Spanish e-comerce with a UK limited company - any advice ?

[LindnArden]

Hi there (almost) newbie here We are looking to set up an online store in english and spanish to sell product in Spain but via a UK limited company. I was wondering:

a) is this possible, or do we need some kind of legal entity in Spain ?
b) obviously we will need a euro bank account, but does it need to be a Spanish bank account ? Probably not I guess, my concern is that the front end on the payment processing / merchant services has to be in Spanish
c) are there local Spanish VAT issues as we are paying VAT on the goods bought in the UK anyway ?

I look forward to hearing any advice or recommendations on Spanish banks / payment systems / office services etc.

cheers,
Kevin

 

[ShortCouture]

Looks as though you will essentially be a UK based company shipping to Spanish customers. You will presumably price and charge in euros -or allow the Spanish customers to see prices in €. Local tax issues are the customer's problem I believe. The item is sold in the UK and shipped overseas so you will not charge VAT to them.

I would say be careful when choosing your payment gateway - I know that a lot of international transactions fail because the payment systems fail. Not sure at what point they fail but best to have a good discussion with the large payment gateway providers.

I don't beleive that you need a Spanish bank a/c.

As you are actually aiming at the Spanish market (rather than a UK ecomm company that gets the odd international order) I would advise talking to HMRC -or at very least a good accountant as to how you pay/charge/claim the VAT.

Yes as you say it would bge wise to have all the payment pages in Spanish also -avoid any misunderstandings.

If you want an experienced and good translator to do the site I can point you at one that has 30+ years exp and has done the Crown Estates guide books and tonnes of stuff etc.

 

[grantex]

The item is sold in the UK and shipped overseas so you will not charge VAT to them.

Not so, unless they have a Spanish VAT number that you will then put onto your documentation.

If you are selling to individuals, as long as VAT is paid in the country of origin, then they will not have any further liability for VAT.

Are you selling to individuals or to companies?