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Vat on invoice, yes or no?
Thread poster: xxxSn0w_Tig3r2
xxxSn0w_Tig3r2
Local time: 20:53
Dutch to English
+ ...
Apr 13, 2005

Hello all,

I've just started as a translator and I'm struggling to find the answer to this question.

Should I mention the Vat-number of companies on my invoice or no, and what is exacly the difference?
Lot of times companies don't mention their Vat-number so do I have to ask for this and put it or is that a sign that I don't have to put it.
I would especially like to know this for the countries UK and Austria (I am located in Holland)

Thanks for your attention and
friendly greetings,

Sandra Zijlstra


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Ralf Lemster  Identity Verified
Germany
Local time: 20:53
English to German
+ ...
Ask your tax advisor, or the tax authorities Apr 13, 2005

Dear Sandra,
Welcome to ProZ.com.

I'm sure you will get answers to your questions, however, I would strongly suggest to check these issues with your tax advisor, and/or your local tax authority. (The advantage of using the latter is that they don't charge for advice...)

Given the intricacies of tax laws, giving you a general guideline without knowing your particular details is going to be risky.

Best regards, Ralf


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In the UK Apr 13, 2005

Not sure if this will help, but in the UK, if you are registered for VAT (ie you add VAT to your invoices) your invoice would need to show your VAT number because your customer may be able to claim back the VAT part. Your customer's VAT number is not needed on your invoice.

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Dan Schioenning Larsen
Romania
Local time: 21:53
Member
English to Danish
ask your local authorities Apr 13, 2005

You should ask your local authorities or tax advisor as Ralf says.

You will eventually pay the VAT you collect to your own tax authority, and therefore it is their rules that determine how you should invoice other countries.

However, in the EU from 1 Jan 2004 legislation was made that makes the collection of VAT reversed in the translation industry. What that means is that you must state the customer's VAT number (and your own), plus write on the invoice, "VAT reverse charge". It is then the customer's duty to pay the VAT to their own authorities.

All of this only applies if you are in fact subject to VAT. If you are below your country's VAT minimum, then you should not state anything about VAT at all.


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Williamson  Identity Verified
United Kingdom
Local time: 19:53
Flemish to English
+ ...
Do they have a VAT-number ? Apr 13, 2005

Do they have a VAT-number? In the Uk, the VAT-treshold for on-line services is £70.000 or about €102,545 per annum, in Austria it is about €50,000.
If your customers don't have a VAT-number, you must add the percentage which is applicable in your country.
Given that these VAT-questions arise time and again would it not be wise to add "an howto" on VAT?
[...edited...]


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vixen  Identity Verified
Greece
Local time: 21:53
Member (2002)
English to Dutch
+ ...
Check the forums Apr 13, 2005

This subject has been discussed several times before. Search the forums and you'll find a lot of useful material.

See for example http://www.proz.com/post/148787


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Astrid Elke Witte  Identity Verified
Germany
Local time: 20:53
Member (2002)
German to English
+ ...
I recently encountered the same problem Apr 13, 2005

Hello Sandra,

I live in Germany and came up against the identical problem when starting in business this year. As far as I understand, you absolutely have to put the customer's VAT number if they are in a different EU country from you. The reason for that is that, if they are in a different EU country from you, you do not have to charge them VAT, provided that they own a VAT number. If they own a VAT number, they will expect you not to charge them VAT, and they should therefore provide you with the number, at least if you ask. You need to ask whether they have a VAT number or not.

You also have to write on the invoice, if they have a VAT number and you do not have to charge them VAT, that no VAT is included in the invoice. It is important to remember to write this.

If the customer is in a different EU country from you and does not own a VAT number, you will have to charge them VAT.

If the customer is in the same country as you, it does not matter whether you put their VAT number on the invoice or not, because you will have to charge them VAT anyway. However, you do have to always write your own VAT number on the invoice.

Best regards,

Astrid

[Edited at 2005-04-13 20:16]


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Christopher RH
Local time: 20:53
French to English
same here... Apr 15, 2005

What Astrid describes above applies in France too: you only need the customer's VAT number if you want them to pay VAT directly in their Member State. If you charge VAT on your invoice, then you don't need their VAT number at all. Just your own.

I doubt this requirement differs throughout the EU. After all, the point is to make sure that VAT is collected, not to verify from whom it was collected. The "from whom" aspect only matters when trying to avoid paying it (i.e. deductions and EU exemptions).

Of course this isn't gospel: you may be subject to specific rules governing certain forms of business. If it was compulsory in all cases, though, you'd never be able to sell translations to private individuals!


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xxxFullCircle
Netherlands
Local time: 20:53
English to Dutch
Make an appointment with the Startersdesk Apr 15, 2005

Hi Sandra,

My best advice is to make an appointment with the Startersdesk of the Belastingdienst. They can tell you all you need to know about up your business.

But I can tell you that:

- you don't need to charge VAT if the client is an EU citizen and has provided his VAT number

- you do have to charge VAT if the client does not have a VAT number in the EU

- outside the EU you don't have to charge VAT

Furthermore, if you have any questions, the belastingtelefoon can help you out as well. However, I do advise you to double check the information you're getting, because sometimes they tend to disagree with each other.

Good luck!

Marion


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xxxSn0w_Tig3r2
Local time: 20:53
Dutch to English
+ ...
TOPIC STARTER
Thx Apr 23, 2005

Thank you all for your wonderfull advise, I really appreciate it!

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lien
Netherlands
Local time: 20:53
English to French
+ ...
links Apr 27, 2005

http://www.beeldrijk.org/cat/Fiscaliteiten/Facturering%20en%20incasso/370

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