Reply to: Estonia E-residency

[contractorinatractor]

Has anybody replying to this thread visited Estonia before?

In Tallinn I was very shocked at the level of poverty. I doubt the country has developed as far as could be perceived by their impressive foray into internet businesses. Outside of a small 'old town', separated from the outside world by a wall, things seem rather bleak.

[northernladyuk]

Far better to go via the BrilloScheme! QC approved! You keep 99% of invoice amount.

Paying 98% to your ex-wive is a small price to pay. As is a few decades in jail.

I like that you have forgotten the singular of 'ex-wives'.

Anyway, the Oude Joris Max 120 Scheme returns 120%

[BrilloPad]

No sarcasm at all. It is perfectly possible. Just a terrible idea.

Far better to go via the BrilloScheme! QC approved! You keep 99% of invoice amount.

Paying 98% to your ex-wive is a small price to pay. As is a few decades in jail.

[Malcovitch]

If you have a valid business reason for arranging your affairs in this way you've received the answer that yes, it is possible, but you may be missing the part where not only are you paying tax to Estonia, you may also be required to pay tax in the UK.

You've also received the answer that if you are doing this for tax purposes only it is likely that even if you negotiated all relevant residency, deemed residency, place of supply rules, this may be considered to be aggressive tax avoidance or evasion.

I'm not hugely well informed on these things, hence my asking what some people here think is a daft question.

I'd be surprised if people are doing this legally in other EU countries, and wouldn't base my tax decisions on what other people in other jurisdictions are doing. There are a number of posters here who will tell you that just because other people are doing something, this doesn't make it legal in the eyes of HMRC.

Of course. I do find it surprising myself. Thanks for your time.

[northernladyuk]

Wooosh. That is the sound of sarcasm going over your head.

Are you aware it is a minimum aggressive avoidance and probably evasion?

No sarcasm at all. It is perfectly possible. Just a terrible idea.

[northernladyuk]

@woohoo, @ northernladyuk I presume you'd have to invoice straight into your Estonian account, is that right? Would it be zero VAT in that case?

I expect so. I am assuming of course that you are physically present in Estonia and doing the actual work while there.

[meridian]

Yes, but as I've said before, I'm trying to find out if it's possible here and if so, how it works. There are people doing this in the Eurozone, after all.

If you have a valid business reason for arranging your affairs in this way you've received the answer that yes, it is possible, but you may be missing the part where not only are you paying tax to Estonia, you may also be required to pay tax in the UK.

You've also received the answer that if you are doing this for tax purposes only it is likely that even if you negotiated all relevant residency, deemed residency, place of supply rules, this may be considered to be aggressive tax avoidance or evasion.

I'd be surprised if people are doing this legally in other EU countries, and wouldn't base my tax decisions on what other people in other jurisdictions are doing. There are a number of posters here who will tell you that just because other people are doing something, this doesn't make it legal in the eyes of HMRC.

[Malcovitch]

Have you come across the rules on residence and place of supply?

Yes, but as I've said before, I'm trying to find out if it's possible here and if so, how it works. There are people doing it in the Eurozone, after all.

[meridian]

I've come across differing rules on VAT through invoicing in one country while being registered in another.

Have you come across the rules on residence and place of supply?

[Malcovitch]

The answer was technically correct, in that he can do that and pay 20% tax to Estonia. It just missed out the bit about paying full taxes to HMRC as well.

I've come across differing rules on VAT through invoicing in one country while being registered in another.

[Malcovitch]

Wooosh. That is the sound of sarcasm going over your head.

Are you aware it is a minimum aggressive avoidance and probably evasion?

Just trying to find out how all this works... Not sure how a one-word answer can be construed as sarcasm.

[meridian]

Wooosh. That is the sound of sarcasm going over your head.

Are you aware it is a minimum aggressive avoidance and probably evasion?

The answer was technically correct, in that he can do that and pay 20% tax to Estonia. It just missed out the bit about paying full taxes to HMRC as well.

[BrilloPad]

@woohoo, @ northernladyuk I presume you'd have to invoice straight into your Estonian account, is that right? Would it be zero VAT in that case?

Wooosh. That is the sound of sarcasm going over your head.

Are you aware it is a minimum aggressive avoidance and probably evasion?

[Malcovitch]

@woohoo, @ northernladyuk I presume you'd have to invoice straight into your Estonian account, is that right? Would it be zero VAT in that case?

[Malcovitch]

Cool! Thanks for the replies!