The European Union (EU) is a single market which shares a common sales tax called Value Added Tax (VAT). Possibly the most complicated thing ever devised, it is a legal and accounting minefield but in the right hands it can produce gold.
For traders based outside the EU who want a piece of that vast, rich, single market, locating a business in the Isle of Man brings the Golden Ticket – An EU VAT Registration from a tax neutral International Business Centre.
Goods can be shipped from manufacturers in the Far East direct to our specialist partners in major European hubs like Rotterdam, where they can be held in bond until you find your buyers anywhere across the Union. The buyer receives a Tax invoice, the VAT is correctly accounted for, you get paid without any tax leakage and can repatriate profits from a white list top tier International Financial Services Centre that will not raise any questions at home.
We have had several cases where people from both the Far East and Far West have dipped their toes in the water on this and asked us to set up companies for them on the traditional CSP model, where the day to day operations and administration are provided by us on a time-spent basis.
In a short time they have been so successful that when they found out about the Isle of Man Government financial assistance available it made absolute sense to them to set up a real presence here with their own premises and staff. Clever use of cloud-based collaborative software lets them manage their business from anywhere in the world, but realising the importance of local eyes and ears they appointed us to act as local directors, using our experience in oversight and management of trading operations, to make sure that things are right on the ground.
Non EU Citizens wishing to relocate to the Isle of Man should read our Practical Guide to Isle of Man Immigration
If you are reading this from outside the EU, but would like to test the water in the European Single Market, please get in touch with David Parnell to see how we can make that happen.