Hi,
I'm a US citizen working in the US as an IT consultant. Recently, through a friend, I was approached to do some consulting for a German and an Italian company. The work would be in the form of strategic advice (a "non tangible" product) that I would give from the USA. The rub is that these companies want to be invoiced from an EU business (with an European VAT id, etc) not from the US.
(1) What is the simplest way of invoicing a Euro company from Europe?
If I understand correctly, I could establish *one* UK limited co, from which I could bill for *all* future EU work. If it matters, the proposed UK ltd would have no employees at all and no UK clients.
(2) What would be the tax implications of setting up a UK ltd?
Would I collect VAT and remit it to HMRC? Would the UK company's turnover be taxed according to company tax in the UK or would the revenues pass through untaxed and I would then pay tax on them in the US?
(3) Would it make any difference if the director and share holder of my proposed UK ltd were me (a natural person) or my US company through which I trade?
Any pointers to useful documentation would be much appreciated, as well as recommendations for accountants who understand this kind of situation. (I prefer DIY, but I recognize that paid advice is certainly useful for bootstraping the process!)
Many thanks.