Relocating business due to VAT
Oct 26th 2020, 10:34 am
#1
Just Joined
Thread Starter
Joined: Oct 2020
Posts: 1
Relocating business due to VAT
Hi guys and thank you for the forums, I do hope I can finally make a decision as to what is best for my business.
Ok so here is the dilemma in short
I run an eCommerce business with small margins, my main products are attractive and competitive ONLY because I currently do not charge VAT! So if I go over the UK 85K threshold my business is then non-viable.
I have been investigating a way forward and here are my findings so far (please do correct me where I am wrong)
1) Spain does not have a VAT threshold - This could mean I can continue to sell at my current prices and be viable
--- HOWEVER, my business is online (sort of) I sell through amazon, physical software. however, I buy a physical product and ship a physical product - I am led to believe there is a 35K Eur threshold - What constitutes "€35,000 per annum threshold for foreign companies selling goods to Spanish consumers via the internet. "
2) As I never personally physically hold any stock my business can be run from anywhere in the world with the internet - a Virtual office in Spain pops up as a solution often
3) My current business in the UK is a LIMITED COMPANY - is there similar in Spain? - mainly do not want personal debt from any eventualities that could happen to the business
4) Would it be easier to set up a totally new business in Spain or is there a way to benefit from the VAT threshold by way of a satellite branch - opening a new business from scratch would cause other internal issues that would make the prospect much less appealing.
5) I hope I have covered everything but I am sure there is much missing
Thank you to all in advance that can help me
Ok so here is the dilemma in short
I run an eCommerce business with small margins, my main products are attractive and competitive ONLY because I currently do not charge VAT! So if I go over the UK 85K threshold my business is then non-viable.
I have been investigating a way forward and here are my findings so far (please do correct me where I am wrong)
1) Spain does not have a VAT threshold - This could mean I can continue to sell at my current prices and be viable
--- HOWEVER, my business is online (sort of) I sell through amazon, physical software. however, I buy a physical product and ship a physical product - I am led to believe there is a 35K Eur threshold - What constitutes "€35,000 per annum threshold for foreign companies selling goods to Spanish consumers via the internet. "
2) As I never personally physically hold any stock my business can be run from anywhere in the world with the internet - a Virtual office in Spain pops up as a solution often
3) My current business in the UK is a LIMITED COMPANY - is there similar in Spain? - mainly do not want personal debt from any eventualities that could happen to the business
4) Would it be easier to set up a totally new business in Spain or is there a way to benefit from the VAT threshold by way of a satellite branch - opening a new business from scratch would cause other internal issues that would make the prospect much less appealing.
5) I hope I have covered everything but I am sure there is much missing
Thank you to all in advance that can help me
Oct 26th 2020, 11:09 am
#2
SUPER MODERATOR
Joined: Oct 2007
Location: In a darkened room somewhere.............
Posts: 34,027
Re: Relocating business due to VAT
Hi, and welcome to BE.
I'm afraid you'll need to change your username, as per Site Rule 11. Please contact Admin ('contact us' button at the bottom of each page) and they can sort a change for you.
Thanks and good luck, I'm sure the lovely peeps in the Spain forum will be able to advise you well.
I'm afraid you'll need to change your username, as per Site Rule 11. Please contact Admin ('contact us' button at the bottom of each page) and they can sort a change for you.
Thanks and good luck, I'm sure the lovely peeps in the Spain forum will be able to advise you well.
Oct 26th 2020, 6:04 pm
#3
BE Forum Addict
Joined: Jan 2016
Posts: 2,320
Re: Relocating business due to VAT
Hi guys and thank you for the forums, I do hope I can finally make a decision as to what is best for my business.
Ok so here is the dilemma in short
I run an eCommerce business with small margins, my main products are attractive and competitive ONLY because I currently do not charge VAT! So if I go over the UK 85K threshold my business is then non-viable.
I have been investigating a way forward and here are my findings so far (please do correct me where I am wrong)
1) Spain does not have a VAT threshold - This could mean I can continue to sell at my current prices and be viable
--- HOWEVER, my business is online (sort of) I sell through amazon, physical software. however, I buy a physical product and ship a physical product - I am led to believe there is a 35K Eur threshold - What constitutes "€35,000 per annum threshold for foreign companies selling goods to Spanish consumers via the internet. "
2) As I never personally physically hold any stock my business can be run from anywhere in the world with the internet - a Virtual office in Spain pops up as a solution often
3) My current business in the UK is a LIMITED COMPANY - is there similar in Spain? - mainly do not want personal debt from any eventualities that could happen to the business
4) Would it be easier to set up a totally new business in Spain or is there a way to benefit from the VAT threshold by way of a satellite branch - opening a new business from scratch would cause other internal issues that would make the prospect much less appealing.
5) I hope I have covered everything but I am sure there is much missing
Thank you to all in advance that can help me
Ok so here is the dilemma in short
I run an eCommerce business with small margins, my main products are attractive and competitive ONLY because I currently do not charge VAT! So if I go over the UK 85K threshold my business is then non-viable.
I have been investigating a way forward and here are my findings so far (please do correct me where I am wrong)
1) Spain does not have a VAT threshold - This could mean I can continue to sell at my current prices and be viable
--- HOWEVER, my business is online (sort of) I sell through amazon, physical software. however, I buy a physical product and ship a physical product - I am led to believe there is a 35K Eur threshold - What constitutes "€35,000 per annum threshold for foreign companies selling goods to Spanish consumers via the internet. "
2) As I never personally physically hold any stock my business can be run from anywhere in the world with the internet - a Virtual office in Spain pops up as a solution often
3) My current business in the UK is a LIMITED COMPANY - is there similar in Spain? - mainly do not want personal debt from any eventualities that could happen to the business
4) Would it be easier to set up a totally new business in Spain or is there a way to benefit from the VAT threshold by way of a satellite branch - opening a new business from scratch would cause other internal issues that would make the prospect much less appealing.
5) I hope I have covered everything but I am sure there is much missing
Thank you to all in advance that can help me
You need guidance from a good accountant.
