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Handling VAT - EU client paying to a Seychelles company

Seelife

Offshore Agent
Jan 27, 2013
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Hi Folks,


we have set up a Seychelles company and have our bank account set up to receive payments for over seas business etc.


We have clients in the EU that will be paying invoices.


How do we organize VAT. Does the client have to pay, or do we need to bill or refund VAT?


I understand that the company is tax exempt, but is it tax exempt.


There is a Tax exempt certificate that we can obtain - but the main question is how do we handle VAT when we invoice the client who normally pays VAT in the EU.


Thanks
 
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Reactions: taxraider
You can't invoice VAT to or from a Seychelles company that simple. So the invoice should not contain VAT!
 
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Reactions: SasxInc
Also, posting in the proper forum would be much appreciated!
 
Only companies located in Europe have to pay VAT. Say your company is registered in the Seychelles, Belize or other offshore jurisidction then it don't have to charge any VAT.


Say you want to buy from a European company as offshore company, then you have to pay VAT. It is a it always has been, unless your company is registered for VAT and it is located in a jurisdiction that requires you to register for the same, you don't have to charge VAT.
 
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I have seen USA and Canada companies charging VAT to foreign companies. For instant if you are using 2co and you can't type in a EU VAT number they charge you VAT amount of the applicable rate!
 
If you are selling products\services, the obvious thing is the the buyer have to pay the vat tax including with the cost of product\service.
This rule is applicable to most of the countries
Okay, buyer will have to pay tax but say, you are selling product in UK, customer payed including tax and your company registered in Seychelles, so whom will you pay tax? It'll go in your pocket, right? As Seychelles is a tax haven country. Am i right?
 
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Reactions: Jack Dui
Okay, buyer will have to pay tax but say, you are selling product in UK, customer payed including tax and your company registered in Seychelles, so whom will you pay tax? It'll go in your pocket, right? As Seychelles is a tax haven country. Am i right?
Yes, this the another secret benefit having an offshore company in a tax haven jurisdiction. As you no need to pay tax, you could do 2 things, selling cheaper than other competitors OR doing more profit :)
 

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