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VAT for a company that is registered in multiple countries
Thread poster: Nizamettin Yigit

Nizamettin Yigit  Identity Verified
Netherlands
Local time: 19:13
Dutch to Turkish
+ ...
Oct 9, 2007

Dear all,

I would like to ask how do you apply wat.

Company A is registered in multiple countries with the same name or as branch. If the contact person is not in your country, but they have an operation in your city (country), do you charge VAT?

Regards

Nizam


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Margreet Logmans  Identity Verified
Netherlands
Local time: 19:13
English to Dutch
+ ...
No, if... Oct 10, 2007

...the order/project originates from abroad.
You are delivering to someone outside your own country, aren't you?

Best,
Margreet


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Binnur Tuncel van Pomeren  Identity Verified
Germany
Local time: 19:13
Member (2007)
English to Turkish
+ ...
Sure you do as long as you are liable to VAT. Oct 10, 2007

Small note from my german tax consultant:

"As long as our company is liable to VAT, we have to request VAT from our clients (unless we pay it from our pocket)". Sofar, she has not differentiated between the clients abroad and within Germany. I would wonder if the Netherlands would much differ from Germany in this respect.

Warmest regards,
Binnur

[Edited at 2007-10-10 07:47]


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Nizamettin Yigit  Identity Verified
Netherlands
Local time: 19:13
Dutch to Turkish
+ ...
TOPIC STARTER
Confusing Oct 10, 2007

Dear Margret and Binnur,

Thanks for your time and answers.
Client has offices and, so, registered in multiple EU countries.
Ordering person is in UK, but invoice address is New York US.

They are registered in the Netherlands as well.

I know one case, Proz.com

Proz is registered in Germany. And if you are a consumer, not a registered company, charges VAT whether in germany or outside in the EU.

I have not asked to the Dutch Revenue Services but I dont see any reason not to charge VAT.

Am I wrong?

Regards,

Nizam


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Binnur Tuncel van Pomeren  Identity Verified
Germany
Local time: 19:13
Member (2007)
English to Turkish
+ ...
I have also started to agree with Margareet Oct 10, 2007

Now that you put more question for us to solve, I could just not help looking with more detail what other ressources were saying.

Here is an information that came to my attention in http://www.inzakengaan.nl/fiscus/btw.html under the subtitle " BTW tarieven en vrijstellingen". According to this article, I can infer that VAT can be exempted while working with foreign institutions.

In your case, you are mentioning about a big international company, that also has an affiliate in the Netherlands.

The article below seems to be a good fit to this situation:


Een buitenlandse BTW-plichtige die in Nederland een filiaal heeft, wordt voor alle activiteiten van dit filiaal gezien als een Nederlandse BTW-plichtige.
Search under: Fiscaal Rendement
Result is: "Fiscaal Rendement - Zoeken op datum: augustus/september 2002"

Yet, there is no information about how the affiliate abroad would be treated.

All in all, Margareet seems more correct to me. Do you have a solid proof Margareet?

Warmest regards to both of you,
Binnur

[Edited at 2007-10-10 08:36]


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Margreet Logmans  Identity Verified
Netherlands
Local time: 19:13
English to Dutch
+ ...
Two more comments Oct 10, 2007

The key in Binnur's comment seems to be: 'activiteiten van dit filiaal' - so if the order does not come from the Dutch office, I don't think this is 'activiteiten van dit filiaal'.

The point is, under Dutch law, one can charge VAT for Dutch customers, but not for companies abroad. I don't charge VAT for German and English customers, for example.

In this case, both the ordering person and the invoice adress are not in the Netherlands, so I would not charge VAT. I'd be surprised if they agreed to pay VAT, too. Dutch companies can deduct VAT for their taxes, companies abroad can't. They don't pay taxes in NL, do they?

But if you are in doubt, call the Belastingtelefoon.

P.S. Perhaps you can repost in the Dutch forum? This is pretty specific for the Dutch situation, I think.

P.P.S. Binnur, I don't have 'solid proof' to show you right now, but this is what my administrator (who also issues my invoices and happens to be my husband) tells me, and he is quite well informed.

[Edited at 2007-10-10 08:46]

[Edited at 2007-10-10 08:47]


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Sabine Trautewein  Identity Verified
Local time: 19:13
Member (2003)
English to German
The same in Germany Oct 10, 2007

It's really the same in Germany, I charge VAT in the case of clients in Germany, but not for clients in other countries as long as these clients are companies and not private individuals. In the case of private individuals I have to charge VAT no matter where they live (at least that's what my tax consultant instructed me to do...).

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Binnur Tuncel van Pomeren  Identity Verified
Germany
Local time: 19:13
Member (2007)
English to Turkish
+ ...
It is OK...:-) Oct 10, 2007

P.P.S. Binnur, I don't have 'solid proof' to show you right now, but this is what my administrator (who also issues my invoices and happens to be my husband) tells me, and he is quite well informed.

[Edited at 2007-10-10 08:46]

[Edited at 2007-10-10 08:47] [/quote]

Thank you Margareet. You have already provided with solid proofs:

Concerning your clients abroad (German and English customers) and if I may say so your administrator

I leave you both then in a forum among the Dutch residents.

Till another interesting topic.

Binnur


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nordiste  Identity Verified
France
Local time: 19:13
Member (2005)
English to French
+ ...
VAT in EU, on VAT outside EU Oct 10, 2007

If you are VAT-registered in EU,

if you invoice to a company outside EU (USA, AUstralia, INdia ...) : you don't charge VAT.

The key point is the address of the company written on your invoice, the one which will pay you.

You don't care if they have an internal system to re-invoice themself, or a European corespondant or whatever.

If you deliver and invoice to a VAT-registered European company then you don't charge VAT but you must write the VAT numlber of your client on the invoice and keep it for your VAT records.

If you invoice a small business in Europe (not VAT registered) or a private customer than you must charge VAT.


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Mikael Adolfsson  Identity Verified
Sweden
Local time: 19:13
English to Swedish
+ ...
Consult a reliable accountant Oct 10, 2007

Hi.

I really think you need to consult a reliable accountant since the VAT-rules seems to differ a lot from country to country. Here in Sweden I charge VAT for Swedish companies, not for any other country in the EU (my accountant double-checked this with the authorities). This is because of the § 7-exception of VAT for intellectual services (of which translating is one) in the EU.

So, make sure you don´t make a mistake that may be very expensive in the end ...


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Nizamettin Yigit  Identity Verified
Netherlands
Local time: 19:13
Dutch to Turkish
+ ...
TOPIC STARTER
News Oct 10, 2007

First I want to thank you all for your time and the information you have provided.

I called Dutch revenue Services (Belastingdienst).

They forwarded me to another operator who deals with VAT issues.

She could not answer and advised me to ask regional office in written, so the inspecter can evaluate the situation and give a written answer.

From the content of the discussion with her, I have a feeling that depending on the product this answer may be different.

It may also be different if the provided service is text translation or interpretation.

So, I will write a letter and wait for the answer.

As soon as I get answer, I will inform you as well.

Regards,

Nizam Yigit


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Margreet Logmans  Identity Verified
Netherlands
Local time: 19:13
English to Dutch
+ ...
Yes, please keep us posted Oct 10, 2007

I'm really interested.

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