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How to keep the cost of EURO payments within EU to a minimum (after July 1)
Thread poster: Mats Wiman

Mats Wiman  Identity Verified
Sweden
Local time: 14:50
Member (2000)
German to Swedish
+ ...
Jun 27, 2003

Useful information about payments in Euro:

From July 1, international Euro payments between countries in the EU
are to be charged the same rate as if they were domestic (EU regulation 2560/2001).

For the above to hold and to keep costs at a minimum there are 3 prerequisites:

1. The payer has to use the computer to execute payment.
2. The payer has to use the IBAN of the recipient.
3. The payer has to use the BIC of the bank of the recipient.

IBAN = International Bank Account Number (unique account identifier)
BIC = Bank Identifier Code (unique bank identifier, identical with today's SWIFT code)

You'll have to get the IBAN from your bank.

The IBAN and the BIC are certinly to be use for all payments from abroad into the EU.

Best regards

Mats J C Wiman
Übersetzer/Translator/Traducteur/Traductor > swe
http://www.MatsWiman.com
http://www.Deutsch-Schwedisch.com
http://www.proz.com/translator/1749
(ProZ.com deu>swe & forum moderator)
eMail : MatsWiman@tele2.se
Street: Träsk 201
Post : S-872 97 Skog
Tel : +46-612-54112
Fax : +46-612-54181
Mobile: +46-70-5769797


[Edited at 2003-06-29 11:05]


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Antonella Andreella  Identity Verified
Italy
Local time: 14:50
German to Italian
+ ...
Thanks Mats Jun 28, 2003

Here is a EU link, the document is available in various languages

http://europa.eu.int/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=en&numdoc=32001R2560&model=guichett

Regards
Antonella


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Patricia Posadas  Identity Verified
Spain
Local time: 13:50
Member (2002)
English to Spanish
+ ...
Great news! Jun 28, 2003

I knew it was to come but didn't know when!

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sylvie malich
Germany
Local time: 14:50
German to English
I have one small question... Jun 30, 2003

Does this rule effect invoices from July 1st or on invoices written earlier and paid after the 1st?
I have an Austrian client owing me a substantial sum that was due 2 weeks ago. She will unfortunately for me be paying after July the 1st. Theoretically should she be paying VAT? -- if so, how do I diplomatically charge her VAT after the fact? Or is the VAT to be added on new invoices submitted to the customer from the 1st?


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Ralf Lemster  Identity Verified
Germany
Local time: 14:50
English to German
+ ...
IBAN/BIC and VAT are two different issues Jun 30, 2003

Hi Sylvie,
I believe you're mixing two issues here - Mats' posting refers to the lower cost of EU cross-border payments - nothing to do with VAT.

Does this rule effect invoices from July 1st or on invoices written earlier and paid after the 1st?

AFAIK, the only change affecting VAT effective 01JUL2003 refers to vendors outside the EU.

I have an Austrian client owing me a substantial sum that was due 2 weeks ago. She will unfortunately for me be paying after July the 1st. Theoretically should she be paying VAT?

(Rod, are you reading this? Correct me if I'm wrong...)

You should generally discuss these issues with your tax advisor - any information I provide here does not represent tax advice.

VAT is due at the rate prevailing when the invoice is issued. I assume that you are resident in Germany for tax purposes, and include VAT on invoices issued to German customers. To invoice a translation to an Austrian customer free of VAT, you need that customer's EU VAT ID. If you issue cross-border VAT-exempt invoices to EU customers without that ID, there's a risk that you will be liable for VAT - based on the gross amount you have invoiced.

Hope that clarifies a few things, Ralf


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sylvie malich
Germany
Local time: 14:50
German to English
"mixing two issues here" Jun 30, 2003

Ralf Lemster wrote:

Hi Sylvie,
I believe you're mixing two issues here - Mats' posting refers to the lower cost of EU cross-border payments - nothing to do with VAT.


It's Monday morning... Sorry for my confusion, I don't know where that came from (C:


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