I always wondered how countries within EU (and Schengen zone) can prove to whom are you required to pay income taxes.
All the countries I will mention are part of the EU-Schengen zone.
Let's say I work fully remotely and I have residency in Country A. I travel a lot within the Schengen zone and have my business registered in Country B. I don't pay taxes to country where I officially reside, but I pay it to Country B.
To be more clear, I don't spend more than 180 days in Country A. Even if I did, how could it possibly be proven? I'm free to travel within the Schengen zone.
As far as I'm aware of INCOME earned in one country MUST be taxed in that country. So taking a look from the legal perspective each country I visit, I would have to pay taxes to it (As I work remotely when I travel). There is no way I'd be doing that for number of reasons.
Will I be good paying taxes only to Country B while residing in Country A and travelling / working in other countries within Schengen area? What could go wrong there?