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VAT Registration Number
Thread poster: Dmitry Golovin

Dmitry Golovin  Identity Verified
Local time: 22:14
English to Russian
+ ...
Apr 22, 2007

A UK-based company asked me for VAT Registration Number. I am based in Russia and know of no such thing, except for the INN (Tax identification number) which I do have. Should I indicate my INN or refer (as they requested) to the reasons for VAT exemption. But what would be the reason while I am not registered as a sole proprietor (individual entrepreneur)?

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RobinB  Identity Verified
Germany
Local time: 21:14
German to English
Irrelevant Apr 22, 2007

EU VAT ID numbers are entirely irrelevant for both suppliers and clients domiciled outside the EU: suppliers outside the EU do not charge VAT to customers in the EU (exceptions apply to e-commerce transactions with private individuals), and EU companies don't charge VAT to clients outside the EU.

I can only imagine that your UK-based company has simply forgotten this.

HTH,
Robin


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Rui de Carvalho  Identity Verified
Portugal
Local time: 20:14
English to Portuguese
+ ...
VAT Apr 22, 2007

The reason for VAT exemption is simply the fact you are taxed outside European Union. This problem normally arise from the fact that UK is more out than in UE, thus most people know nothing about UE rules, speccially tax rules. Just tell them VAT does not apply to you, something they should know.

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Dmitry Golovin  Identity Verified
Local time: 22:14
English to Russian
+ ...
TOPIC STARTER
Thanks a lot, Robin Apr 22, 2007

Thanks a lot, Robin and Rui de Carvalho

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RobinB  Identity Verified
Germany
Local time: 21:14
German to English
VAT ignorance Apr 22, 2007

Rui de Carvalho wrote: This problem normally arise from the fact that UK is more out than in UE, thus most people know nothing about UE rules, speccially tax rules.


Can I just point out, please, that ignorance of cross-border VAT rules is widespread throughout the EU, and has absolutely no link whatsoever to any particular EU member state.

If you check past threads about VAT here in ProZ, you'll find that the vast majority of ignorance-based problems have nothing at all to do with the UK. In fact, the volume of "missing trader" VAT fraud in the UK indicates that people in the UK are more aware than most of the potential loopholes in Community VAT law.

Robin


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NataliaElo  Identity Verified
Germany
Local time: 21:14
Member (2004)
English to Russian
+ ...
See Russian Forum Apr 22, 2007

Hi Dmitry,

The topic has been discussed there recently.

http://www.proz.com/topic/70806

Best regards
Natalia


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xxxLia Fail  Identity Verified
Spain
Local time: 21:14
Spanish to English
+ ...
agree Apr 22, 2007

RobinB wrote:

Rui de Carvalho wrote: This problem normally arise from the fact that UK is more out than in UE, thus most people know nothing about UE rules, speccially tax rules.


Can I just point out, please, that ignorance of cross-border VAT rules is widespread throughout the EU, and has absolutely no link whatsoever to any particular EU member state.

If you check past threads about VAT here in ProZ, you'll find that the vast majority of ignorance-based problems have nothing at all to do with the UK. In fact, the volume of "missing trader" VAT fraud in the UK indicates that people in the UK are more aware than most of the potential loopholes in Community VAT law.

Robin


The only way in which the UK is "out" is that it uses pounds rather than euros, but in every other respect it is a full member of teh EU and subject to all EU legislation, directives etc, in exactly the same way as all other EU countries.


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rkillings  Identity Verified
United States
Local time: 12:14
French to English
VAT on services from outside the EU Apr 22, 2007

Rui de Carvalho wrote:

st tell them VAT does not apply to you, something they should know. [/quote]

It applies to *them*, though: they will be required to impute VAT through the so-called reverse charge mechanism.

You won't ingratiate yourself by pointing this out, but it may help them understand that there is no loophole here. VAT is charged, and *they* pay it . . . levelling the playing field for translators inside the EU.


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megane_wang  Identity Verified
Spain
Local time: 21:14
English to Spanish
+ ...
VAT ID is used as a legal ID anyway Apr 23, 2007

Hello --

I don't know where it is mandatory and where not. But, in Spain, in order to be able to account for an invoice, it must be complete: this usually means that it must include {company name / person full name, tax address and VAT ID}, for BOTH parties (the provider and me).

It does not matter if you don't have to apply VAT. This ID is used by tax agencies as a unique identifier for a tax-paying entity (person or company). Note that VAT is not the only thing to be thought about: for a start, I cannot use incomplete invoices to justify any expenses in my business: this affects accounting, balance, accounted profits and some funny taxes applied to them... (ouch!)

This may be the reason to ask you for this VAT ID. In your case, I vould provide the INN, and that's all. This does not mean that they are going to charge/request any VAT

Ruth @ MW

[Edited at 2007-04-23 14:25]


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