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Tax issues in Virtual office?

J

jauser

Active Member
Jan 15, 2017
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#1
Hi there

I resume my question:

One non eu company (Switzerland) could to have a website selling goods and invoicing them from Swiss company adding in his website terms his Company legal Virtual Office address hired in Germany without pay any tax or get any legal issue with German tax office?

This virtual office in Germany could to give problems from Germany tax office?

The planing would be purchase with Swiss company to Austrian suppliers paying them directly the vat to avoid high Swiss customs fees, send goods from Austria to German customers and pay Corp tax in Switzerland

Regards
 
#2
Typically a Virtual Office is not sufficient in order to convience the tax authorities that the control and management of the company is in Switzerland or Germany etc.

You want to setup something with nominees and even with a small office somewhere in order to proof the above is in Germany.
 
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#3
At the moment I have no interest in hiring Nominées, company will be on my names in Switzerland, invoicing will be from Switzerland, corporate tax will be paid in Switzerland. I´m not resident in Germany or Switzerland. The only relationship with Germany will be the sales to end customers (shipments from Austria) and the virtual office I want to show in our website that will be a German legal address

A guy said me that could be a tax issue about "vat moss" due that my company will pay vat directly to Austrian suppliers and Germany require to pay this vat in his country but;

1. Really Germany will contact to Switzerland to check that the vat is paid to German suppliers (instead of Austria) eliminating the need to pay it from Vat moss register? Should be search and buy to German suppliers to pay directly the vat to them?
Note: I dont want bureaucracies or aditional vat moss management

2. How will I prove to third parties that I have a legal virtual address or PO Box in Germany if it is not registered in Germany Companies house? Just with a contract signed with Clevermai or mail boxes?

Yes, this planing is hard but it is required to work with swiss company
 
#6
Well, it depends on where you live. Normally you get taxed from any income, regardless if it is a company or personal income but worldwide. So if you can't proof the company not to be directly controled by you then you will be personally taxed on all profits this company make!
 
#7
Hi @auric, thank you for your info but i am not refering about my personal profits in my residence country, I am referring about THE COMPANY TAX ISSUES FOR SELLING IN OTHER COUNTRY different from where my company was registered. Example:

** I live in Cezh Republic and i will pay all my personal incoming in my country residence from all my world companies (forgive it, i have not doubt about this)

a) My Swiss company sell and invoicing to end customers in Germany paying company corporate tax in Switzerland
b) My Swiss company buy to Austrian suppliers paying to them the Austrian VAT and goods are shipped from Austria to Germany to end customers
c) Although all sales to German customers are billed from Switzerland, MY WEBSITE TERMS IS SHOWING A LEGAL VIRTUAL GERMAN ADDRESS

1) Could contact Germany Tax inspector to Switzerland Tax inspector to require that my Swiss company pay the corporate tax in Germany BECAUSE MY WEBISTE TERMS SHOW A LEGAL VIRTUAL GERMAN ADDRESS ?
2) Could contact Germany Tax inspector to Switzerland Tax office to ask about where I am paying the Vat (Austrian suppliers) and start a prosecution BECAUSE my Swiss company is not respecting the Germany distance selling VAT thresholds (17500€ per year) althoug my company is not from EU ?
 
#8
@jauser You'll be okay. What you're doing is called dropshipping and is totally fine.
You'll pay tax in Switzerland through your switzerland corporation.

Yes, you can put a virtual office address in germany on your website, as long as the billing is CLEARLY from your switzerland company, and you won't have any problems with German tax office. Just call that address "Mailing Address".

This way if they ask anything (which they won't) you just have a virtual address/mailbox for german clients to be able to reach out to you more easily. This virtual office/address/mailbox is not enough to make you liable for taxes in germany.
 
#10
@blizz Yes of course. OP has a swiss company, managed and controlled from Czech republic since that's where he lives and makes the decisions.

If the swiss company is paying it's due taxes in Switzerland, and he's paying his taxes back home as well in Czech Republic, there's no way simply getting a "mailing address" in germany will expose him to taxes there, as the Swiss company is CLEARLY managed and controlled from Czech Republic.
 
#14
auric said:
I just say that it is well possible. Not sure if they will but it's possible they want to have some clarification.
Click to expand...

Well, he's paying taxes in switzerland as well as in Czech. So if either tax offices ask for clarification "I have a switzerland company. I run it from czech. I pay my taxes both in switzerland and in czech as you can see". Tax offices will confirm, and he's in the clear! :)
 
#15
ultrarekt said:
Well, he's paying taxes in switzerland as well as in Czech. So if either tax offices ask for clarification "I have a switzerland company. I run it from czech. I pay my taxes both in switzerland and in czech as you can see". Tax offices will confirm, and he's in the clear! :)
Click to expand...

Hi @ultrarekt
Sorry but I'm not paying yet tax in czech, i will pay only tax in czech when I bring profits to my personal name from all my companies, it could be at the end of year or within 5 years.
A advisor said me that worst issue could be the german VAT because I will pay directly to Austrian suppliers and Germany require to pay in his country on online sales over 17500€ per year.

So, the question is; Could really Germany tax office contact a non-EU company in his german virtual office or tax office of his country (Switzerland) to inquire if my company sales was over 17500€ per year or to know where my company is paying the VAT from germany online sales?
 
#16
@jauser I am unfamiliar with Czech tax law, but if that's how it works in your country (only pay tax when you bring profits to your personal name) then I still believe simply having a "mailing address" in Germany is not enough to make German tax applicable to you. You are only putting up a mailbox address and saying "hey, if anyone needs to send us a letter, we have this cool little mailbox in germany".

If you set up a REAL office in germany, have an employee there, etc. then there is business being done FROM germany, and in this case, yes VAT would apply. And I don't believe a EU country can go after a non-EU company for not charging VAT on EU sales. You are not EU, they have no business with you nor jurisdiction over you, you have no assets that can be seized in germany, no bank account in germany, etc. Just a poor little mailbox to receive mail once a year haha
 
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