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Charging VAT in Italy to a client in France
Thread poster: reblack
reblack
Italian to English
+ ...
Mar 16, 2005

Hello all,

I couldn't find an answer by searching the forums but I am sure this has come up. I work in Italy and I need to bill a client in France. How do I go about charging VAT. I have an Italian VAT number. I can imagine applying the 4% iva but what about the 20% RA? Does anyone have experience with this? I would appreciate any pointers.

Thanks in advance.

Rachel


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Kimmy
Local time: 03:52
Italian to English
+ ...
You don't add IVA Mar 16, 2005

There is a standard phrase to put on the end of the invoice that expempts IVA.....

"Services exempt from VAT in accordance with art. 5 DPR 26.10.1972 no.633 and modifications (Italy)."


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lcotta
Local time: 19:52
English to Italian
+ ...
If you invoice within EU, you MUST apply VAT... Mar 16, 2005

...unless you are VAT exempt (do a Google search on "norme sull'esenzione IVA per esportatori abituali"). VAT exemption is a hairy business, consult you tax accountant. And also consult him about the mandatory papers on INTRASTAT (personal experience, got charged 200€ for doing paperwork allowing me to deduct €50 of foreign VAT...)

As a rule, VAT is excised from the ORIGINATING country of the invoice.

HTH

L.


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Ralf Lemster  Identity Verified
Germany
Local time: 19:52
English to German
+ ...
Contact your tax advisor, or the tax authority Mar 16, 2005

I couldn't agree more:
VAT exemption is a hairy business, consult you tax accountant.

...preferably before doing cross-border business.
Alternatively, you can also ask your local tax office.

Best regards,
Ralf


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xxxtr.
Local time: 19:52
English to Italian
kimmy is right, you don't charge VAT Mar 16, 2005

As long as the client is a business with their own VAT number, not a private individual.

See from the AITI website:

http://www.aiti.org/infogiuridiche.html

IVA su estero
Pubblichiamo il testo della circolare n. 147/E del ministero delle Finanze datata 10 giugno 1998 avente per oggetto: "Iva. Rilevanza territoriale delle prestazioni degli interpreti e traduttori", come apparsa il 12.6.1998 su Il Sole 24 Ore.

(...) si chiarisce che le cennate prestazioni di interpreti e traduttori, in presenza di prestatore nazionale:

1. sono assoggettate a imposta, se rese a:
* soggetto nazionale che le utilizza in Italia o altro Stato membro (lettera d);
* privato consumatore residente in altro Stato comunitario (lettera e);
* soggetto extracomunitario che le utilizza in Italia (lettera f).
2. sono escluse dal campo applicativo del tributo, se rese a:
* soggetto nazionale che le utilizza in territorio extracomunitario (lettera d);
* soggetto identificato, ai fini Iva, in altro Stato comunitario (lettera e);
* soggetto extracomunitario che le utilizza in territorio estero, comunitario e non (lettera f).

È appena il caso di ricordare che le medesime prestazioni, qualora siano rese a favore di un operatore nazionale, sono assoggettabili all'iva sempreché utilizzate in Italia o altro Paese comunitario, a prescindere dal fatto che il prestatore sia soggetto comunitario o non comunitario."


There is a nice table for a quick summary here:

http://www.abconsul.it/modules.php?name=Sections&op=viewarticle&artid=105&page=2


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Mónica Machado
United Kingdom
Local time: 18:52
English to Portuguese
+ ...
State client VAT number on your invoice Mar 16, 2005

Hello,

I agree with Traweb. To work VAT free for clients abroad you have to be VAT registered on your own country and your client abroad has to be VAT registered in their own country.

The client VAT number has to be mentioned on your invoice.

I am sure an accountant will help you further.

Best regards,
Mónica Machado


Traweb wrote:

As long as the client is a business with their own VAT number, not a private individual.

See from the AITI website:

http://www.aiti.org/infogiuridiche.html

IVA su estero
Pubblichiamo il testo della circolare n. 147/E del ministero delle Finanze datata 10 giugno 1998 avente per oggetto: "Iva. Rilevanza territoriale delle prestazioni degli interpreti e traduttori", come apparsa il 12.6.1998 su Il Sole 24 Ore.

(...) si chiarisce che le cennate prestazioni di interpreti e traduttori, in presenza di prestatore nazionale:

1. sono assoggettate a imposta, se rese a:
* soggetto nazionale che le utilizza in Italia o altro Stato membro (lettera d);
* privato consumatore residente in altro Stato comunitario (lettera e);
* soggetto extracomunitario che le utilizza in Italia (lettera f).
2. sono escluse dal campo applicativo del tributo, se rese a:
* soggetto nazionale che le utilizza in territorio extracomunitario (lettera d);
* soggetto identificato, ai fini Iva, in altro Stato comunitario (lettera e);
* soggetto extracomunitario che le utilizza in territorio estero, comunitario e non (lettera f).

È appena il caso di ricordare che le medesime prestazioni, qualora siano rese a favore di un operatore nazionale, sono assoggettabili all'iva sempreché utilizzate in Italia o altro Paese comunitario, a prescindere dal fatto che il prestatore sia soggetto comunitario o non comunitario."


There is a nice table for a quick summary here:

http://www.abconsul.it/modules.php?name=Sections&op=viewarticle&artid=105&page=2[/quote]

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Elvira Schmid  Identity Verified
Italy
Local time: 19:52
English to German
+ ...
Difference between EU and not EU Mar 17, 2005

Hi Rachel,

if your client is a EU member, you have to state:

* Tax free according to D.P.R. 633/1972, Art. 7, 4 letter E.


if your client is not an EU membr, you have to state:

*Tax free: D.P.R. 633/1972: Art. 7, co., lett. f.


In both cases you do not apply VAT, but behind the amount, i.e.

400 €* put an asterisk and the applying aritcle (EU or not EU) at the bottom.

HTH
Elvira


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reblack
Italian to English
+ ...
TOPIC STARTER
what I found out from my accountant Mar 17, 2005

Yes, it is very confusing and I think this discussion proves that:) What my accountant told me was that, technically, the work needs to be carried out in the other EU country to be VAT exempt. He told me to cite Art.7/b DPR 26.10.1972 no. 633. I am going to look into the other articles that people cited. I guess the big fear is ending up footing the bill myself at the end.

I will let you know what happens. Thanks for everyone's help.

Rachel


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Ralf Lemster  Identity Verified
Germany
Local time: 19:52
English to German
+ ...
EU website Mar 17, 2005

Hi Rachel,
Could it be that your accountant referred to the principle that for certain services, the place of performance is deemed to be in the country of the recipient (regardless of where the service provider actually carried out the work)?

Anyway, you may want to check the VAT overview on the EU website.

Best regards,
Ralf


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