St Vincent company invoice

[dukelunar]

Hi,
I'm looking to set up a company in St Vincent or any other offshore jurisdiction, the questions is that I have to send invoices to Europe for my services ( Northern Europe ).
I have heard that many companies do not even pay invoices from tax havens, is there any service that could send the invoice for me and then pay me?
Any help would be appreciated.

 

[Eldorado]

How have you heard this? If you're providing some substantial service, you expect to get paid for it. Otherwise, your client wants to basically rob you, right?
In my experience, I like to mention during the deal negotiations that my company is registered offshore and assure them that there will be no problems.

Another, more expensive option is to set up a "pass-through" company in a more trustworthy jurisdiction and bill your client through this company. Ultimately, all the money comes to your SVG-based company.

 

[moshezafran]

Hi,
I'm looking to set up a company in St Vincent or any other offshore jurisdiction, the questions is that I have to send invoices to Europe for my services ( Northern Europe ).
I have heard that many companies do not even pay invoices from tax havens, is there any service that could send the invoice for me and then pay me?
Any help would be appreciated.

Yes there was a service i used it.

 

[DarkRevoMan]

Hi,
I'm looking to set up a company in St Vincent or any other offshore jurisdiction, the questions is that I have to send invoices to Europe for my services ( Northern Europe ).
I have heard that many companies do not even pay invoices from tax havens, is there any service that could send the invoice for me and then pay me?
Any help would be appreciated.

Would a merchant account or credit card processing company work for this? Just let your client know a separate merchant payment processing service will show up on the bill. They send your money to you.

 

[EliasIT]

You could setup a UK LTD owned by your ST Vincent company and which only handles the payments. It would be a payment processor!

 

[Sols]

Why SVG? Better to solve your problem by not having the problem at all. Forget those types of jurisdictions if you're doing business with counterparties in jurisdictions where invoices from SVG and such are difficult.

How have you heard this? If you're providing some substantial service, you expect to get paid for it. Otherwise, your client wants to basically rob you, right?

They can't refuse to pay you, but there are some circumstances under which an invoice paid to a party in a tax haven might not be considered a valid business expense. So if you invoice such a company from such a jurisdiction for example 10,000 EUR, it's 10,000 EUR of pure loss rather than 10,000 EUR of cost that can be used to lower the tax base. That's an illustrative oversimplification, though.

For that and for other related reasons, some companies simply refuse to enter into agreements with companies incorporated in places like SVG, Seychelles, and so on.

 

[Mike Forman]

Why SVG? Better to solve your problem by not having the problem at all. Forget those types of jurisdictions if you're doing business with counterparties in jurisdictions where invoices from SVG and such are difficult.


They can't refuse to pay you, but there are some circumstances under which an invoice paid to a party in a tax haven might not be considered a valid business expense. So if you invoice such a company from such a jurisdiction for example 10,000 EUR, it's 10,000 EUR of pure loss rather than 10,000 EUR of cost that can be used to lower the tax base. That's an illustrative oversimplification, though.

For that and for other related reasons, some companies simply refuse to enter into agreements with companies incorporated in places like SVG, Seychelles, and so on.

This is indeed the case in some countries or if the are billed by a country which is on a tax heaven list they need to report it on a separate form, if not the expense will be rejected by tax auhtorities.

So better check the tax heaven list of that specific country, EU and OESO.

Also payment to those countries will be flagged by banks, so for the company you bill its too troublesome.

Unless you really render services from St Vincent and have an actual office and people there which I doubt, you will have difficulties with finding customers who will want to do business with you.

As others have mentioned put a legit jurisdiction such as UK Ltd or Bulgarian company in between.

 

[dukelunar]

Thank you guys for the replies, I'll look into what you all said to me.
Do you guys know any good "merchant services" which you can invoice from? which also accepts "taxhaven" companies?

 

[karishi]

I have a SVG LLC, I invoice clients in the US and Europe with no issues, have had a Wise Business account for 5 years. I print the invoice with invoicehome and it gets paid.
Currently only LLC are 0 tax so it's a pass through entity, you need to be resident in the UAE for this work ( it's much cheaper to have a SVG LLC and Remote Working visa or Freelance Visa than having a freezone company )

 

[pfser]

I have a SVG LLC, I invoice clients in the US and Europe with no issues, have had a Wise Business account for 5 years. I print the invoice with invoicehome and it gets paid.
Currently only LLC are 0 tax so it's a pass through entity, you need to be resident in the UAE for this work ( it's much cheaper to have a SVG LLC and Remote Working visa or Freelance Visa than having a freezone company )

Did I get you right? So you had an account with Wise for SVG company?

I have heard that many companies do not even pay invoices from tax havens

That's true, many EU companies are afraid of their bank account closure due to transactions with offshore companies.

 

[gatrader]

I have a SVG LLC, I invoice clients in the US and Europe with no issues, have had a Wise Business account for 5 years. I print the invoice with invoicehome and it gets paid.
Currently only LLC are 0 tax so it's a pass through entity, you need to be resident in the UAE for this work ( it's much cheaper to have a SVG LLC and Remote Working visa or Freelance Visa than having a freezone company )

So only wise?

 

[369]

seems like wise business is not accepting svg anymore

 

[karishi]

Did I get you right? So you had an account with Wise for SVG company?


That's true, many EU companies are afraid of their bank account closure due to transactions with offshore companies.

Yes I have had Wise Business for 5 years, before as an IBC, after as a LLC. Super strong KYC by Wise. Only client money got into the account never my own, all transfers inbound had an incoice and a contract. Have had 7-8 clients so far, all famous companies. Probably now they tightened requirements but my business is clearly legit.

 

[369]

Yes I have had Wise Business for 5 years, before as an IBC, after as a LLC. Super strong KYC by Wise. Only client money got into the account never my own, all transfers inbound had an incoice and a contract. Have had 7-8 clients so far, all famous companies. Probably now they tightened requirements but my business is clearly legit.

Do you have any experience with paypal and svg ?
Based on terms of paypal svg is allowed to open accounts

 

[karishi]

Do you have any experience with paypal and svg ?
Based on terms of paypal svg is allowed to open accounts

I only ever used Wise, I am a software developer contractor, companies pay me on Wise, that's it

 

[FantomOffshore]

I have a SVG LLC, I invoice clients in the US and Europe with no issues, have had a Wise Business account for 5 years. I print the invoice with invoicehome and it gets paid.
Currently only LLC are 0 tax so it's a pass through entity, you need to be resident in the UAE for this work ( it's much cheaper to have a SVG LLC and Remote Working visa or Freelance Visa than having a freezone company )

Do you think this will continue to be an acceptable setup for the UAE over the coming years?

 

[karishi]

Do you think this will continue to be an acceptable setup for the UAE over the coming years?

Who knows?Predicting what happens in the UAE next month is impossible, so thinking about years...more than impossible. I have a freelance visa which I use for work I do in the UAE ( getting paid by a UAE client on Wise was impossible ) while the rest doesn't touch the UAE and there is no personal tax, so they shouldn't care.
My 5 cent is that UAE is pushing towards people getting a Freezone company rather than a freelance visa, starting june 2023 freelance permits will need to pay the 9% corporate tax. But again, there is the remote working visa which is ridicolously cheap, I did the freelance visa because at the time and for my setup ( all US and EU clients ) it was the cheapest.
If at some point this will be not good anymore, there will be messaging about it and the setup will change. One thing which you have to take for granted is that things change fast in this world, you have to keep adapting.

 

[369]

did you had your svg already for a year when you applied for the remote working ?

 

[fshore]

Yes I have had Wise Business for 5 years, before as an IBC, after as a LLC. Super strong KYC by Wise. Only client money got into the account never my own, all transfers inbound had an incoice and a contract. Have had 7-8 clients so far, all famous companies. Probably now they tightened requirements but my business is clearly legit.

Did wise ask you to show the invoices for each incoming transfer?

 

[karishi]

Did wise ask you to show the invoices for each incoming transfer?

I showed them the contracts and the invoices for each incoming transfer, they do a lot of KYC. And I have big clients, so it's not difficult for them to verify that it's legit. I mean, wise business works if you receive few payments from known entities, if you receive lots of small payments, they close your account quickly

did you had your svg already for a year when you applied for the remote working ?

I haven't applied yet, I did the freelance visa 3 years ago. Remote working visa was introduced after I did my freelance visa.