Hi all, I am currently in product development and will be selling hopefully online within 6 months. At this stage product is being manufactured in Portugal. The product will hopefully be shipping to customers in North America (inc Mexico), Europe, Australasia and some South American countries eg Brazil. I am after some advice re international taxes/customs etc. I am thinking we warehouse in Europe as the product is manufactured there meaning we can then save on VAT and any import duties. Anyone know the most tax favourable country within Europe as well as a good company that warehouses and ships products? Its only small boxes a tshirt fits in them. I thought it would be an interesting one for the community considering the worldwide nature and varied online experience.
If you are planning a business and register for VAT - you can reclaim all of it. Duty you don't get back - so starting from Eurpoe avoids that problem Problem is cashflow - you need to pay VAT on European sales whether or not you have been paid. If your turnover is less than £150k you can register for a flat rate scheme - but need to check the numbers remain in your favour.