Digital services (Subscription) looking for 0% tax jurisdiction

[Sarahhh]

Hi there!

After 2 weeks reading all of you guys, I need more advise than ever.

My associate and I are gonna launch a new software solution and we are gonna go nomad next year. We are from Spain.

We were thinking about Nevis with a bank account there. Everything is legal. Yet we don't know how to handle de VAT in europe.

If you recommend us Nevis + bank in Nevis + 2checkout, any idea who should we hire to do so?

I'd like to have it done in one month, since we are launching 1st of november!

Any advise is welcome and will answer any question!

Xoxo

 

[John Andrews]

Yet we don't know how to handle de VAT in europe.

Apply for MOSS in some EU country like Ireland.

 

[Sarahhh]

Apply for MOSS in some EU country like Ireland.

Thank you mange! We saw that, but were looking for a worldwide solution, I'm not sure if 2checkout does the job. I've already contacted them. I'll let you guys know!

 

[whattay]

Is your solution B2C or B2B? That will either simplify or complicate your filing/returns.
I suggest checking out Quaderno for VAT /tax reporting. They have some great inputs on digital sales as well.

2checkout may be a lil too expensive. Although I am not sure they help with VAT and duty segregation and reporting.
For offshore banks, please do check liquidity. You want to have a reliable bank. And many do require considerable opening /minimum balance.

Have you checked out Isle of Man?
Also do check Singapore - it is a great location for Digital sales companies. easy setup/low tax + very legitimate.

p.s: am based in Spain
Good luck!!!!

 

[Sarahhh]

Thanks whattay!

It's B2B but it could be B2C too, cause some of our clients might not be running a business..

I'm not so concerned about VAT anymore, I think we will skip doing our "duties" with the TAX administrations in the beginning since there are some ways to do it

Since we might do some emailings to a database we have gathered in the last few months, it's important for us to be in a jurisdiction that provide us anonymity, due to posible lawsuit regarding GDPR laws. That's why we decided Nevis.

So basically we want to set up the company there, but I need someone we can trust in.. and I truly cannot find it!

Any help would be amazing

p.s: am based in Spain

There's nothing like Spain, not even close. Let's hope one day they will make it easier to make business here!

 

[whattay]

ah ok! Nevis makes sense given the cost involved in potential lawsuits.

I used flagtheory's services to setup a company in BVI sometime back. Was pretty good and quick enough.
You should check them out . I also know someone who used Apintertrust and had good feedback.

With BVI, banking is where we had the biggest trouble.. in terms of getting it to work with payment processors. If you have good enough margins, then 2checkout may not be a bad. Recently found out payspacelv, though I suggest researching a bit more.

There's nothing like Spain, not even close. Let's hope one day they will make it easier to make business here!

yup, its a shame :-/

 

[Sarahhh]

Yeah, I'm concerned about the bank account.

Can you tell me again the company you used for your BVI company?

I've always wonder how can it be posible to have a bank account in a country different to where the company is based. For example, company based in Belize and bank in Malta. There is no restrictions to this situation?

Thank you for your answers! At least I'm getting some insights!

Have a nice day!

 

[whattay]

Yea sure, for some reason the name was removed - its flag theory. We still manage our BVI company through them.

You can have your bank account in a different country, shouldnt be a problem.
Issue is when it comes to processing payments. Most payment processors /merchant banks decline to provide services to an offshore setup. Even when they do, they will charge an arm and a leg (4-5% fee , 10-15% reserve for 180 days ). Also many of the offshore banks require a minimum opening deposit/balance in the 5-6 figure range.

An alternate solution is to find an offshore bank that provides the gateway and merchant services. But again , fees are gonna be higher than normal (considering paypal as normal - although there are providers who give a better rate).

Am looking for a solution as well for my ecommerce store and have had a tough time finding something that checks all boxes. :-/

 

[Cryptobabaji]

did you have good experience with payspacelv? i dont find them latvia website?