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Old 17.05.2007, 13:42
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Updated question regarding forming my business

After a while being out of town, i am glad to join this forum again, and big thanks to all the people that gave tips before.

I have an updated info, and would like to present my idea again, maybe some new people around here goz some relevant info:

Along with a partner, we are in the process of setting up our GmbH , kanton ZH.

Model - set up an Ecommerce store, to sell products from the home decorating market.
Products price range - 6 - 30
Market target - 27 EU states + Norway + CH
Biz model .- we have teamed up with the German distributor of these products. Customers will purchase online, once payment approved by online gateway, we will send the order to the Munich based company, which will be our logistics center. With each order, an invoice from our company will be sent to the customer, and at the end of the month, the German company will issue us one invoice with all the products ordered, without VAT - as they got a number and we will as well.

The PROBLEM - As a Swiss GmbH, that has an online store, and ships from Munich to 29 countries (in theory), what will be our legal VAT form? will we need to pay for each order the 7.6 swiss VAT? and thats it? Or will we also need to have a deal with the German authorities?

So far we could not find an accountant that will deal with these issues, so if anybody got a good English speaking accountant firm in Zh/Zollikon/Kusnacht/Meilen that could be hired for this, along with normal accounting services for Gmbh, this would be great.

And if anybody got answers for the above, will also be great.

Thank you very much and have a great weekend,
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Old 21.05.2007, 14:06
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Re: Updated question regarding forming my business

Quote:
View Post
After a while being out of town, i am glad to join this forum again, and big thanks to all the people that gave tips before.

I have an updated info, and would like to present my idea again, maybe some new people around here goz some relevant info:

Along with a partner, we are in the process of setting up our GmbH , kanton ZH.

Model - set up an Ecommerce store, to sell products from the home decorating market.
Products price range - 6 - 30
Market target - 27 EU states + Norway + CH
Biz model .- we have teamed up with the German distributor of these products. Customers will purchase online, once payment approved by online gateway, we will send the order to the Munich based company, which will be our logistics center. With each order, an invoice from our company will be sent to the customer, and at the end of the month, the German company will issue us one invoice with all the products ordered, without VAT - as they got a number and we will as well.

The PROBLEM - As a Swiss GmbH, that has an online store, and ships from Munich to 29 countries (in theory), what will be our legal VAT form? will we need to pay for each order the 7.6 swiss VAT? and thats it? Or will we also need to have a deal with the German authorities?

So far we could not find an accountant that will deal with these issues, so if anybody got a good English speaking accountant firm in Zh/Zollikon/Kusnacht/Meilen that could be hired for this, along with normal accounting services for Gmbh, this would be great.

And if anybody got answers for the above, will also be great.

Thank you very much and have a great weekend,
Quote:
View Post
After a while being out of town, i am glad to join this forum again, and big thanks to all the people that gave tips before.

I have an updated info, and would like to present my idea again, maybe some new people around here goz some relevant info:

Along with a partner, we are in the process of setting up our GmbH , kanton ZH.

Model - set up an Ecommerce store, to sell products from the home decorating market.
Products price range - 6 - 30
Market target - 27 EU states + Norway + CH
Biz model .- we have teamed up with the German distributor of these products. Customers will purchase online, once payment approved by online gateway, we will send the order to the Munich based company, which will be our logistics center. With each order, an invoice from our company will be sent to the customer, and at the end of the month, the German company will issue us one invoice with all the products ordered, without VAT - as they got a number and we will as well.

The PROBLEM - As a Swiss GmbH, that has an online store, and ships from Munich to 29 countries (in theory), what will be our legal VAT form? will we need to pay for each order the 7.6 swiss VAT? and thats it? Or will we also need to have a deal with the German authorities?

So far we could not find an accountant that will deal with these issues, so if anybody got a good English speaking accountant firm in Zh/Zollikon/Kusnacht/Meilen that could be hired for this, along with normal accounting services for Gmbh, this would be great.

And if anybody got answers for the above, will also be great.

Thank you very much and have a great weekend,
This is quite a simple question really. The company that is distributing the goods are committing the offenses of USt (and potentially Zoll) Hinterziehen. ie Evasion of VAT (and Duty). The offense of evasion of duty payments is by implication of the main offense of Evasion of VAT and is only potentially there ie depending on what you are claiming.

Why is this so. Imports of goods into Switzerland are free of EU VAT on crossing the border into Switzerland and subject to duty and VAT in Switzerland. The duty part is normally waived on objects imported from the EU with some exceptions. VAT is only exceptionally waived. If the goods do not enter Switzerland then they remain subject to VAT at a point within the EU. If the goods are being sold to an EU VAT registered company then they can claim a VAT free transaction. They however are liable for the VAT in the place where they are located on all the sales they have within the EU.
VAT registration in Switzerland is not part of the inter-community VAT legislation. ie a Swiss company is automatically exempt from VAT once the goods enter Switzerland. But it is an offense (false representation ie fraud) to claim VAT on goods that never left the country potentially also the warehouse.

I would suggest this is a variation of Carousel fraud. You can find plenty on the internet about this. In particular the German company will be taking the major part of the can for this. You will only be a participant in an illegal scheme. Note also you will not have any need to pay VAT on the transactions in Switzerland. The whole of what you are doing is VAT free. Until of course the goods enter Switzerland to Swiss customers where you need to be very careful.

The chance of getting caught in Germany is relatively low. The chance of getting caught in CH and therefore exposed in Germany is however significant.
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