Hi,
I could do with some advice if anyone can help please.
I'm based in the UK and make courses which I sell online. Last year I was contacted by an EU company; they asked me to make a course for them which they planned to sell on their platform and we had a royalty share agreement. At first they were happy to deal with me and pay me as an individual. In May this year they told me that they couldn't pay me as an individual, claiming that doing so meant their tax authority would treat me as an employee and tax me (and them) on the income. They requested I create a company as a vehicle to receive the payments. I created the company about 6 weeks ago.
They are now saying that the company must be VAT registered in spite of its income being significantly below the UK threshold. They claim that they cannot pay me until I am registered and have a number and that previous invoices from my company to theirs are invalid and will need to be re-issued.
Is this correct? It doesn't seem right, given that the whole point of the EU is to reduce trade barriers, but I have no expertise on this matter.
Thanks in advance.
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