E-Commerce company structure for minimal tax

[uplana]

The cross boarder what "modernised" structure in Europe sucks and makes it a complete different way to do business online.

 

[dirtyharry]

What is it you want to say with that @uplana ?

 

[daniels27]

E-commerce you say, dont forget to comply with Europes draconian OSS scheme.
https://vat-one-stop-shop.ec.europa.eu/one-stop-shop_enPer 2025 there are some changes again.

It is like sales tax in the US. You busy charge it to the customer and good. Everybody selling there pays is, so why bother?

The cross boarder what "modernised" structure in Europe sucks and makes it a complete different way to do business online.

Yes, but let's be honest let them charge their residents sales tax and VAT. They are all mature people that can leave it they do not want to pay. It course they don't. But not because they are lazy but because they like the subsidies that their VAT pays for.

OSS is good, you only register once and pay once. Much less overhead than having to register in all countries.

Of course not paying would be most interesting but I guess this isn't an option anyway. They want it, they pay it, we collect it for them.

 

[GPT]

I get that it’s comparable to the U.S. sales tax. It’s more a big pain in the a*s as it limits a lot of people on their entrepreneurial starts as it adds more complexity for them.

If you are a seasoned e-commerce entrepreneur then it’s just a nuisance which changes the conversation after implementation into price optimization to maximize profits.

 

[daniels27]

I get that it’s comparable to the U.S. sales tax. It’s more a big pain in the a*s as it limits a lot of people on their entrepreneurial starts as it adds more complexity for them.

If you are a seasoned e-commerce entrepreneur then it’s just a nuisance which changes the conversation after implementation into price optimization to maximize profits.

Yes. I totally agree. It is a nuisance. But mainly in terms of adminstration rather than having to collect taxes for the consumers. A global OSS with streamlined rates and exemptions and a reverse charge regime for companies would eliminate most if the nuisance.

 

[dirtyharry]

Singapore offshore company could work. Then you need to fly under the radar or keep travelling in SEA.

More permanent alternatives would be any of the SEA countries like Idonesia, Taiwan, etc. with about 3% personal income if done properly. If you know which country you prefer, check with a local lawyer doing expats. They normally know the holes.

okay, Singapore offshore company is very expensive to setup and maintain as far as I remember?

 

[daniels27]

okay, Singapore offshore company is very expensive to setup and maintain as far as I remember?

Yes. Will definitely cost you $1200 per year if you find have a local director. I really cannot recommend to do it for fun. You can easily live a couple of months of that money in Armenia.
https://swiftly.sg/#pricing

 

[uplana]

I get that it’s comparable to the U.S. sales tax. It’s more a big pain in the a*s as it limits a lot of people on their entrepreneurial starts as it adds more complexity for them.

You're absolutely right, it feels like it’s becoming harder and harder to manage all the paperwork and accounting involved in running a small business. It’s overwhelming how much they burden small business owners.