Our valued sponsor

Sword and Shield
Unique Payment

How to avoid VAT in EU from the 1st 2024

#43
MiltonStone said:
That would be the best option.

Alternative, setup a no KYC company and give a **** about the VAT.
Click to expand...
What do you mean exactly? Your email doesn't work

marzio said:
Do you mean for example Stripe UK or a payment processor different than Stripe because it has offices in EU?
Click to expand...
I believe Stirpe UK it's same as Stripe US, they must do report somehow and adat to new rules.
 
#45
delarue said:
A no KYC company ? And the bank ? The best option is to work with a merchant gateway which doesn’t have office in Europe therefore no communication of financial data.
Click to expand...
Very true, it is going to be interesting to follow this in 2 years and how the European payment processors will implement it.
 
#47
marzio said:
Ok and then what?

There are plenty of companies in Delaware that bill EU customers without charging VAT so even if the bank will report the cross border transaction it's unlikely that something will ever happen.
Click to expand...

I guess it all depends on turnover and where the shareholders/directors are based.

If its an EU citizen best believe they will take him/her down :D
 
#48
Marzio said:
Do you mean for example Stripe UK or a payment processor different than Stripe because it has offices in EU?
Click to expand...
Stripes a US Company, listed on the US Stock market i think... falls under US Jurisdiction, thus tax evasion through it even for a EU company is a big no no lol not unless you want to be indicted to the SDNY.

Just pay the VAT or relocate yourself and your business and not engage in the EU.
 
#49
wellington said:
Stripes a US Company, listed on the US Stock market i think... falls under US Jurisdiction, thus tax evasion through it even for a EU company is a big no no lol not unless you want to be indicted to the SDNY.

Just pay the VAT or relocate yourself and your business and not engage in the EU.
Click to expand...
bro you have no clue... There is no VAT if I pay EU or UAE company via Stripe UK
 
#51
I think this will mostly work for large companies selling services/goods online like Facebook etc. who bill a lot of clients.
Because if some no name company from USA would bill some clients in EU without VAT. I don't believe something would happen
 
  • Like
Reactions: 5K1PP3R and blastah
#52
Platforms which solely allow processing of payments related to the “Relevant Activities” (see below), allow users to list/advertise a Relevant Activity or redirect/transfer users to a platform, are excluded from the reporting obligations (e.g. PayPal, Stripe, Facebook marketplace).

Relevant Activities​

The Relevant Activities triggering a reporting obligation are:

  • the rental of immovable property, both residential and commercial, as well as any other immovable property, and parking spaces (e.g. Airbnb, Booking.com);
  • personal services involving time- or task-based work whether performed alone or not, carried out independently or not, at the request of a user, and which were facilitated by a platform (e.g. Uber);
  • the sale of goods, i.e. any tangible property (e.g. eBay, Vinted); and
  • the rental of any mode of transport (e.g. Turo, Click&Boat).
In order to be reportable, the said activities will need to be carried out for a consideration in any form (net of any withholding by the digital platform operator) paid/credited to the seller and which the digital platform operator can verify.

Source

So i guess if you are doing B2C outside those activities, and the Business is paying you is from US with using stripe it will be ok for now . That being said only low amounts and non EU banks..

But i am sure they will soon adapt those aswell and its safer to pay those taxes right away.
 
#53
PanTrace said:
Platforms which solely allow processing of payments related to the “Relevant Activities” (see below), allow users to list/advertise a Relevant Activity or redirect/transfer users to a platform, are excluded from the reporting obligations (e.g. PayPal, Stripe, Facebook marketplace).

Relevant Activities​

The Relevant Activities triggering a reporting obligation are:

  • the rental of immovable property, both residential and commercial, as well as any other immovable property, and parking spaces (e.g. Airbnb, Booking.com);
  • personal services involving time- or task-based work whether performed alone or not, carried out independently or not, at the request of a user, and which were facilitated by a platform (e.g. Uber);
  • the sale of goods, i.e. any tangible property (e.g. eBay, Vinted); and
  • the rental of any mode of transport (e.g. Turo, Click&Boat).
In order to be reportable, the said activities will need to be carried out for a consideration in any form (net of any withholding by the digital platform operator) paid/credited to the seller and which the digital platform operator can verify.

Source

So i guess if you are doing B2C outside those activities, and the Business is paying you is from US with using stripe it will be ok for now . That being said only low amounts and non EU banks..

But i am sure they will soon adapt those aswell and its safer to pay those taxes right away.
Click to expand...
PanTrace said:
Platforms which solely allow processing of payments related to the “Relevant Activities” (see below), allow users to list/advertise a Relevant Activity or redirect/transfer users to a platform, are excluded from the reporting obligations (e.g. PayPal, Stripe, Facebook marketplace).

Relevant Activities​

The Relevant Activities triggering a reporting obligation are:

  • the rental of immovable property, both residential and commercial, as well as any other immovable property, and parking spaces (e.g. Airbnb, Booking.com);
  • personal services involving time- or task-based work whether performed alone or not, carried out independently or not, at the request of a user, and which were facilitated by a platform (e.g. Uber);
  • the sale of goods, i.e. any tangible property (e.g. eBay, Vinted); and
  • the rental of any mode of transport (e.g. Turo, Click&Boat).
In order to be reportable, the said activities will need to be carried out for a consideration in any form (net of any withholding by the digital platform operator) paid/credited to the seller and which the digital platform operator can verify.

Source

So i guess if you are doing B2C outside those activities, and the Business is paying you is from US with using stripe it will be ok for now . That being said only low amounts and non EU banks..

But i am sure they will soon adapt those aswell and its safer to pay those taxes right away.
Click to expand...

You are talking about another law/reporting.
 
#54
delarue said:
Do you guys see any loophole to avoid to pay VAT ?
Click to expand...
Create a second company from a privacy jurisdiction, this company offers load balancers to e-commerce companies. The load balancer is in reality a reverse proxy server. Have the load balancer route high-VAT IPs to low-VAT IPs. Refresh the proxies on the load balancer as often as possible. If authorities complain, blame the third party incorporated outside of EU / US.

Preferably, engineer it like a Wordpress plug-in, market it to other companies, make sure more companies use it. Create a crypto that offers a reward for exposing your IP to the balancer, connect it to the network of the balancer, now you start routing customers IPs through the node operators across the entire globe, route it more, encrypt it, annoy authorities lacking IT people to investigate.

Now you use your earnings to start a VPN company, you start routing connections from the load-balancer through the VPN making it appear as if people are using a VPN. The only available countries on the VPN are low-VAT jurisdictions, include it for free on every order, now customers are evading the VAT themselves. Win?
 
Last edited:
#56
sorry i mixed DA7 with this new directive.

so in summary, all big payment processors like (stripe, hyperwallet etc) will report to EU tax authorities transactions made through them. First report will be by January 2024 (for calender year 2023)
Or do you think when the Payer is outside US and you get payed to a LLC business account (but EU member) it will be nonetheless reported because the intended recipient is EU member?
Also it states that: "A threshold of 25 payment transactions to the same payee in the course of a calender quarter has been proposed". Meaning if you get 10 or 12 monthly payouts it wont be included ?

Most of those payment processors have their headquarters in US, but offices also in EU.

Thanks for clarification .
 
#57
Is it also automatically reported when a company receives payments from a Payment getaway registered in the same country of the company's registration?
Note: This payment getaway would be a EU payment institution registered in same country of company
 
#59
wellington said:
Average Income Tax Europe = 40.24%
Average VAT Tax Europe = 21%
Average Property Tax Europe = 2.5%

= 63.74% taxes.
Click to expand...
and don't forget to add the inflation rate - which is very individual however for most will be two digits and better not to mention against BTC...

wellington said:
Why on earth do you live in Europe?
Click to expand...
because it's challenging practically and emotionally after decades of living in Europe - active people make a lot of ties, not mentioning families and personal responsibilities - I wouldn't be that quick at judging
 
You must log in or register to reply here.
The Kingdom Bank

Forum Announcement

Latest Threads

Top Bottom
Back