My state registered company serves as a subsidiary for a webdesign company in Hungary. The contracted relation

Question

ship requires that I open up a business and merchant account domestically , and they will set up and manage website while selling their products under my business name. My only responsibilty would be to keep 10% of revenue and transfer the rest to their company. My question is, does my tax liablity lie only for the 10% I keep? Or will I be liable for the total revenue?

Answer 1

This sound very scam-like, I hope you do more than just cash 10% (like marketing, ...).

The 90% will be a tax deductible expense, so you are only taxed on 10%. However you will be totally liable for everything that goes wrong with the sales (like import duties, VAT, sales tax, guarantees, ...)