUYER is but only by the UBO and where he lives?

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[negon]

Have you consulted an International tax advisor to help you out with this question? I would find a local one in UAE to help me if I was you.

 

[butanebo]

blizz said:
What taxes do you think have to be paid to the EU countries? as far as I know there is no tax to be paid where the BUYER is but only by the UBO and where he lives?
Click to expand...

You can see how the EU taxes work here . In short - no matter where your company is based at, in case your customers are based in EU, you need to pay taxes to these countries via MOSS every quartal.

negon said:
Have you consulted an International tax advisor to help you out with this question? I would find a local one in UAE to help me if I was you.
Click to expand...

I am working on it atm. I wanted to get some input from you guys first though.. Thank you!

 

[blizz]

butanebo said:
You can see how the EU taxes work here . In short - no matter where your company is based at, in case your customers are based in EU, you need to pay taxes to these countries via MOSS every quartal.
Click to expand...

My friend you are confusing TAX and VAT even though we can agree that the greedy governments just evented a new name for the same then VAT is not the same as corporate tax! it's two different things.

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[butanebo]

You are right 😉 In that case the same question applies to VAT. My apologies.