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Can I prove non-receipt payments as expenses?

Can I prove non-receipt payments as expenses?

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I want to establish a Limited Company in UK, but I have some questions. We are from Turkey. We sell virtual products, we work with a 20% profit margin. We sell in-game currency and products for online games. We supply these products from individual customers who want to sell on our website. For this reason, we cannot receive invoices from these users. We buy these products from our customers in Europe. Although 90% of our sales are in Europe, we sell to the whole world. Are money transfers that we send to individual users to purchase products counted as expenses while filing tax returns? What do we need to be able to prove it as an expense without a receipt? Thanks in advance.

 

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By David Ex
19th Oct 2021 23:24

riverplate wrote:

What do we need to be able to prove it as an expense without a receipt?

You need to engage an accountant - especially as you are undertaking cross border transactions.

EDIT:Are you even in the UK? If not, why a UK company?

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Replying to David Ex:
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By riverplate
19th Oct 2021 23:48

David Ex wrote:

riverplate wrote:

What do we need to be able to prove it as an expense without a receipt?

You need to engage an accountant - especially as you are undertaking cross border transactions.

EDIT:Are you even in the UK? If not, why a UK company?

We are in Turkey. It is more advantageous for us to establish a company in the UK. Will non-receipt payments be counted as an expense when working with an accountant? Can't we do this without working with the accountant?

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Replying to riverplate:
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By David Ex
20th Oct 2021 00:48

riverplate wrote:

Can't we do this without working with the accountant?

Well, you’re asking for accounting/tax advice so apparently not.

If you seriously think that your plans don’t need professional advice (tax and legal for two) then you’ll inevitably make a huge and expensive mistake.

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Replying to riverplate:
Stepurhan
By stepurhan
20th Oct 2021 09:09

riverplate wrote:
It is more advantageous for us to establish a company in the UK.
I would point out that, given the existence of this question, you have no idea whether this is true.
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By Paul Crowley
20th Oct 2021 01:00

Which country decides the tax rules for your Turkish owned and controlled UK company is the first issue to resolve.
I think I know but being an accountant in the UK, you may not necessarily want to hear what my opinion is.

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Replying to Paul Crowley:
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By riverplate
20th Oct 2021 01:21

Paul Crowley wrote:

Which country decides the tax rules for your Turkish owned and controlled UK company is the first issue to resolve.
I think I know but being an accountant in the UK, you may not necessarily want to hear what my opinion is.

Thank you for your answer. Currently, we do not have any company in Turkey. We will make all money transfers from a bank (Wise) in the UK. Will not the UK decide the tax rules for the company we will establish in the UK? There is also a double taxation agreement between Turkey and the United Kingdom. Of course I would like to know your opinion. Thanks!

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Replying to riverplate:
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By Leywood
20th Oct 2021 07:40

You said you wanted to do this without an Accountant.

Paul is an Accountant.

This is a forum for Accountants. Actually meant for Accountants to talk to other Accountants.

What I think you meant by what you said is that you really want to do this without paying for an Accountant.

You need to engage and pay for professional advice. In both jurisdictions.

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Jason Croke
By Jason Croke
20th Oct 2021 08:45

Selling in-game products to UK consumers would trigger a UK VAT registration.

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