How to pay and record a freelancer abroad

Discussion in 'Business & Tax Advice' started by jeseo, Jan 18, 2014.

  1. jeseo

    jeseo Newbie

    Jan 18, 2014
    Likes Received:
    Seo Manager
    Hello everyone!

    I'd like to open a web company in Estonia, and I have all the requirements to do it. My problem is that 50% of my future business will be with italian websites and freelancers, and this could be a problem.

    Sometimes I need to publish a banner, a guest post or other kind of advertisement in italian websites, and often I work with registered italian companies, with regular VAT, and I receive invoices from them. But sometimes (even if lately it happened more often), I work with individual webmasters who own a website or a blog without having a company, or any kind of individual VAT, so they can't make an invoice.

    I know that if an italian company decides to work occasionally with a freelancer, they can make a "special invoice", with the personal data of the freelancer, and pay taxes for him. For example, the company will pay the freelancer 100 euro, and at the same point it will pay to the state a tax of 20 euro for that service (20% of the net) at the end of the year.

    Considering my future company will be not in Italy, how can I deal with that? Of course I can't pay taxes in Italy, but at the same point I will need to record that payment of 100 euro.

    Moreover I use paypal to pay these freelancer, but I don't think it's a relevant information in this case.

    Hope to have some advices and thanks in advance!

    Last edited: Jan 18, 2014