EU citizen + trading

[noentry]

Hi!

I have read a lot through the forum, there are tons of smart people here. But there are tons of threads with crypto and forex trading. I have a little bit different situation but I am sure someone will be able to recommend something.

I am based in Lithuania, EU and the business I am doing is trading. I am mostly buying stuff from Finland and selling it to other EU countries, most of the goods stay in Lithuania. I physically import them using another company. Now of course I am looking for ways to reduce my tax bill, the problem is I normally buy the goods lets say for 10000EUR and sell them for 40000EUR, I have to pay VAT and tons of other taxes, the margin is really high. This tax bill makes my business uncompetitive, because lots of other companies avoid taxes, cheat in various ways.

I am looking for a way to buy these goods from Finland using another company and then somehow selling them to my Lithuanian company for much higher price. I need a cheap tax country to pay the main taxes.

Dubai looked like something that would work, but I am not sure about VAT. The goods that I buy they cant get 0 VAT for export so if I sell them back from non EU company I might need to add VAT on top.

I have had some invoices from other companies in my hands that do the same work and those invoices were from Cyprus.

You guys, any ideas?? Lithuania is one of the highest taxed countries in the world...

 

[12345]

I don't think you have any option to avoid VAT. If you sell physical goods in Lithuania you are obliged to pay lithuanian VAT rate even if your company is from UAE, China or any other place

 

[noentry]

I will not be able to avoid VAT, but if I sell the goods back to Lithuanian company for lets say 39500EUR and then resell to the end user for 40000EUR, I will only pay VAT from 500EUR margin. So what am I tryng to find out is how to increase the price of goods without paying too much in taxes.

 

[TheTrader]

Finally found someone in the same line of business that I am in, among all these people talking about crypto. How many years have you been in this field?

 

[12345]

I will not be able to avoid VAT, but if I sell the goods back to Lithuanian company for lets say 39500EUR and then resell to the end user for 40000EUR, I will only pay VAT from 500EUR margin. So what am I tryng to find out is how to increase the price of goods without paying too much in taxes.

But then the intermediate company will need to pay that VAT so there is no difference. I think there is no away around this if your end user is in the EU, I sell physical goods too I thought about it and this is what I concluded but im not an expert. You can try to optimize income tax but for vat there is no way

 

[noentry]

Finally found someone in the same line of business that I am in, among all these people talking about crypto. How many years have you been in this field?

I did notice that most of the traders are crypto/forex! I have been trading goods for 7 years and either I got greedy or I just do not believe in the tax system of my country. I pay a lot and get next to nothing. Which country do you trade in?

 

[noentry]

But then the intermediate company will need to pay that VAT so there is no difference. I think there is no away around this if your end user is in the EU, I sell physical goods too I thought about it and this is what I concluded but im not an expert. You can try to optimize income tax but for vat there is no way

Michal, thanks for the answer. So probably the only other way is having a lot of expenses, because in my case I pay VAT from the margin. Some countries, like Bulgaria, they hate when you have lots of expenses and especially in abroad. But I was wondering about Cyprus? Do they even care about anything if you do the work out from Cyprus?

Lithuania hates expenses too, they check everything. After I got a call from tax authorities here I just cant get over the thought of moving my business somewhere else because physically I do not see the goods, they come here and they are immediately bought by another company. More or less I could operate without a lithuanian company.