Dear Ilona,

Ireland is physically separated from the rest of the EU, and besides which, it has several VAT rates. However, it uses Postponed VAT Accounting (PVA), which simplifies import VAT arrangements.  For physical imports, it may not be the most ideal place to set up a company for the purposes of dealing with the rest of the EU.

I would also be inclined to look at Belgium or France because they have more beneficial VAT rates and they also use Postponed VAT Accounting (PVA) for their imports. The VAT Rate for France is 20%, while Belgium and the Netherlands have a main VAT Rate of 21%. The added advantage with Belgium is that it has a very efficient port system as well as efficient import controls. Furthermore, given that the Netherlands has a very efficient port and import system through the port of Rotterdam, this can be used very easily for imports into the EU, especially using the Article 42 facility to facilitate zero-rated Import VAT on consignments heading into the rest of the EU.

The Dutch Revenue website at http://www.belastingdienst.nl is easy to use, and this will help any trader wishing to establish a company in the Netherlands. Like Tony, I would be willing to assist in such matters, and in any case I speak fluent Portuguese, as my wife is Brazilian, and I know Brazil very well.

I hope this helps.

Mark