VAT payment at an offshore/domestic company

[Arsenal88]

Hi guys,

First of all, I am very happy for being here. I have got two questions to you and these are connected to each other. So let us face it!

My 1st question is the following: If I create an offshore company (e.g. in Deleware, Florida or Hong Kong), have I got to pay for the VAT in my homeland?

My 2nd question is the following: Just put the case that, the basic situation is that I have got some VAT amount of debt at my domestic company. If i create an offshore company which incorporates my domestic company, in this case, is there any way to avoid for paying the the recent VAT amount of debt in my homeland? Would it be possible?

Thank you for your answer in advance!

Best wishes to everyone

 

[UScorp]

Hi, VAT is relevant only in EU countries. VAT is charged in your home country on all Invoices etc / No VAT when in a other EU County (reverse Charge) an NO VAT on all other jurusdictions like US,HK etc

 

[Arsenal88]

Hi,

Thank you for your rapid and correct answer. I understand what you wrote to me. We does not export abroad. Our company has got small retailer partners and we deliver to them inland only. Therefore, we have to pay a massive amount of VAT (18 %). What do you think, how could we avoid to pay it somehow?

 

[UScorp]

18% is Malta. What kind of products do you sell ?

 

[Arsenal88]

Hi,

We produce different kind of bakery goods (e.g. breads, buns, rolls, hamburger buns etc.). Our company is categorized in small- and medium sized companies. We can call it a family company too. My country is Hungary (EU member state) where the average VAT rate is 27%, but in our sector the rate is 18%. But this is too high for us. Unfortunately, almost the all retailers ask invoice. That is the main problem, this is so much amount of money. This is the reason why I am looking for some kind of solution if exists.

 

[UScorp]

Complicated to lower your VAT payments because of your products and clients. Ask these guys https://first-office.co/vat-deferment/ they helped me in the past with VAT problems

 

[Arsenal88]

Hi,

I will write an email to them. Tahnks your kindness and I wish you all the best!

Bye