Unpaid vat/tax on sales

[spartin]

So my friend(located in Asia) just told me he's been processing payments in france for his digital products business for a couple months now with payment processing/banking registered on the nominee(Latvian) of a UK ltd he bought off one of the sellers on the forum.

He isn't on the director's list, has processed €300k so far, and hasn't registered or paid any VAT on it, plus there's the topic of tax dues accrued by nominee.

I've asked him to stop processing on it, but is there a chance EU comes knocking for like 60k unpaid vat?

 

[12345]

Digital products is better than physical product but I don't know. Maybe in the future you can ask your customer to choose the country of their location upon checkout and the default country set up is 0% vat country like Gibraltar. I know game websites like g2a, kinguin used to do it like this

 

[spartin]

Digital products is better than physical product but I don't know. Maybe in the future you can ask your customer to choose the country of their location upon checkout and the default country set up is 0% vat country like Gibraltar. I know game websites like g2a, kinguin used to do it like this

So you're saying vat is owed to the country the customers choose at checkout and not their billing address or their card country?

 

[wellington]

So you're saying vat is owed to the country the customers choose at checkout and not their billing address or their card country?

New process came through a few years ago

Basically you pay / collect VAT for the EU if you sell into it over a certain amount

 

[daniels27]

So you're saying vat is owed to the country the customers choose at checkout and not their billing address or their card country?

Absolutely not. What he is saying is that you can subtly suggest the costomers to chose Gibraltar as their billing address to avoid VAT. But you better read this first:

https://taxation-customs.ec.europa.eu/system/files/2016-11/information_microbusinesses_euvat_2015_en.pdf

The most commonly used presumption is a general presumption which allows you to identify the location of the customer on the basis of two items on non-contradictory evidence as listed below in section 2.1.3. As a general presumption this is of use when none of the specific presumptions presented below (including the presumptions based on physical location) are notpossible to use.

2.1.3 Evidence for the identification of the location of the customer
There is a non-exhaustive list of evidence to determine the location of a customer in cases where you apply a general presumption (two pieces of non-contradictory evidence) or when you will need/want to rebut a presumption.
The illustrative list of evidence is as follows:

• the billing address of the customer;
• the Internet Protocol (IP) address of the device used by the customer or any method of geolocation;
• bank details such as the location of the bank account used for payment or the billing address of the customer held by that bank;
• the Mobile Country Code (MCC) of the International Mobile Subscriber Identity (IMSI) stored on the Subscriber Identity Module (SIM) card used by the customer;
• the location of the customer’s fixed land line through which the service is supplied to him;
• other commercially relevant information.

New process came through a few years ago

Basically you pay / collect VAT for the EU if you sell into it over a certain amount

Yes. But... You pay for the EU but charge the relevant rate for each country.

 

[Houdini]

Well, I can imagine what company your friend has bought and in that case he could care less about all of it. If there should be a request to pay VAT he can just let the company go.

 

[daniels27]

Well, I can imagine what company your friend has bought and in that case he could care less about all of it. If there should be a request to pay VAT he can just let the company go.

A shithole selling fakes and meds?

 

[spartin]

Well, I can imagine what company your friend has bought and in that case he could care less about all of it. If there should be a request to pay VAT he can just let the company go.

That's what i told him, his issue is the nominee has his email, and he thinks if it's given to the tax authority when they come asking him for vat and tax, they'll try to track him. Paranoid?

 

[JackAlabama]

That's what i told him, his issue is the nominee has his email, and he thinks if it's given to the tax authority when they come asking him for vat and tax, they'll try to track him. Paranoid?

of course will the nominee not pay any tax due. This is normal and needs to be expected.
I mean who in their right mind would wanna cover eventual tax payments for some measly monthly pay of a few 100 bucks?

 

[12345]

here is an example from incogniton website (digital service)
It's set up to UAE by default despite my IP being from european country. Many websites use this trick

 

[aniglo22]

here is an example from incogniton website (digital service)
It's set up to UAE by default despite my IP being from european country. Many websites use this trick

View attachment 7686

Did you try it in a Incognito tab ? Because the site uses woocommerce (woocomerce saves your cart data and choices).

 

[Houdini]

That's what i told him, his issue is the nominee has his email, and he thinks if it's given to the tax authority when they come asking him for vat and tax, they'll try to track him. Paranoid?

I wouldn't bother, if it is a gmail or other widely used e-mail you could care less. Which also should bring to attention to everyone reading this. Always use unique gmail addresses only for this purpose so your cyber walking can't be tracked this way at least.

 

[spartin]

I wouldn't bother, if it is a gmail or other widely used e-mail you could care less. Which also should bring to attention to everyone reading this. Always use unique gmail addresses only for this purpose so your cyber walking can't be tracked this way at least.

Isn't it usually simpler to track if its a gmail address as compared to others? I was recently reading a Google transparency report and they give up information for around 7,000 accounts each month just to France.

 

[Houdini]

Isn't it usually simpler to track if its a gmail address as compared to others? I was recently reading a Google transparency report and they give up information for around 7,000 accounts each month just to France.

better is proton etc. email address alone don't make it, was just a hint.

 

[mytoofood]

you mean you want to hide your IP when creating and sending the e-mail right ?