Offshore company still shipping from EU location.

Phantom89 · May 16, 2020

Hi,

I have noticed sellers on the internet on sites like Alibaba express sometimes have stock located in European countries so when a customer orders from one of these none EU companies there delivery is from the EU and the customer does not normally have to pay import duty etc. I guess the offshore company does not have to pay any taxes regarding the eu vat limits etc either but i may be wrong.

Would it be legal if i had stock in a EU country when i am located also in the EU but the sales were done from a Offshore company similar to the other companies or are there complications and things to be careful of when doing this and what would be the best location to setup an offshore company to make this method work the best considering i am based in the EU myself.

Thanks.

Sols · May 16, 2020

Is it legal? Yes.

Do you still have to comply with EU VAT and local tax laws? Also yes.

Phantom89 · May 17, 2020

I do not have a ltd company in the EU i am just located there and send stock form there. I think the china companies just send stock over to the EU and distribute it from the EU without having company here.

Sols · May 17, 2020

It doesn't matter where your company is incorporated. If you are based in EU, your company is tax resident in the EU. Look into topics like CFC, CRS/AEOI, and company tax residence.

You also need to solve for EU VAT.

Phantom89 · May 17, 2020

The reason I ask is that I am in the uk and the uk are leaving the eu so i wanted some kind of setup in the eu but avoiding any extra export duty that will probably happen when exporting from uk to eu.