Question Online biz: Tax, payment solutions, structure (not high risk) status?

[apollo369]

Hi,

I would like to pick up your brains about my case:
- Paraguay resident with permanent residency (Paraguay does not tax foreign income)
- European citizenship
- Seychelles company with Transferwise linked business account
- I have a bank account in the US (from having worked there for a few years) with personal paypal account.

Currently teaching languages through a platform with revenue flowing to US paypal and then my US bank account (non resident with Paraguayan address) so I should not pay any taxes.

I'm launching my wordpress website where I would like to sell online language lessons and courses (so definitely not high risk business). I'm not sure if it will be successful so I'm looking for minimum initial spending and paperwork (I want to focus on the business, not waste my time on the paperwork).

I thought I would use my Seychelles company for this business but I'm struggling finding a payment processor. There is potential wordpress plugin for linking transferwise but it has not launched yet and it's more of a direct debit (does not accept debit or credit card):
https://jarrydlong.co.za/woocommerce-transferwise-integration/
I inquired with advcash but it does not seem like a simple solution, you need to use their API, there is no wordpress plugin. So I'm debating starting using a simple paypal plugin (with my US paypal). What would you advise me to do?

Thank you very much

 

[LoveMyLife]

Hi,

I would like to pick up your brains about my case:
- Paraguay resident with permanent residency (Paraguay does not tax foreign income)
- European citizenship
- Seychelles company with Transferwise linked business account
- I have a bank account in the US (from having worked there for a few years) with personal paypal account.

Currently teaching languages through a platform with revenue flowing to US paypal and then my US bank account (non resident with Paraguayan address) so I should not pay any taxes.

I'm launching my wordpress website where I would like to sell online language lessons and courses (so definitely not high risk business). I'm not sure if it will be successful so I'm looking for minimum initial spending and paperwork (I want to focus on the business, not waste my time on the paperwork).

I thought I would use my Seychelles company for this business but I'm struggling finding a payment processor. There is potential wordpress plugin for linking transferwise but it has not launched yet and it's more of a direct debit (does not accept debit or credit card):
https://jarrydlong.co.za/woocommerce-transferwise-integration/
I inquired with advcash but it does not seem like a simple solution, you need to use their API, there is no wordpress plugin. So I'm debating starting using a simple paypal plugin (with my US paypal). What would you advise me to do?

Thank you very much

Hire someone on any fo freelance portals to integrate AdvCash with your Wordpress website. It can cost you less than 200 USD.
The problem can be in other way:

Were are your customers?
If in EU, you can be responsible to bill VAT on all educational activities and courses sold to EU customers, file VAT return every month, send wire with colledted VAT every month..
The best for you in this situation is not to have customers in EU.

 

[apollo369]

based on my current customers, half of them are in Europe, the other half in North America but I'm thinking of maybe focusing on the Russian and Chinese market, how would it be in these markets? Would I have to deal with VAT too?

 

[LoveMyLife]

If you do not have a real chineese business presence, there is no way how chinees customers can pay you. If you want to have a customers in China, you have to have a company in China, bank account in China and pay taxes in China. In some cases, having a Hong Kong company can be way around.

Russia is OK. Russians have credit cards and you can use any processor. And you do not have to bill and pay VAT.

 

[apollo369]

I was looking at Paysera, looks like a better option (they have tons of plugins), not sure if they allow Seychelles company but I should be able to open a personal account which given my Paraguay residency should shield me from taxes. Anyone has done that. The VAT for Europe is still a headache (I don't mind paying it but I don't see an easy way to automate it).

 

[koohl]

sorry to reopen this old thread, however, what is the status for today 2024 ?

- Paraguay resident with permanent residency (Paraguay does not tax foreign income)
- European citizenship
- Seychelles company with Transferwise linked business account
- I have a bank account in the US (from having worked there for a few years) with personal paypal account.