Some of the questions a cross border business should be asking itself are:

Is it possible for an entity buying in Italy, selling outside of Italy and outside the UK to establish a structure to generate all business profits free of tax?

Do we have a permanent establishment in Italy and if so does this mean we have a tax liability in Italy? Or does our business conduct itself in such a way as to negate this problem?

If we are selling from Italy to another EU country should we be registered for IVA or is there a way we can avoid this? 

Do we need to form an Italian company and if so how do we do this? Or is there a tax effective and cost effective way around this? 

If we generate profits through a company, are the shareholders resident in Italy or the UK and does this impact on the overall tax effectiveness? 

If it’s a company, what is the dividend policy, where are the shareholders and how can this impact on tax effectiveness? 

Can we operate as an offshore company?

The management of cross border taxation for companies and other corporate entities is a complex area. However the best advice will, where other conditions are correct, result in tax efficient company and group structures which eliminate burdensome bureaucracy.