Cyprus, Hong Kong Company Structure Avoid VAT

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I hear that many people avoid paying VAT and taxes by setting up a Hong Kong offshore company alongside a Cyprus-based company, especially in e-commerce. How do they manage to do this without getting caught? I'm really curious to understand the process for informational purpose of course :::)
 
First Post: Welcome to BHW :)
There are special Agencies for that kind of "office"; use Google.
Many SMM Panel owners (at least the bigger ones) are also driving their Business through the US, renting an office in a specific state, and so on.
I guess it's not allowed to discuss those practices here. I will also not answer this topic via DM.
But let's say: There are agencies; just use the search engine :)
It's more or less a one-stop shop; they upload your emails, etc., in your Dashboard, handle calls, etc.

Best,
zotix
 
First Post: Welcome to BHW :)
There are special Agencies for that kind of "office"; use Google.
Many SMM Panel owners (at least the bigger ones) are also driving their Business through the US, renting an office in a specific state, and so on.
I guess it's not allowed to discuss those practices here. I will also not answer this topic via DM.
But let's say: There are agencies; just use the search engine :)
It's more or less a one-stop shop; they upload your emails, etc., in your Dashboard, handle calls, etc.

Best,
zotix
Thank you ; )
 
Many people do it, but recently, I did a little research because bigger SMM Panels use it as well, mostly in the US.
Co-working / Office for 300-400/month; then the LLC registration, most likely not related to any SMM-Stuff (won't go into details here).
And then run their business & keep their PayPal Biz & other Payment Service Provider Like Stripe safe from the ban.

Best
z
 
What do you mean by "not getting caught"? There is no VAT in Hong Kong. The EU has a threshold of 10.000€, if you are below this, you wouldn't pay VAT. If you exceed it, you pay the amount of VAT of the country you are selling to.

The regulations, thresholds, etc. keep changing tho.
 
What do you mean by "not getting caught"? There is no VAT in Hong Kong. The EU has a threshold of 10.000€, if you are below this, you wouldn't pay VAT. If you exceed it, you pay the amount of VAT you are selling to.

The regulations, thresholds, etc. keep changing tho
The people mainly sell products to the eu and are way above the thresholds
 
What do you mean by "not getting caught"? There is no VAT in Hong Kong. The EU has a threshold of 10.000€, if you are below this, you wouldn't pay VAT. If you exceed it, you pay the amount of VAT of the country you are selling to.

The regulations, thresholds, etc. keep changing tho.
You are from Germany, and I am from Germany as well. That's not correct, at least for Germany.
Only if there is a "Doppelbesteuerungsabkommen"; since there is no VAT in HK, they have to claim it in Germany.

10k is not the threshold - its a different case and not applicable.
Long story short: It's not allowed; you are earning money from foreign countries to avoid paying taxes in your own country.

Best
 
You are from Germany, and I am from Germany as well. That's not correct, at least for Germany.
Only if there is a "Doppelbesteuerungsabkommen"; since there is no VAT in HK, they have to claim it in Germany.

10k is not the threshold - its a different case and not applicable.
Long story short: It's not allowed; you are earning money from foreign countries to avoid paying taxes in your own country.

Best
That’s why the people that do it live in Cyprus
 
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