Legal Question in Business Law in United Kingdom

Hi, i want to ask if tax has to be paid on the sale of digital items sold online. E.g. If i set up a ecommerce website selling video game items (legally) and it becomes my main income, would i have to declare everything as a business selling physical goods would? Are there laws exempting fully digital sales from tax? Thanks in advance.


Asked on 6/08/11, 3:20 pm

1 Answer from Attorneys
Arent Lievens Advocates Lievens & Lievens

You have to pay taxes as any other business in the UK.

There are ways of setting up your company differently whereby you minimise your taxes. Setting up a Cyprus company (not off shore): 10% company tax, and something like 10 dividend tax. And because of a tax agreement between the UK and Cyprus, there is no tax to pay in the UK.

Profitable from the moment you would pay ca. �3.000 in the UK

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Answered on 6/08/11, 5:30 pm


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