VAT and Expenses question

[agavril]

Hi guys, I would need some advice, on 2 topics. I am interested in opening an UK LTD company. I live in Italy and already have the business established here. Basically, I am buying luxury goods from Italy and selling them in SE Asia passing thru Hong Kong. As the taxes are killing me in Italy I am thinking of opening a UK company but I am having trouble understanding how and if the VAT should be billed since the goods will never come close to UK (basically I would be exporting from Italy directly to Hong Kong).



Also, I am traveling frequently to SE Asia to accompany some goods, maybe once a month or once every 2 months, in this case the travel expenses like airplane tickets, hotel, meals, fees for extra baggage, shipping fees and car rental would count as deductible business expenses?



Thanks for any information or advice.

 

[capacitum.com]

VAT or Taxes are operated based on where the goods are being shipped from and stored. So in your case if the goods are being stored in Italy there is no point in opening a UK LTD company.

If you want to store the goods here, say for example in a 3pl and ship the goods from here to SE Asia then you also still do not need a UK LTD company. Your ITALIAN company would register for UK VAT.

I hope this helps

 

[WaveJumper]

Business expenses are just that business expenses sounds like you need to sit down and have a conversation with you (Italian) accountant if that's where you paying your taxes and confirm what the rules are there.