EU VAT Dropshipping Deep Dive 2021 | EU VAT changes in July 2021 and impact on China fulfillment

hi everyone, this is daiya from e-com ops. this video is going to be a big update on the eu vat changes coming up in july of 2021, its impact on dropshippers or anyone else fulfilling directly from china into the eu. this was done in a partnership with an accounting firm, getfreetaxcom, who are not only experts in vat accounting but also how it impacts drop shippers in china fulfillment into the eu, and we took great pains to make this as complete, accurate and relevant as possible. however, please note that there are possibly going to be changes going into july and afterwards, so definitely keep an eye on this channel and our facebook group for any relevant updates and i'll keep you guys in the loop. and, by the way, if you guys are interested in the previous uk vat changes, click below. we have a link below to a guide previously made. let's get started, alright. so before we get started, i do have to read through a little bit of a disclaimer first. the information contained in this video regarding the new vt developments in eu is for general guidance only. the application and impact of law can vary widely based on specific facts involved. the information is provided with the understanding that the authors and publishers are not hearing engaged in rendering legal, accounting, tax or other professional advice and services. as such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisors. before making a decision or taking any action, you should consult a get free tax or equivalent professional. i do want to emphasize, though, that this information is just informational for you, and we really suggest that for something as serious as vat, tax and accounting, you really should consult with a professional. we recommend get free tax. we do not get any referral fees. this is not a paid endorsement. we have toked to countless accounting firms on vat and most of them do not really understand how it impacts china fulfillment and drop shipping, and they're one of the first ones that actually do, and that's why we're working with them and that's why we really strongly suggest, if you want to work with an expert, check them out. link to them below, and i'll tok about a little bit more at the end of the video as well. first a a very brief primer on what is vat actually and and how is it calculated. so, value-added tax is a system of indirect taxation on goods and services to finer consumers is collected accumulatively at each stage of the supply chain businesses charge vat on their sales and recover vat on their purchases and expenses. i'm not going to go through this graphic here, but here's an idea of how it actually might work in a traditional supply chain. now, in some ways, indirect china fulfillment. not all of this applies and we'll tok about some of that later. the other thing to know about the vat rates is that they actually vary across different countries. in europe they range from 17 percent to as high as 27 percent, depending on the country. you know. for the sake of easing legit, assume that a general vit is around 20 or so. all right, so now let's start toking about the changes, and first we're going to tok about some of the before and after and the implications for you. so the first one i want to tok about is: where is vat actually assessed? so currently, vt is assessed at customs through the import process going into the eu. let's just use a traditional china supplier using unixpress as an example. so previously vat was assessed at import and unixpress and your china supplier actually helps navigate that process and the value of the order itself is actually declared by your supplier or agent. now this is very, very important and we'll tok about that a little bit later, but the point is, as this says, that customs and at least unixpress, and currently your china agent, helps you navigate this. now, after the changes in july 2021 in the eu, the vat is going to be assessed at the point of sales. it's already happened in the uk and it's going to be happening in the eu. uh, this means that it's going to be assessed at the storefront level: what your selling price is, what your retail price is, and i think you can start to imagine why this is going to start to make a huge difference, because your sales price would be much higher than what your supplier declared or charged you. the other big change that paired with the previous one, that just makes this really big, is that before, there used to be what's called a low value exemption on import. so, depending on the country within the uu, this threshold was anywhere between 10 to 22 euros. now, anything under this threshold, uh, it was basically not subject to vat at all, and what happens currently is that most of your suppliers, whether it's aliexpress or your agent, they're going to declare a value on the product, by the way, not like the product plus shipping, which you might pay for, but on the product value itself. they're going to declare something under the threshold, and rightfully so as well, because the vast vast majority of drop shipping product- the product itself- is actually under this threshold. they declare nine euros whatever it's under the threshold and it goes through without any considerations for vat at import. after the changes, however, this low value exemption is removed. so that means no matter what value it is, it is going to be assessed. vat is supposed to be subject to the vat as long as going to the uu and going to a eu customer. now, paired with the previous change on vat being assessed at point of sales, this is where you see it starts to be a very huge deal. let me give you just an example. right, if you had an example product that you're selling for 50 euros to your customers and your uh product value, the actual product value itself, might just be 10 euros currently, your supplier is going to be just declaring 10 euros and it goes through scot-free because it's under the threshold and there's no vat calculation at all. afterwards it's assessed that point of sale, so it's going to be assessed on that 50 euro retail value. so you can imagine 20, let's say, v80 on that 50 euros. that's ten dollars, and that is a huge deal. tiknically, you're supposed to collect vat and then transfer that to the vat office. however, the store owner is responsible for the vat, no matter if you collect it or not. now, one of the things that uh, some of you might have heard a lot about is this concept of the uh one stop shop or the oss or the ioss, and there is this question about this 150 euro threshold. where does this matter? what does this mean? first of all, no matter what the value of your order is, whether it's under, under 150 euros or over 150 euros, you're still obligated to collect and pay vat on that. if you're not eu-based and is 150 or under, you use the ioss to report and collect v80, and over 150, or if you're physically based in uu, uh, as a seller, you use the oss. so, really, this doesn't really make that much of a difference in what is actually due. it's just a different mechanism for collection. all right, so now let's tok about how vat is actually officially collected, and it really depends on how you're actually selling online. the collection really differs, uh, depending on if you are what's considered a online marketplace or electronic interface, if you're, for example, selling through or selling as amazon, ebay, wish or aliexpress. these platforms are supposed to collect vat on your behalf and actually within the uk, vat changes already. these platforms have already collected, uh started collecting the vat even for third party sellers. now, as direct sellers- i assume most of you are- if you run a shopify store, for example, you are personally responsible for collecting and remitting the vat. and again reminder to you that it doesn't matter if you want to collect view to you or not, you're still responsible for paying the vat. a common question i get is: how is shopify or woocommerce or big commerce? how are they dealing with vat collection or not? so the thing about these platforms le

New EU VAT rules are here! Check out VAT changes on dropshipping and distance selling

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VAT 2021 | IOSS Explanation & Solution

Hi guys, this is Bella from CJdropshipping and hopefully today I can help you to demystify the whole VAT and IOSS situation which have been taking place since July 1st. I understand it has been a bit confusing to a lot of dropshippers, so today I'm going to explain these two concepts again and demonstrate how you can register for IOSS and set your IOSS declaration on CJ. If you like this kind of useful tips and info, don't forget to subscribe our channel and turn on the notification bell so you won't miss out. Let's use an example to make the concept easier to understand. If the VAT rate is 10%, a farmer sells 1 bag of apples to a baker for 70 pence and the baker made a jar of apple jam and sell it to the customer for 5 pounds. During this process, the baker paid 77 pence to the farmer, in which 7 is the VAT fee that got paid to the government by the farmer. When this apple jam got on the shelf, the customer need to pay 5.5 pounds for it as 50 pence, in which is the VAT fee, and the baker will pay 50-7- 43 pence to the government - this is VAT, a consumption tax placed on a product whenever value is added ar each stage of the supply chain. IOSS, the Import One-Stop Shop. IOSS is the electronic portal businesses can use since July 1st 2021, used to comply with e-commerce VAT obligations on distance sales of imported goods. So what is the IOSS for? what is the IOSS for? The IOSS allows suppliers selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities, instead of making the buyer pay the VAT at the moment the goods are imported into the EU, as it was previously the case. So when it comes to selling to the EU, there are two occasions: When the order value is above 150 euros, the recipient will be required to pay VAT and the customs duties. When the order values less than or equal to 150 euros, there are three options for CJ users to set the declaration. In this case, the recipient will be required to pay VAT in order to complete the customer clearance. otherwise, the parcel will be detained or destructed by the customs. If you have your own IOSS ID, you can link it to your CJ account. The operation is very easy. just log in your CJ account first and then find my profile, click in and here at the end we can see this declaration setting. So choose the declare with my own IOSS from the IOSS option list. We highly recommend you declare with you own IOSS which is valid and is linked to the destination country in the EU. So how to register for your own IOSS? A business can be registered on the IOSS portal of any EU Member State. if your business is not based in the EU, normally you need to appoint an EU-established intermediary to fulfill their VAT obligations under IOSS. If you are not from an EU country or simply don't have your own IOSS, you can declare with CJ's IOSS ID. So declare with CJ's IOSS ID is also very easy. the same operation as just now. you log in first and then you click profile, get into the profile page and find declaration settings. here choose declare with CJ's IOSS. declaration with your store order amount is recommended. you'll be responsible for the relevant riscks if you choose to declare with CJ's order amount. here click edit and choose the destination, and that's it. However, CJ's IOSS ID will not be applicable for orders valued above 150 euros. Okay, that's pretty much all for today's content. if you still have questions about VAT or IOSS, please leave them in the comment below or if there is anything you'd like to know or to watch, always feel free to let us know your need. Here is CJdropshipping Training. if you'd like to grow your online business with us, don't forget to subscribe and give us a thumb up. thank you for watching and see you next time.

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EU VAT July 2021 And Dropshipping | What We Know About the Changes and Impact on China Fulfillment

hi everyone. this is daiyou from ecom ops. today i'm going to tok about something that folks have requested me to tok about, and that is: how are the upcoming eu vat changes in july of 2021 going to affect drop shipping and kind of fulfillment for e-commerce store owners? now, i will emphasize that there are a lot of uncertainties still. back when the uk vat changes happened back in december of 2020, there were uncertainties up to just a few weeks before it was enacted, so i totally expect that things are going to be a little bit uncertain right up to the point when it actually happens now. so there's going to be a short video, really more toking about what we do know already, what we don't know- but will continue to research in more detail in a future video- and also my thoughts on how this might impact you as a dropshipper or ecommerce store owner fulfilling from china. if you want to check out the uk vat video that happened back in december 2020, uh, definitely check out the link below. there's going to be a lot of similarities, but probably a lot of differences as well, so take that with a grain of salt as well. this is only going to tok about, uh, introduction of what we know already and a much more detailed video will come later. so let's go. well, we know already there's going to be three major categories of changes coming in july of 2021 with the uvat. first is the removal of distance selling thresholds for the v80 and also the introduction of what's called the one stop shop or the oss. second is going to be the removal of the low value import exemptions, uh, which is actually very, very important to tok about that later. and the third is going to be having marketplaces deemed as the responsible parties for collecting vat, and we'll tok about all of these next. so the first category we know already is the removal of the distant threshold and also the introduction the one-stop shop. so the removal of the distance threshold. so this is compared to: currently, depending on the country, in the eu, there is a certain threshold that you don't have to be responsible for vat. if you come under that threshold for sales in that country, and it's somewhere between, you know, 30 000 euros or 100 000 euros, depending on the country itself, they're completely removing that. now, that is, uh, not a good thing, because previously, uh, if you do not sell above that threshold, then you're just not worried about vat at all, but now, even if you sell any sales in any of these countries, you are tiknically responsible for vat. now the second part of this change: it's called the one-stop shop. this basically just means that, as opposed to having to separately file for vat filings in each individual eu country that you're responsible for, there is this method to do it only once. however, that being said, you still have to be responsible for the varying vat rates for each country that your sales are going to, as defined by your customers shipping address. it does make it somewhat more convenient for you- if you're flying for vat anyways, you might as well have a more- uh, streamlined process as opposed to finding a whole bunch of different countries within the eu. but i personally think it's kind of neutral. i mean, honestly, i think it's kind of like the eu vit office is making it easier for you to file so that they can more easily collect vat. it doesn't really change anything about your rates. the distance threshold is still removed, so you're responsible for vat everywhere now, and i guess it just make it easier for you to file and therefore pay your vat to the relevant offices, and you only need to do it once and now if you are actually outside of the eu, it's a little bit more complicated. there is something called the ioss import one stop shop. um, we don't have- uh, we're not going to tok about too many details in this video. that's how the scope of this, but basically it's very similar to the one-stop shop concept. we only have to have one filing. however, there's an additional step that you have to register in a specific country within the eu first. now this second change, which is removing the exemption on low value imports and also moving the calculation of the vit 2 point of cells. this is going to be the biggest impact on a lot of folks out there, especially if you're drop shipping from china. so previously, what would happen is that if you are drop driving from china, your supplier or aliexpress, whoever they can declare under a certain value under 22 euros, and all of those go scot-free in terms of vat and uh, it's it's completely in their right to do so as well. i mean the vast majority of the time, no matter how much you sell your product for retail, uh, your product price is most likely actually under 22 euros or far under 22 euros. so previously you might have suppliers or expert sellers declare, like you know, two euro value, five euro value. this is the reason why- and no one's responsible for vat, however, in these changes coming in july 2021. after that, this exemption is completely removed. so you're responsible for vat on everything, uh, except up to 150 euros, and after 150 euros at above that value, that's where it starts getting triggered as import taxes, which is a little bit outside the scope of this discussion. we'll tok about it next time in more detail as we find out more of how that gets dealt with. and another incredibly important change as part of this is that vat now, or at least as of july 2021, will no longer be declared on the value of the import, but rather it will be assessed on the point of sales. now, what that means is that previously- we're currently before july- your supplier is responsible for declaring the value, and this is where they they're very safely able to declare under the threshold, even if your retail price is higher. however, after this change, they're saying that the vat value declared has to be on your sales price. so you know, for example, if you're selling a product for 30 euros and previously you would be able to have your supplier, maybe your supplier product causes five euros and your supplier would be able to declare five euros, you know, go under the threshold and so no vat at all. however, after these changes, that same 30 euro sale first of all gets charged v80 and it gets charged at that entire price, so it will be the v80 on the 30 euros. now this is obviously pretty big right because this essentially clan closes a loophole before and currently, where you can have a lot of low value goods going to the uu and no one has to worry about any vat at all. and, honestly, this is the biggest reason why they are doing this: because the uu vit offices. they want to close this loophole. so, unfortunately, i mean the reality is that if you're selling to the eu, just like to the uk right now, you're responsible for vat on all of your sales, and not only that, on the sales price that you charge the customer, as opposed to your import price. i do want to make a note about how the value of the declaration is actually handled so by the ruling. they're saying that the value is declared based on the value of your sale, minus any transaction fees and any shipping and anything else. however, these things have to actually be placed on your customers invoice in order for you to be able to deduct those. this is actually a little bit of an annoying thing, because most of you- uh, dropshipping- are probably not charging shipping. you're charging free shipping, so you don't have shipping separately in the invoice and therefore, by this ruling, the vat actually has to apply to the entire sales price. now if you were charged shipping, then you can actually remove that shipping cost from the vat calculation and obviously you'll be responsible for a lower vat rate. however, obviously that means you actually have to charge shipping, which i i don't actually know exactly what's going to be the right balance, because obviously charging shipping is going to- uh you know- affect conversions as well. so this is something that is kind of tricky and you have to manage. now, the third category of changes is that.

How to do Taxes in Dropshipping- Complete Guide for 2022

all right. so in this video we're going to tok about how to do taxes with drop shipping. okay, it's a really big topic and it's really important to understand that. it's actually very important to understand this topic only after you start making sales. so if you're just starting out, if you have absolutely no idea about drop shipping, if you never have ran a store yet, don't think about that at all. okay, there's people who figured it out already. so it's possible to do it properly and you shouldn't worry about. all right, this is not going to work out for me and i have to know all the legal things before i even get started. if you haven't gotten started yet, then, number one, this video is not for you. and number two, don't worry about all the tik stuff. okay, at some point after you start making sales, you should actually start worrying about it, because it's actually pretty important to the property. so here we're going to tok about how to do it properly and what to what to focus on. all right, so the very first thing i have to mention is i am not a legal accountant, so i cannot officially advise you to do anything, so this video is going to be only based on my experience. don't take this video as a legal foundation. you should get a accountant or a person who knows what they're doing, all right. so the number one thing for taxes is: it's going to be pretty easy to to do all the tax statements and to do everything properly. if you have collected all the receipts, if you have done everything properly, if you know how much profit you made, how much loss you made, how many fees you paid, how many refunds you had, all those little things will be important and they're gonna screw everything up for you if you don't do it on a consistent basis. everything which goes into accounting is important to understand. that you should not do it in the very end and, with and like with everything, you should constantly do it as a process, okay, and at some point after you start making decent money, you can have a person who's going to calculate the things for you, and it's going to make things much easier for you, okay. so, number one: do everything properly. understand how much expenses you had, how much profits you made. all of that is going to be crucial to make it proper. and also, every single expense has to have a receipt, okay, and this is a thing which i've learned the hard way. in the beginning. i didn't collect any receipts, i didn't do anything. and what is really important to do and what's also pretty easy to do: every time you pay something, it doesn't matter if it's facebook, it doesn't matter if it's your supplier, it doesn't matter if it's a shopify app or shopify subscription- just have a folder where everything is going to be in one place and you do understand where the receipts are okay, and then, if that's already going to be ready, you're just going to give it to the accountant and everything is going to be done so much easier. the other thing is you need to have an invoice for every single person who bought from you. okay, so there's tons of softwares. in germany, we use sevdesk and it's basically a shopify app which makes invoices for every single customer which bought from you. okay, so it's going to be automatik. you don't have to do it manually and it's pretty simple to use, to set up. however, you do need to have it because if people from the government or the people who get your taxes, um, will want those, those invoices, they will need them for sure. all right, so you, officially, are obligated to have them at some point if somebody asks whenever, at a random time, that can actually happen like three years down the line, and they want receipts for 2019, okay, and then you're going to be in big trouble if you don't have that nice organized folder and yeah, that's basically important. also, two very specific things i want to tok about here is number one: get one supplier, and it's going to be so much easier if you only work with one supplier. i added this crucial mistake to keep working with aliexpress and with like a bunch of different suppliers for the first like three months of me doing well in dropshipping- okay, and that was a huge problem later on in accounting, because aliexpress is a pain in the ass for accounting and it's going to be a really, really annoying process. if you had like 20 000 orders, all right, so it's going to be a big, big problem. if you do not like real numbers on aliexpress. it's going to be annoying. so what you should have instead is one agent which is going to be an all-arounder. that person is going to have all the products you're selling and he's basically going to be the supplier which you go for always, okay, and later on you have maybe one more warehouse which you also pay, and that's it, but it's important to have this overview and not have 10 different suppliers, because it's going to be so annoying. and i had this huge issue and it took me like a month or so- and we were basically three people which were full-time working on this- to me- to work it out and do it properly, because it was just such a mess because i didn't care about anything. i didn't do anything properly and after that i felt it. so now i know it should actually be done in the in the first place and you shouldn't wait for it so long. however, keep in mind that accounting feels very productive, but in reality, it's not productive at all from a money making perspective. okay, so you're not going to make more money through accounting. however, it's just going to make your life easier in the long term and also it's going to help you not lose a lot of time at one point, because at that point you're not going to be able to make any money if you don't have any time investments at all for anything else than this accounting thing. okay, so keep this in mind: that accounting is important. you should do it one by one. however, do it only in your free time. after all, the really important things are done, okay. so all the money making activities should be always a priority, no matter what it is. and after that, after all of this is done, the next thing: in your free time, you should actually focus on the accounting. and if you do 30 minutes per week of accounting, you're probably going to be good, all right. it's like 30 minutes per week, one hour per week max, and it's gonna be off all right. however, if you don't do that for like four or five months, it's gonna be a really big problem, and i cannot emphasize this enough because it was such a huge issue for me personally and i had a really, really bad experience with that in a way like it's. it was just insane, okay. and also, if you hire freelancers, you need to understand that those freelancers- if you don't hire them through upwork or through a platform where it's super easy to get the, the receipts and the invoices, then it's going to be also a problem. if you just privately hire a person, they have no idea how to do anything and you don't really ask them for receipts and for invoices, they're not going to give them to you. and the same thing goes for the suppliers: if you don't ask the supplier for a receipt and an invoice. they're not gonna give it to you, okay. they're not gonna actively go to you and send you everything. you need to go to them and ask them: hey, every time you send this, please give me this as well. and if they don't, you have to constantly remind them, put it in folder, etc. and the last thing i want to mention here is facebook ads. so there are scenarios where you lose access to a facebook account and then all the receipts are gone. okay, so that can be a real issue. and if you have some kind of really strong block on that facebook account, you're not going to be able to access any receipts and any invoices and any anything basically at all. okay. so it's really important to keep that in mind and constantly download those receipts- obviously don't be paranoid about it- and do it every day. you basically have to have a report with all the things which facebook- uh, you paid facebook- and you have to have those receipts in a separate folder. it's super simple to g.

Dropshipping Taxes in Europe The Truth!

this video. i want to tok about taxes in europe. it's a topic that nobody wants to tok about. i'm probably the only one who toks about that. i already started to tok about it back in the days and people want to give me so much money because, like, tax lawyers are saying one thing, people in the community are saying a different thing and nobody really knows what to do about it. and i tell you honestly, like tax lawyers will always tell you something different. they will always tell you that the most politikally correct thing that is possible, and i can give you an explanation why that is so. if you got a tax lawyer who is based in europe, he has to follow certain regulations. if he does not, and he cannot subscribe that right. like if you get the tax lawyer and he tells you something, he's basically liable for his advice, so you're able to sue him if it does is not correct. that's why a lot of lawyers are very careful and only the really good lawyers that you need to pay like a lot of money for they will give you, like the, the biggest insights, because those are the ones who can take the risk, because obviously you pay them more money and therefore they do more research, they have a bigger team and they find those like little hacks, the niches. we in my team we already found those niches through the hacks. we paid tons of money for different lawyers, we know how this works and i can tell you how the drop shipping thing in europe looks like currently. so, um, if we are toking about taxes, we need to differentiate between three taxes. you have to company taxes, you have the vat taxes and then you have the taxes for distribution. so dividend taxes- um, you pay also sales taxes. you pay employee taxes for your employees, but i guess the most, the two most important ones, is the company capital profit tax and the vat. obviously, depending where you live, you can also reduce the dividend tax. so in this video i want to focus, like in general, about taxes in europe: how to compare to the rest of the world, how you can go around it, how you can minimize that, and i give you some actually insights: how the scene is looking right now and what top drop shippers are doing. so don't skip forward right like, listen to everything what i say in the video, because everything is important. so let's start with the income tax: the income tax or capital tax for your company. it's basically depending on the region where you live. if you live in germany it's 30. if you live somewhere rest of europe it's between nine percent till thirty percent. uh, hungary has the lowest one with nine percent, and then you have france that has 25 percent, the uk has 20, and so on and so on. this one you can reduce if you have a bunch of losses on the other hand. so every time you go out for dinner you can charge it at business expense. if you do a trip somewhere, you can also charge it as business expense. you know, when you had, like a trip to dubai and even though you just went there with with your girlfriend, or you just went there for fun, you know, to smoke some hookah in the desert, then you can basically charge that as a business expense. like it's pretty common in every county, it's pretty similar everywhere in europe and you shouldn't focus too much on that. i would say, like, just get all the builds and then afterwards give it to a bookkeeper and you will type in everything for you. and then, depending on the region, maybe you will have after toks, maybe your text advice will tell you some things you can not put as losses, depending on the jurisdiction, and then you don't do that. but in general it's really easy. you don't have to think much about it. if you want to minimize that, you just collect all the builds, you save them somehow. maybe get like a cabinet where you have like the builds per year per company. you save them everything there. if it's not digital, if it's digital, you have like one folder where you save everything and then also set up like a accounting software where you can put all the information directly inside. so the question now comes like: oh, can i open up another company where, like the inc, the capital tax is lower? so can i set up a company in dubai and hong kong where the capital tax is basically zero to go around that. and here's the thing about europe: in europe you have this rule called cfc rule, which stands for controlled foreign cooperation, and there's basically rules about that. if you have like a offshore company somewhere else and you physically live in a country in europe that has those cfc roads, you can look them up, just type in cfc rules and then your country, and then you'll get likely clear understanding what it is. you basically have to follow them and what they usually mean is like if you have, like, an offshore company, there's no employees, there's no need that the company is somewhere offshore, like there's really no physical need. you know like a physical need would be, for example, that you register a company somewhere and this company actually sells in this country and you can only get certain payment processors if you are registering a company there. so, for example, if you sell in africa, most likely it will be accepted because you need to register company there. and also, usually there are rules that says: okay, the company has to pay a certain amount of profit tax and if it does in this jurisdiction it's not considered an offshored jurisdiction and therefore your tax authority will probably not say anything against you. but most likely you just want to register somewhere, like in hong kong. they shout: you know you can have a uk llp, us llc, and it's also like a viable option. pay zero percent, but you, if you still love your new country, there's little to go around it. the best thing that you can do in this case is either you get out of the country that you're in and get into a country that has no cfc rules, or you just travel without, like you, dear ricketts, and you just travel um the whole time. you don't spend more than six months in any country. or you set up actually a company with substance in another country. you set up a manager there, you hire some employees there, you do all the contracts there, you set up the bank account there and so and so on. it sounds really easy, but it's more more difficult, to be honest, to do the setup. i believe the easiest setup is actually to just leave the country, because there's some many better jurisdictions where you can do business and grow. like every big person that i know, they don't live anymore in like their home country. it's maybe only not true for us citizens, because they are basically taxed on their citizenship, so it doesn't matter where they look. they can live in dubai, they can live in bahamas. they still have to pay the same taxes. for them it's like no question. all the business stays in the us. they travel just for fun, but in europe we are not so far. so, like all the big drop showers, they are living outside of europe or in some jurisdictions in europe that are okay with that. so switzerland is a good option. you pay less tax on everything, you have no cfc roads. then cyprus also doesn't has any cfc roads. you see a bunch of dropshippers living there. then ukraine was a viable option, yet cfc rose but the government wasn't looking too much on foreigners. malta is a good option. so, yeah, to sum it up again like it depends on jurisdiction how much capital profit tax you pay and you just have to look up how much the, how much it is per country, and you have to look up also the cfc roads in your country and then based on that, you can do the decision where to do that. the other question that remains is about the vat. so there are certain rules in europe that says if you have to, if you're reaching a certain threshold in europe, then you have to pay vat in this country. for example, in the case of germany, it's around 100 000 euros that you have to reach in revenue in total. right, it's not just for a month, it's not for one year, it's like in total. so, or it was a per year, i'm not sure. but basically if you reach that, which is actually quite easy to r.