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Doug Nebeker ("Doug")
I know this is not a place for legal advice (and I need to hire a lawyer for that), but here is the thing. I'm expecting low sales volumes (lower than $50k per year).
I want to use Stripe because it's cheaper, easier and more user friendly. The problem is, Stripe is not supported in my country. I have a US bank account to receive the payments though. But I need to register a company on one of the countries that Stripe supports.
I'm thinking about the UK. If I have a low turn-over, then I won't be liable for VAT/Tax on Profits?
I'm thinking about the UK because it's very easy to register there and I can do it online in a couple days.
Wednesday, November 11, 2015
You will be liable for both VAT and tax on profits. Tax on profits has nothing to do with turnover, and now thanks to VAT MOSS, neither does turnover on sales of digital goods within the EU.
Opening a company in another country just to use Stripe, for what by your own admission will be low sales, is crazy. Why buy into all that legal and financial headache for the sake of a favourite payment collector?
Use one of the existing providers like Fastspring. Any extra fees they might charge would would still be far less than the accountants and lawyers fees when if it came to opening a company in a country that's not your own.
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