Quote:
Originally posted by jeroman
Can someone please fill me in with this new issue regarding
EU, taxes and VISa and whatever it is making US people wanna start companies in EU ??
Thanks, Jeroman
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The EU will start requiring companies that sell over a certain amount to EU citizens to collect VAT from their EU customers at the rate of the country the person is in.
The advantage you get by setting up a EU company in that case is that sales within the EU is charged at the rate of the country of the company making the sale, which makes impact of the VAT lower if you incorporate in a low VAT country.
And if you for some reason have expenses in the EU that you are charged VAT on, being incorporated in a EU country and moving the billing of your EU customers there will allow you to reclaim some or all of that VAT. This could be the case if you currently employ someone in the EU that have business expenses there for products that aren't taken out of the EU and hence won't be VAT exempt even though they've been bought by a non EU company.
Additionally, it may help you do some tax planning. Some EU countries (including the UK) have company structures that are very tax efficient for some uses, particularly if you don't conduct business in or with the country in question, allowing you to get some of the benefits off traditional offshore tax havens while being incorporated in a more well reputed location.
I'm not a financial adviser, though, so if you are thinking about setting up a company, get some professional advice first.