hi all
I live in Ireland at the moment and run a website selling kids products to schools and creches. Most of my customers are in Ireland or EU.
I am moving to Lugano in July and am wondering how to manage to keep the business going (the move is family orientated.. not for the business!).
I am struggling with the minefield of importing products from Italy and UK (where most of my suppliers are) and them selling and posting them back to the EU.. but if this all has to go via switzerland it seems to get complicated and costly.
I have a plan and am wondering about the legality of it... I intend (anyway) to keep the business tax based in ireland for 2010 at the very least to ease the transition and may keep it there thereafter if my plan is viable (according to Irish revenue this is fine though i will have to declare income also in Switzerland and can claim it back later under double taxation agreement)
So ... can I rent a stock room in italy (which is 20mins drive across the border) and have my stock shipped there..ie.. still in the EU.. and simply post and courier the parcels back to Ireland / Uk or wherevere the customers are..still in the EU... thus avoiding ALL vat / import / export complications? And either pay tax in ireland.. or in switzerland at a later point.
I am a very small sole trader. I have no accountant and do all my business affairs myself. I have no big understanding of tax etc, other than doing my own returns each year and i dont really have the cash to employ an expert in switzerland to do it for me. I just need to know that i am not breaking the law?!
thanks

It would really be best to get professional advice on this. Ask your current chamber of commerce how the hoops can be jumped: you're surely not the first to face this situation.

You are liable to:

1. Swiss VAT if your business address is in Switzerland. However refund can be reclaimed when goods are "exported".
2. Swiss income and wealth taxes when you are resident in Switzerland.

There is a lot to concider here.

I shall just mention a couple.

If you are selling items of less than say £20 (not sure what figure is) to EC countries, there is no VAT/duties on import. If you were to be based in Switzerland where VAT is 7.6% compared to UK 17.5% and you are supplying retail individuals then you would save 10% if you sell the item at the same price. See http://news.bbc.co.uk/1/hi/business/6504059.stm

The Corporation Tax in Southern Ireland is one of the lowest in the EC and so you may be better off keeping your company officially trading from Ireland. However, as a non Swiss National, you could get tax breaks if you move your company to Switzerland (I think Ticino is a very good area for this).

A lot of foreigners on paper are resident in Switzerland and their business is in Switzerland (warehouse/office), yet all their goods are made abroad but they often use Switzerland to avoid the tax and it looks better selling goods from a Swiss company. I believe they assemble things (basically puts them in boxes) that makes them able to say they are made in Switzerland that gives them some prestige. I am sure you know what it is like dealing with Italians in business.

Would it be easier to get a family member still in Ireland to do all the goods handling for you. The rest you can probably do remotely.

thanks for the replies.. I am still not much wiser on how to proceed.. but I think my best bet is to do as Phil suggested and leave a family member running things for the moment.
My gut instinct is for simplicity so until I hit the big sales I will stay as I am and then either get a stock room in italy for recieving and posting goods.. or work from home in switzerland and just do a twice yearly drive to my suppliers in italy and load the stock in suitcases in the car with the 2 kids on top! and then go weekly across the border to Italy to the fruit and veg market in Ponte Tresa along with half the population of lugano and stop off at Parcel Shop in Como en route!

In all the times i have driven across the border we have never been questioned!