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Do some teaching business in Poland, Can invoice customers from UK business?


Michael1  
29 Mar 2014 /  #1
Do some teaching business in Poland, Can invoice customers from UK business?
Could someone tell me if this is posible? I have a unlimited company in UK ('soletrader'). Now I want to stay in Poland for 6 months or more and teach my language to Polish company or a few different companies. It is allowed to do this? I mean to teach in Poland but use my UK business name/adress on invoice for the company I will teach, not a Polish business details on the invoice? This way I maybe pay tax in UK or Poland (I not sure) but perhaps no Zus to pay in Poland and also not need Poland accountanting? Just wondering if this can be posible and of course legal ? Cheers Michael.
dagenhamdave  
29 Mar 2014 /  #2
Which language, out of interest?
OP Michael1  
29 Mar 2014 /  #3
Not English of course.
jon357  73 | 23224  
29 Mar 2014 /  #4
I have a unlimited company in UK ('soletrader').

Aside from the fact that a sole trader isn't a company, the answer to your question is yes, in theory; no, in practice. There are various sound reasons that firms are reluctant to pay overseas invoices if they can avoid it.
OP Michael1  
29 Mar 2014 /  #5
They are which? If companies will pay in arrears, no risk to them... ?
jon357  73 | 23224  
29 Mar 2014 /  #6
It's not long become legal and smaller companies have no experience of this - added to which there are very good reasons for them playing it safe as far as invoices and tax in Poland are concerned.

Just register in PL or do it on an umowa o dzielo.

By the way, if you only stay for 6 months, you'll have barely made the contacts you need to start selling lessons.
three chords  - | 3  
29 Mar 2014 /  #7
In theory, it's possible. But there are several dangers.

1. The companies will simply not agree to such an arrangement.
2. If the Polish Urzad Skarbowy catches you, you'll be in a world of pain.
3. The UK might not be happy about such an arrangement, particularly if your banking arrangements are...interesting.
4. It imposes additional accounting requirements on companies. The EU still isn't a unified market for services, and as Jon357 says, companies do err on the side of caution.

5. Why are you trying to avoid paying Polish tax?
OP Michael1  
29 Mar 2014 /  #8
barely made the contacts you need to start selling lesson

Thankyou, however I already do have them, thats why I think to start in Poland. Problem is it does not amount to generous money and that Zus takes big bite from what I could make.

2. If the Polish Urzad Skarbowy catches you, you'll be in a world of pain.

Why? It is not evadesion of tax, tax can be paid to Polish taxman if this due. Purpose is only to legal avoid Zus and to be self employed not employee of an company in Poland or not only employee but also I want option to do work for a few or many companies later and be self employed with legal invoice for the companies.

5. Why are you trying to avoid paying Polish tax?

Avoid Zus only, if legal. Tax I pay if neccesary to Poland.
three chords  - | 3  
29 Mar 2014 /  #9
Problem is it does not amount to generous money and that Zus takes big bite from what I could make.

Yes. That's because ZUS is providing you with a pension from the money you put in, rather than stealing it via generation taxation.

Why? It is not evadesion of tax, tax can be paid to Polish taxman if this due

You are evading not only social insurance taxation, but also income taxation. As I'm sure you are aware, income tax thresholds are significantly lower in Poland. Standard fine is 200% of what you evaded.

Avoid Zus only, if legal. Tax I pay if neccesary to Poland.

Avoiding ZUS is not legal.
OP Michael1  
29 Mar 2014 /  #10
Avoiding ZUS is not legal.

If is not legal why many foreign companies invoice Polish companies from other countries? They make the business office registered outside Poland, they provide service to company inside Poland. This is common procidure. This is called import of service. My question was is if legal for me, as soletrader UK (and not limited company). You talk all the time about tax evadsion not the legal tax avoiding. Why? You enjoy this finger pointing?
johnb121  4 | 183  
29 Mar 2014 /  #11
Isnlt there an issue with place of supply for VAT? The company could be adjudged to be trading in Poland and if you are here too, management and control emigrate from the UK to PL and make it company tax resident here?

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