New company for 0% VAT in EU?

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GPT

Active Member
They might, but you can use nominees and avoid the problem
A nominee will not avoid prosecution. The moment you deliberately commit tax fraud the nominees will sing like birds.

It is 100% illegal but it works.
It used to work. Nowadays with all the CDD banks come up with its highly unlikely you would be able to even get a bankaccount opened. So yes, perhaps on paper. In practice, not anymore.
 

satoshim

New member
The VAT is a tax the consumer needs to pay. Some jurisdictions don’t require you to collect VAT. The only thing EU can do is control consumers and force them to pay VAT…

Hardly any software company I use charges VAT.

Yes they will. Extradition for VAT fraud happens. Just google it.
This is propaganda. The guy didn’t operate outside of the EU
 

uplana

Corporate Services
Mentor Group Gold
VAT fraud is investigated if it's going into the millions. If you keep it low there is no one in Europe that will come after you.
 

csp dubai

Active Member
you want to do vat fraud , is the only way , h just in proper way , take a nominee just be sure he is not coming back to you, otherwise ther is no way to legally avoid vat
 

JohnnyDoe

Mentor Group Gold
VAT fraud is investigated if it's going into the millions. If you keep it low there is no one in Europe that will come after you.
VAT is the only one thing guaranteed to get you in troubles. Governments have nasty reactions when you touch their main source of income.
 

Sols

Staff member
Mentor Group Gold
That's simply not true. VAT fraud is taken very seriously and they will and do come after you and jail people for way less than a million. Just google it.
Absolutely. Just a few months ago, I saw a Scandinavian tax authority go after a seller in another EU country for missing VAT on cross-border ecommerce. IIRC, they had just filed late but the thinly veiled threats were crystal clear and the tax authority would probably have handed it over to law enforcement. And would've won.
 

GPT

Active Member
Absolutely. Just a few months ago, I saw a Scandinavian tax authority go after a seller in another EU country for missing VAT on cross-border ecommerce. IIRC, they had just filed late but the thinly veiled threats were crystal clear and the tax authority would probably have handed it over to law enforcement. And would've won.
Miss the monthly vies reports for three or four times and they will be hot on your tail and fine the living shit out of you.

Lots of countries have gotten rid of vat thresholds or drastically lowered them. Vat is the worst tax to avoid/evade of all of them as the system is close to waterproof.
 

koohl

Mentor Group Gold
Hi everyone

Need some help :)

We sell digital services into EU from a Seychelles company. We have lost our bank account recently and now face a dilemma. We need to set up a new company that can sell into the EU, without charging VAT as it would make our service uncooperative. We mainly sell to consumers, not companies.

Ideally with a low corporate tax rate.

Please can anyone suggest how we would achieve this?

Turnover is about 1 million pa

Thanks
do with a Cyprus company, they will never come after you if you don't charge VAT and file dormant end year!
 

GPT

Active Member
not if you don't live in Cyprus and amounts are small.
It has nothing to do with Cyprus. You live a decade ago. Your company will not last a year anymore.

Ok they might not go after you personally although don’t show up in any vies (ie EU) country because that data is shared.

Vat returns indeed it wasn’t too bad. The problem is the vies reports. Also Cyprus is on top of those. Practical experience here.
 

RachelNg

New member
Hi everyone

Need some help :)

We sell digital services into the EU from a Seychelles company. We have lost our bank account recently and now face a dilemma. We need to set up a new company that can sell into the EU, without charging VAT as it would make our service uncooperative. We mainly sell to consumers, not companies.

Ideally with a low corporate tax rate.

Please can anyone suggest how we would achieve this?

Turnover is about 1 million pa

Thanks
To be honest, a company can have more than one bank account, it’s fine to open a new account when one account is closed. So no pressure about it in this case unless the reason your bank account is closed relates to a crime, for example, a money-laundering case ( I just mean what if). If the account is closed due to the changes in the bank’s policies, there are chances to open a new account at another bank.

By the way, opening a new company as your business strategy, that’s fine. For most offshore countries, there is no VAT if the goods/services are not sold inside that country or to its residents. For Hong Kong, there is no VAT.

Therefore, these are the options for a new company. It’s based on your need to choose between an offshore country or Hong Kong. Hong Kong is more reputable as a financial hub, but the annual maintenance requirements are complicated and costly
 
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