VAT on ads for europeans does LLC solve this?

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ecomeuropean

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Hi guys,
Europeans have to pay VAT on online advertising. If we were to sell within Europe we could claim the VAT back from the VAT paid by the customers but if we sell to USA we can't claim the VAT on advertising back because US sales aren't subject to VAT.

Does setting up LLC solve this? Has anyone done it and can you share your experience please?

Also is setting up LLC enough or is it necessary to move out from Europe to country that is not subject to VAT?

Any tips would be appre
ciated.
 
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Your first statement is messed up and wrong. You can't "claim VAT back from customers".

You have to charge VAT from EU customers and pay it regardless where you or your company is otherwise you are committing tax fraud which is a crime.
 
Amaz0n said:
Your first statement is messed up and wrong. You can't "claim VAT back from customers".

You have to charge VAT from EU customers and pay it regardless where you or your company is otherwise you are committing tax fraud which is a crime.
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I meant claiming VAT from the ads when selling in Europe
 
ecomeuropean said:
I meant claiming VAT from the ads when selling in Europe
Click to expand...

Neither does that make sense.

If you are a company outside the EU then they won't charge you VAT anyway and if you are a company inside the EU, then they don't charge VAT either if the business is not the same EU country and you have a valid VAT ID.
 
ecomeuropean said:
Hi guys,
Europeans have to pay VAT on online advertising. If we were to sell within Europe we could claim the VAT back from the VAT paid by the customers but if we sell to USA we can't claim the VAT on advertising back because US sales aren't subject to VAT.

Does setting up LLC solve this? Has anyone done it and can you share your experience please?

Also is setting up LLC enough or is it necessary to move out from Europe to country that is not subject to VAT?

Any tips would be appre
ciated.
Click to expand...

States could be the worst place to get rid of Tax, just set up a company offshore like Dubai so legally you do not have to pay anything also your clients depends on the country tax codes they in could charge differently.
 
Skaylet said:
States could be the worst place to get rid of Tax, just set up a company offshore like Dubai so legally you do not have to pay anything also your clients depends on the country tax codes they in could charge differently.
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In many countries, the 'foreign' setup will be assessed as being onshore. Unless there is 'substance' aka office & staff.
 
BiggusD1ckus said:
In many countries, the 'foreign' setup will be assessed as being onshore. Unless there is 'substance' aka office & staff.
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Hi Biggus,

Onshore and Offshore terminology not comes from setting up an actual office its coming from the countries with Business Operating Conditions and their Tax Codes

In this case there are countries in the middle so they been called MidShore please read the article it will be very helpful.

https://tbffinance.com/what-is-the-difference-between-offshore-onshore-and-mid-shore-companies/

For instance, let me give you an example: this is the common practice these days and completely legal and government and tax authorities is kinda walk you through this procedure.

In UAE especially Between Dubai (onshore) and Ras Al Khaimah (offshore), if you set up two companies and do your online selling from the offshore (0% tax) and settle the income to (onshore) bank account. You don't pay anything
 
Amaz0n said:
Neither does that make sense.

If you are a company outside the EU then they won't charge you VAT anyway and if you are a company inside the EU, then they don't charge VAT either if the business is not the same EU country and you have a valid VAT ID
Click to expand...

Amaz0n said:
Your first statement is messed up and wrong. You can't "claim VAT back from customers".

You have to charge VAT from EU customers and pay it regardless where you or your company is otherwise you are committing tax fraud which is a crime.
Click to expand...
They don't charge the VAT when I provide the VAT number but I still have to pay it myself to the authorities. Would setting up LLC help with that? Any tips or experience would be appreciated
 
ecomeuropean said:
They don't charge the VAT when I provide the VAT number but I still have to pay it myself to the authorities. Would setting up LLC help with that? Any tips or experience would be appreciated
Click to expand...

That's not true. There's not VAT between companies both having a VAT ID.

You charge your customers VAT and then forward it to the correct authority.

You generally cannot prevent charging VAT from EU customers regardless where you or your company is located. LLC or not does not matter. It's tax fraud and a crime.
 
Equally it depends on where the company is based that you are buying your advertising from. So if you are based in the UK for example and you are buying ads from a company which is Canadian based and registered, then you won’t pay VAT, as they do not use VAT
 
Both Google and Facebook are based in Ireland. That means europeans are required to pay VAT on top of the adspend. There may be threshold in UK for it but not in my country
 
ecomeuropean said:
Both Google and Facebook are based in Ireland. That means europeans are required to pay VAT on top of the adspend. There may be threshold in UK for it but not in my country
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Applies only to companies without VAT ID. If you are a legit EU business, you have a VAT ID and will add it to your Google Ads account and then they won't charge you the VAT.
 
Amaz0n said:
Applies only to companies without VAT ID. If you are a legit EU business, you have a VAT ID and will add it to your Google Ads account and then they won't charge you the VAT.
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The way it works in my country is when I provide the VAT ID they won't charge the VAT but then I have to pay it myself to the government. I was wondering if anyone has similar experience and can share any tips because if I sell to United States I have to pay the adspend + VAT and that can be disadvantage when US advertisers don't have to pay it and my CPA (Cost Per Acquisition) is much higher
 
ecomeuropean said:
The way it works in my country is when I provide the VAT ID they won't charge the VAT but then I have to pay it myself to the government.
Click to expand...
That's not true. You are confusing this with something else. Which country are you from? (Doesn't change the fact, that it's not true, just wanting to know where your company is located).

ecomeuropean said:
I was wondering if anyone has similar experience and can share any tips because if I sell to United States I have to pay the adspend + VAT and that can be disadvantage when US advertisers don't have to pay it and my CPA (Cost Per Acquisition) is much higher
Click to expand...
You do something wrong. No EU company is paying VAT for buying ads from companies who are a) outside the EU or b) have a VAT ID and are in a different EU country than your EU company.
 
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