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What about VAT? A turnover threshold in Romania is 88500€ (as quick google search suggests). How on earth are you keeping 90% when VAT is 19% there.

Asking for a friend :)




No need to ask for a friend :P as in other countries mentioned here, VAT for intra community (or in my case non EU / UK) trade there is no VAT. You do have to register as a VAT company but since there is none you charge there is none to pay. My daily rate is 450 GBP (500 EUR more or less) and that's it. No VAT added despite being a VAT reg company. There is nothing dodgy, it is by design. The country benefits by preventing a brain drain and keeping money in the country.


One (LTD or PFA) only has to pay VAT if they invoice Romanian companies. Otherwise, based on what's called "taxare inversă" (reverse taxing), the invoices won't contain VAT, so it doesn't have to be paid either, even if the commercial entity is a VAT paying one.


In my case since I work B2B and my clients are mostly B2B as well then VAT is not really cost to the other side. They just subtract VAT they pay to me from the VAT they need to pay.

VAT is a problem if you work with end users directly, they can't "subtract" it like that.




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