Hi there, I have read all the threads regarding tax and business issues and I did find some hints but not a straight forward answer to my confusions. My case is unique and I need a satisfactory answer to the situation.
I am a Pakistani and living and working under an employment contract in Portugal. I have my drop-shipping store (about to start) which I will be running from Portugal. In Portugal if I have an employment contract and I cannot register any business with that (correct me if I am wrong). However I have registered my business in Pakistan. But my PayPal and stripe accounts are associated with my Portuguese bank account (bcz these services are not available in Pakistan). I am selling my products to US customers. Now when I get my earnings in my Paypal, I plan to send them directly to Pakistan in my company's account using Xoom rather than withdrawing to Portuguese bank account. So my confusions are,
1- Is it legal to work in this way, like working as an employee in Portugal, but simultaneously owning and running a webstore with a Pakistan associated own company. It's just as if I have a business in Pakistan. I can have, isn't?
2- Can I use Portugal based Paypal for my earnings to Pakistan based business. (Of course I will be paying my income tax in Pakistan not in Portugal)
3- Do my PayPal earnings can trigger tax authorities in Portugal?
4- I don't need to charge Sales tax on US customers, right?
5- Does it really matter from where the website is run? The company is registered in Pakistan but the website is being run in Portugal.
6- Anything more if you guys can see or advice in this scenario?
I will be grateful for your help, thanks!
I am a Pakistani and living and working under an employment contract in Portugal. I have my drop-shipping store (about to start) which I will be running from Portugal. In Portugal if I have an employment contract and I cannot register any business with that (correct me if I am wrong). However I have registered my business in Pakistan. But my PayPal and stripe accounts are associated with my Portuguese bank account (bcz these services are not available in Pakistan). I am selling my products to US customers. Now when I get my earnings in my Paypal, I plan to send them directly to Pakistan in my company's account using Xoom rather than withdrawing to Portuguese bank account. So my confusions are,
1- Is it legal to work in this way, like working as an employee in Portugal, but simultaneously owning and running a webstore with a Pakistan associated own company. It's just as if I have a business in Pakistan. I can have, isn't?
2- Can I use Portugal based Paypal for my earnings to Pakistan based business. (Of course I will be paying my income tax in Pakistan not in Portugal)
3- Do my PayPal earnings can trigger tax authorities in Portugal?
4- I don't need to charge Sales tax on US customers, right?
5- Does it really matter from where the website is run? The company is registered in Pakistan but the website is being run in Portugal.
6- Anything more if you guys can see or advice in this scenario?
I will be grateful for your help, thanks!