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Comments
But as usual, there are plenty of loopholes. -.- Simply found a company..
That's a legal way of working around it. But if the company will be used to only claim back VAT, and this will be for unrelated business activities (as a person you don't do any, I presume the company won't do any) that would be considered a fraud.
Not to mention accounting costs for VAT.
Small businesses are exempt from VAT. Since I already receive money from someone (exactly as much as I spend), I would be dumb not to found a company and cash in the VAT difference as profits..
When you're exempt, you can't reclaim.
You also do not have a valid VAT number, so you will still have to pay it.
If you have, and there are some instances where you'll be issued VAT number when you're still not paying VAT (for example if you're not doing enough revenue, but you want to register for MOSS as you have to pay VAT to other countries) you will need to do a reverse charge and pay VAT yourself.
Next suggestion will be that you can ignore it and not pay it.
Well. You can't. We have to report all VAT numbers of our Customers and amounts of transactions every quarter via EC Sales list. This can then be compared and you fined for tax avoidance.
I see. So I will ask not to be exempt, then not have to charge any VAT because there are no European "customers"..
That works, yes?
If the Customers are from outside the EU, yes, you don't have to charge them VAT.
You need to have two pieces of information to back it up though.