Some of the questions a cross border business should be asking itself are:
Is it possible for an entity buying in Italy, selling outside of Italy and outside the UK to establish a structure to generate all business profits free of tax?
Do we have a permanent establishment in Italy and if so does this mean we have a tax liability in Italy? Or does our business conduct itself in such a way as to negate this problem?
If we are selling from Italy to another EU country should we be registered for IVA or is there a way we can avoid this?
Do we need to form an Italian company and if so how do we do this? Or is there a tax effective and cost effective way around this?
If we generate profits through a company, are the shareholders resident in Italy or the UK and does this impact on the overall tax effectiveness?
If it’s a company, what is the dividend policy, where are the shareholders and how can this impact on tax effectiveness?
Can we operate as a non Italian company?
The management of cross border taxation for companies and other corporate entities is a complex area. However the best advice will, where other conditions are correct, result in tax efficient company and group structures which eliminate burdensome bureaucracy.