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Company in Spain asking a fiscal residence certificate from Ltd. Company
Thread poster: Uldis Liepkalns

Uldis Liepkalns  Identity Verified
Latvia
Local time: 00:26
Member (2003)
English to Latvian
+ ...
Feb 3, 2009

We encountered a strange situation- maybe somebody can advise me.

We are Latvian based Ltd. Company, our data and VAT Number can be verified online at :
http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN

A Company in Spain just demanded from us hard copy fiscal residence certificate. We cannot produce such- our Tax Authorities does not issue such to Companies, not to mention that it is impossible to transfer Latvian registered company to another country even if we wanted to (yes, we can establish new one abroad, but not move the existing one).

Can you please advise me if it is normal in Spain asking foreign based Companies to provide such proofs?


This is not related to VAT but to withholding taxes. In Spain, withholding taxes are deducted at source. In order to avoid deducting those taxes on your invoices, we need to demonstrate Spanish Authorities every year that you are based in Latvia. Latvia and Spain signed an Agreement in order to avoid double taxation and therefore both accepted to issue the documentation requested. The document you sent should include your address and be dated 2009.


I gave them links to EU online VAT number verification as well as Latvian Company Register where our data can be verified- to no avail. They replied:


Could you please let me know if you will send us a certificate for 2009? We will not be able to work with your company if we do not receive such a document.


Uldis


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Lori Cirefice  Identity Verified
France
Local time: 23:26
French to English
confusing company with individual? Feb 3, 2009

I think your client may be a little confused...

Why don't you offer to send them an official copy of your company registration certificate, with a stamp from the appropriate authority in your country?


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Uldis Liepkalns  Identity Verified
Latvia
Local time: 00:26
Member (2003)
English to Latvian
+ ...
TOPIC STARTER
I explained it to them in detail Feb 3, 2009

However, their last answer was as you see above "give it to us or...".

So I'm not sure what to do- to tell them they are idiots obviously wouldn't do, but I also cannot produce any Company Fiscal Residence Certificate (without resorting to Photoshop, that is...).

And yes, I sent them Scanned Company Registration and VAT Registration certificates. They didn't impress them...

Can please anybody give me some relevant Spanish Tax Office links I could feed to them, please?
In Google searching for "Spanish Tax Office" returns only Tax Lawyers sites...

Uldis

Lori Cirefice wrote:

I think your client may be a little confused...

Why don't you offer to send them an official copy of your company registration certificate, with a stamp from the appropriate authority in your country?



[Rediģēts plkst. 2009-02-03 21:02 GMT]


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Lori Cirefice  Identity Verified
France
Local time: 23:26
French to English
a starting point Feb 3, 2009

http://www.aeat.es/wps/portal/Listado?channel=ef5abd4dfdc0b110VgnVCM1000004ef01e0a____&ver=L&site=56d8237c0bc1ff00VgnVCM100000d7005a80____&idioma=en_GB&menu=0&img=0


Also check the pdf leaflet called "manrentanoreside" (you will find it in English with google, I can't get the link to work), on page 6, it looks like "entities" also need to provide this fiscal residency certificate. Maybe it's worth checking with your local authorities again to see if they can provide a certificate.

I sometimes need to present certificates in order to get VAT refunds, certain countries want the certificates to be in a certain format, so I just type it up and format it the way it is required, and bring it down to my local French tax authority and they usually don't mind signing/stamping my homemade certificate. Something like this might work for you. Still, I think your customer is confused, your company registration certificate should be enough.

Also FYI in case this helps:

Convention between the Republic of Latvia and the Kingdom of Spain for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital

1. Branch: Taxes
2. Date of conclusion: 04 Sep 2003
3. Adopted by: Saeima (Parliament) 29 Jan 2004
4. Status: in force 14 Dec 2004
5. Duration: indefinite
6. Publication: Latvijas Vēstnesis Nr.26 18 Feb 2004
7. Signatories:
* Latvian side: Maris Riekstins - State Secretary of Ministry of Foreign Affairs
* other side: Ramon de Miguel y Egea �� State Secretary of Foreign and European Affairs of Ministry of Foreign Affairs of Spain


[Edited at 2009-02-03 21:23 GMT]


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Jurate Janaviciute  Identity Verified
Luxembourg
English to Lithuanian
local tax office Feb 3, 2009

Since tax offices register companies based on their fiscal residence, your local tax office should be the place to go. After all, every time filling tax returns you also indicate fiscal residence of your company (most probably you have a choice between the two: Latvian or foreign). I do not see why it should be a problem for them to issue a certificate stating that fiscal residence of your company is in Latvia.

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Uldis Liepkalns  Identity Verified
Latvia
Local time: 00:26
Member (2003)
English to Latvian
+ ...
TOPIC STARTER
Thank you Jurate Feb 3, 2009

The problem is that VAT registered companies validation in EU is done online (besides I already sent them our scanned Registration Certificates), with the same results I could go to our Tax Office and demand a Certificate confirming that I Am a Male...

And no, as our Company is registered in Latvia, we have no option to declare it as "foreign based". The more so- if it is registered in Latvia, I cannot pocket it and take it abroad even if I wanted to. No such option exists.

Uldis

Jurate Janaviciute wrote:
I do not see why it should be a problem for them to issue a certificate stating that fiscal residence of your company is in Latvia.



[Rediģēts plkst. 2009-02-03 22:12 GMT]


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Rebecca Lowery  Identity Verified
United Kingdom
Local time: 22:26
French to English
I had the same problem with an agency in Spain Feb 3, 2009

I'm VAT registered in the UK so it's pretty obvious in my opinion that I pay tax in the UK yet I still had to produce a fiscal residence certificate for a translation agency in Spain. In my case I'd actually done the work but they were refusing to pay me unless I produced the certificate.

Call your local tax office just to get the name of the person/department who would issue such a certificate. My tax office were quite understanding even though they didn't see the point of it either and they actually allowed me to apply for the certificate by faxing them a letter stating my request. Admittedly I had to chase them as they managed to lose my fax the first time but I'd say your local tax office is the place to start.

Good luck!


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Jurate Janaviciute  Identity Verified
Luxembourg
English to Lithuanian
I also find it absurd Feb 4, 2009

Uldis Liepkalns wrote:

And no, as our Company is registered in Latvia, we have no option to declare it as "foreign based". The more so- if it is registered in Latvia, I cannot pocket it and take it abroad even if I wanted to. No such option exists.

Uldis


Of course it is not possible to suddenly declare that you are "foreign based". Maybe in Latvia it is somewhat different, but at least a Lithuanian branch of a foreign based company would have to fill in other sheets of some tax returns than a Lithuanian based company. By doing so a company indicates whether or not its main residence is in Lithuania.

I agree with you that it is self evident. Even if bureaucracy is designed for our convenience, in practice its manifestations are often absurd...

Once I was asked to provide a proof of my actual place of living. A suitable proof was considered a printout of my bank account data. However, the bank has never asked me to prove that I actually live at this place...

[Edited at 2009-02-04 18:12 GMT]


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Uldis Liepkalns  Identity Verified
Latvia
Local time: 00:26
Member (2003)
English to Latvian
+ ...
TOPIC STARTER
Update Feb 7, 2009

Though our Tax Office was dumbfounded by my request, but they vere very undertsanding, on hearing that my export capability depends on it, they gave me this paper and did it really fast - the very next day- instead of in 2 weeks as Regulations oblige them in such cases.

But they didn't fail to mention that this is only second or third such request in all their history.

Uldis


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Ana Naglić  Identity Verified
Croatia
Local time: 23:26
Member (2005)
English to Croatian
+ ...
I see your point Jun 2, 2014

Today, I'm wasting my time explaining to one customer that they do not need it as I'm registered as a sole trade.
I have had several customers from that specific country this year and no one asked for a copy of fiscal residence. This one does. And izt must be sent by post.
I'd have to take the whole morning off my work, pay the administrative fee and send them a document which no other company asked for (I could send them my company certificate in no time).


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