Advised on choosing efficient model for performing e-commerce business

Our tax law experts have consulted the client, operating a biggest chain of DIY stores in the Baltic countries. Our client has acquired e-platform, one of the leading online retail market players in the Baltic states.

We have advised on choosing a most efficient model for performing e-commerce business in Latvia and Estonia without establishing a separate entity in those countries. Our analysis was aimed to eliminate the requirement to register permanent establishments in those countries for corporate income tax purposes. Taking into consideration recent developments on e-commerce taxation provided by the OECD, our tax law experts have come up with a decision that acquisition of another e-platform in our client’s e-commerce processes should not increase the risk of permanent establishment creation in those countries.