Webshop issue

[helenita]

Hi!
Im a resident in Spain but have a webshop for the brittish market, delivering from a warehouse in the Uk. Ive been told in Spain that I cant run this business anymore from Spain and that I have to set up a UK comapany since the products are not delivered from Spain. Does anyone know anything about this?
Grateful for some answers.

 

[Morrjo]

Sorry who has told you this? What is the reason you wouldnt be able to oparate from Spain?

 

[helenita]

The Spanish taxauthorities have told me that. Since the products
isnt sent out from Spain....

 

[The Resolver]

This seems to breach the fundamental 'single market' principle of the EU ie that anyone in a member state can buy from anyone in any other member state. It may be to do with the detail eg do you rent/own the UK warehouse and if so it may be to do with the location of the economic activity for tax purposes (and shows how the tax authorities treat small traders differently than Amazon and Google).

I presume your concern is the tax rates ( although with all their financial problems i would have thought Spanish rates were higher than UK). If you trade as an individual then maybe setting up a Spanish company to import ( check whether they require a Spanish director) is the answer.

If you send me the letter I can run this through some Spanish lawyer colleagues.

 

[kulture]

I would also talk to a good acountant. It may well be cheaper for you to have a UK company to do this, as you might end up paying less tax.