international sale and tax duties

orient · #1 06-30-2016

Hello to all,

I have some concern that i need help of yours about tax duties of an international sale that three countries are included.

As an instance we have registered company in Germany and list an item on ebay.com and this item is sold to UK but shipped from Turkey to UK not from Germany, in this case do we need to make invoice for this sale through our German company ? The German company won't have any operational activity in Germany and listed items on eBay.com will be not available for anyone from Germany to purchase. How the taxation of this business can be handled ? Would i be the responsible to pay corporate tax in Germany for this sale ?

When we sell something to UK or USA from Germany, are we responsible to make German invoice for this sale or you make invoice only for the domestic sales ? If you make the invoice also for each international sale then do you include VAT in the invoice or not ?

The money will be transferred to the bank account of the German company through PayPal business account. Also i would like to ask when use PayPal business account, does PayPal also asks you to send PayPal the supplier invoice of the goods per each sale as well ? If they do then do we need to pay VAT in Turkey and get the invoice of goods from suppliers and translated it into German and send to PayPal ? This sounds to me not practical and i want to believe that there must be a way to get all these sorted out with minimal tax responsibilities in Germany since the item is shipped from Turkey and the buyer is not from Germany as well.

You can make the scenario for other country as well such as you have company in U.S. but get the items shipped from Thailand to UK for example.

Thank you for your help.

dan_ebay · #2 06-30-2016

Your post has given me a headache. Company in Germany,items in Turkey,not selling to Germany but selling to UK/US. Why did you make the company in Germany? I assume theres a reason you've not made it in Turkey but the UK would of been a better option.

You're better off talking to a accountant. If Turkey was a EU country then the following would apply if its B2C, I see you still have vat in Turkey though so not sure if it still does or not.

Yes you've made the company in Germany so you pay corporation tax in Germany

You pay vat where the item is sent from (Turkey) unless its going outside the EU where there is no vat (e.g to the US)

I don't have any German paypals but they don't ask me for anything in the UK, expect same there

rsot · #3 06-30-2016

Get a professional who specializes in taxes and duties OP /done

orient · #4 06-30-2016

Quote:

Originally Posted by dan_ebay

Your post has given me a headache. Company in Germany,items in Turkey,not selling to Germany but selling to UK/US. Why did you make the company in Germany? I assume theres a reason you've not made it in Turkey but the UK would of been a better option.

You're better off talking to a accountant. If Turkey was a EU country then the following would apply if its B2C, I see you still have vat in Turkey though so not sure if it still does or not.

Yes you've made the company in Germany so you pay corporation tax in Germany

You pay vat where the item is sent from (Turkey) unless its going outside the EU where there is no vat (e.g to the US)

I don't have any German paypals but they don't ask me for anything in the UK, expect same there

Thanks.

Sorry i have explained it even more complicated though the situation is enough complicated itself.

The reason why not make in Turkey is PayPal banned in Turkey by goverment, no any PayPal services in Turkey anymore.

The reason why not make it in UK/USA is i don't have someone that i can assign him as nominee and official director of the company to be busy with all the paper work instead of me.In germany i have relative who will be the officially nominee of mine and director of the company as well while i am %100 shareholder of the company.

Yes, Turkey is non-eu country.

My relative living in small city in Germany, he already talked with a few accountant but none of them have an idea even how to make an international sale through ebay fit into German law and tax system.We still looking for accountant who is experienced in such a case.

I thought maybe somebody would have had similar experience on eBay even if the country names were different.

brlk · #5 07-15-2016

Dear Orient,
We have similar concerns about Paypal, and have similar ideas to find a way out. Since I don't have enough posts, could you please pm me your skype id or whatsapp?