US Entrepreneur opening data storage business in Netherlands while being US Citizen

[VJB INC]

I am attempting to open a data storage business that will be housed in an already existing data storage center in the Netherlands. I plan on renting a space in the data center to set up my servers and plan to operate my business from the U.S. My question is because this business will be housed in the Netherlands but will be operated from the U.S. and I'm a U.S. Citizen where do I have to register the business and pay taxes to the U.S. or the Netherlands?

[Jeroen Kisters RPLU ARe]

Dear VJB INC,

 

I suggest you give the Dutch IRS a call (+31 555 385 385) and before you do so read the info on the website of the Dutch Chambre of Commerce.

[StevenK]

38 minuten geleden, Jeroen Kisters RPLU ARe zei:

Dear VJB INC,

 

I suggest you give the Dutch IRS a call (+31 555 385 385) and before you do so read the info on the website of the Dutch Chambre of Commerce.

Giving the Dutch IRS a call is the best way to scare off anyone...

 

I'd suggesting talking to the Data Center people. They probably already have customers in a similar situation with whom you could talk about how they've organized their business. 

 

The question whether you're required to register your business in The Netherlands will probably depend on the question whether you're focussing on Dutch customers.

[VJB INC]

StevenK

Thank you for the reply. and I agree ill reach out to them and start there for guidance on the start up and any other information they can provide me.

 

As far as the customer base goes, access to my data storage would be subscription-based and marketed from the U.S. on several different I.T. Forums and other websites like Reddit. So the customer base wouldn't be focused on one area or country but rather on whoever saw the ads and needed the storage. 

[Maxn]

1 uur geleden, VJB INC zei:

As far as the customer base goes, access to my data storage would be subscription-based and marketed from the U.S. on several different I.T. Forums and other websites like Reddit. So the customer base wouldn't be focused on one area or country but rather on whoever saw the ads and needed the storage. 

 

What is the reason you intend to host the servers in the Netherlands?!

Lag affects transfer speed as well.
So if you are also targetting customers that are located on say the west coast of the USA, you generally also want some gear a little bit closer to them...

 

As far as taxation goes.
Regardless of where the company is incorporated, and where you have to pay corporation tax (often where the management of the company is located, in your case USA), be aware that you have to pay VAT if you sell electronic services to EU consumers.
Those are taxed in country of customer, not country of supplier.