Facts and figures.
If you are an e-commerce firm or an electronic merchant then you will have thought about, or may now be just about to think about taking your taxable presence into a low tax country, minimising your company’s or groups indirect and direct taxation liabilities.

• Do you wish to boost profits and sales
• Do you wish to reduce your global tax bill
• Do you wish to reduce your group's VAT payments

By 2002 the Global e-commerce market is expected to represent more than 15% of all commerce.

Background.
Strong economic growth and low unemployment in major economies such as the United States has led to difficulties for retailers. They find it increasingly hard to recruit staff of the calibre they require, and there are mounting upward pressures on wages and benefits in the retail sector. This leads to loss of competitiveness, failing customer service standards, and merchandising problems.
E-commerce provides the consumer with a new way to shop, which does not require a visit to a congested, bewildering shopping mall, encountering traffic and parking problems along the way. It is often easier to 'shop around' and compare prices on the Internet. Distribution channels are so well developed in the major economies that next day delivery is expected and achieved cheaply and efficiently. An e-business will normally utilise IT systems to a greater extent than a conventional retailer, and may also benefit from considerable supply chain rationalisation. Efficiency and scalability are the key words to success in an e-retailing business, but tax-efficiency presents the greatest opportunities of all.

Taxation of e-commerce.
Because of its global nature, e-commerce presents great challenges for tax systems. Most tax systems have traditionally relied on the retailer to collect taxes, and then pay them to the taxman. Tax systems are not geared up to collect small amounts of tax from millions of transactions.
In accordance to the OECD model treaty internet sales are taxable in the country in which the sale is effected. If your server is offshore and the payment takes place offshore i.e. via a on-line credit card payment then the transaction will be deemed to take place offshore and thus will be tax resident offshore.
In short, this means ecommerce entrepreneurs will save firstly indirect taxation such as sales tax in the US and VAT at varying rates in the EU, and secondly on direct taxation of profits.

How we can help.
We run an e-commerce centre in St. Helier,  Jersey, where we provide services to:

• E-commerce companies
• E distributors
• E Branches
• Electronic merchants
• IT purchasers for large companies

We provide the following services individually or as fully supported and administered packages:

• Server hosting including branch server hosting
• Offshore and onshore Web site hosting, design and maintenance
• Facilitating Merchant Cards for offshore entities
• International tax planning
• company formation and administration
• multi currency secure credit card transaction for offshore and onshore entities

Our typical customers are:

• Digital Merchants
• Groups with large IT purchasing requirements

Goods. Products (tangibles) distributed from outside the EU into the EU not exceeding a value of 80 Euros per order.

Pricing.

The following prices are guidelines for comparison purposes. If you have a particular request please contact us directly outlining your requirements.

Co-location facilities also available, please enquire.