Best country for supplement e-commerce

[ecomdude]

Hi there,

I recently started an ecom in Bulgaria. It's minimal but already profitable, which I am happy with the results so far.
Unfortunately, the market is really small, and I'd be interested in selling in a bigger country where people have more money to spend.

But Europe seems to be a tax hell. While Germany is good to sell to, their 40% tax rate is absolutely crazy.
I have the possibility to open a GMBH in Switzerland, but it's a small country. If I want to sell supplements to Germany, I either have to set up a German company or pay import fees twice (first Switzerland then Germany)

I wish I could use my Bulgarian company to sell to Germany, but first the shipping times are long and also Klarna (major payment processor) is not available for Bulgarian companies.

The other 2 possibilities I am considering are the US and UK, but the competition is tougher.
But I also heard that one can get big credit in the US with a proper bank business account.

Hope my question isn't too vague, but which country would be best in terms of costs like taxes and maintenance?

Thanks in advance

 

[12345]

VAT tax is determined based on customer location
income tax is usually determined based on place business is ran from. Selling to germans doesn't necessarily mean you pay german income tax.
If you are resident and citizen of Bulgaria then I believe it's best to run your business with bulgarian company, foreign company won't help you in terms of taxation, it could actually make your costs of running business higher. In case you need a company in certain jurisdiction for payment processor or other purpose You can open another company owned by bulgarian one for example US LLC if it's needed for your business in USA.
For the shipping time in Germany and other countries you could try looking for fullfilment services for example in Germany. You send them in bulk (which is cheap within EU and then they ship out to customers) Keep in mind if your goods are sent from Germany warehouse you would need to apply for german VAT number. Currently it takes up to 2 months so best to initiate it asap

 

[ActionMan]

also Klarna (major payment processor) is not available for Bulgarian companies.

Klarna Sold their PSP division a while ago!

 

[MichaelUniq]

You can consider Hong Kong jurisdiction: company registration, bank account, and payment service provider.