Invoice preparation: please help
Thread poster: Sergio Viñals
Sergio Viñals
Local time: 12:46
Spanish to English
+ ...
Feb 12, 2006

Hi,

A month ago I finished my first translation job with a UK-based company. They have asked me to send them an invoice, but I only have the company's name and address!

As this is the first time I have to prepare an invoice for a foreign company (I am from Spain), I'd appreciate it very much if you could provide me with some information regarding this issue.

In Spain, I usually add an extra 16% out of the total for VAT purposes, and subtract another -7% for IRPF purpuses. The gross amount of the translation is 4,200€.

Also, could you please tell me what the usual payment method is? I normally get paid via bank transfers, within Spanish banks.

Thanks a lot for your help


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Ralf Lemster  Identity Verified
Germany
Local time: 12:46
English to German
+ ...
What was agreed at the outset? Feb 12, 2006

Hi Sergio,
A month ago I finished my first translation job with a UK-based company. They have asked me to send them an invoice, but I only have the company's name and address!

Which is essentially all you need to issue an invoice (although I would never work for an outsourcer without checking phone and fax numbers...). What you should obtain is their EU VAT ID.


Also, could you please tell me what the usual payment method is? I normally get paid via bank transfers, within Spanish banks.

This is typically agreed upon in advance - what does the PO say?

Bank transfer is possible between the UK and Spain (to avoid excessive charges, you should quote your IBAN and your bank's BIC), but it's worthwhile agreeing upon who pays fees (if any).

Best regards,
Ralf


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Pilar T. Bayle  Identity Verified
Local time: 12:46
English to Spanish
+ ...
Invoicing from Spain Feb 12, 2006


I only have the company's name and address


Ralf said it: you need their VAT No. Ask them for their VAT No. (similar to their CIF)


In Spain, I usually add an extra 16% out of the total for VAT purposes, and subtract another -7% for IRPF purpuses. The gross amount of the translation is 4,200€.


Sure, that works for Spain ONLY. When invoicing abroad, you invoice just for the amount regarding the translation ("base imponible"). You do not charge VAT (because you are not going to liquidate VAT with the English Tax Service), you do not deduct your taxes (because they are not going to liquidate your taxes with the Spanish Hacienda). So your total amount for that invoice would be EUR 4,200.

[May I say that it seems too large an amount for being the first time you work for that agency??? Before you establish a rapport with an agency (good jobs, decent rates, good payment practices), you should limit the amount you work for. That is, I'd limit myself to the largest amount I'd be ready to loose. In my case, that's about 200 euros. What happens now if your client defaults????? You'd be out of a lot of money...]

Your client will have to declare VAT to its own tax authorities, and you'll liquidate your IRPF at the end of the term (I don't know how it works exactly, I have an accountant who does it for me).


Also, could you please tell me what the usual payment method is? I normally get paid via bank transfers, within Spanish banks.


From England that would be a bank transfer, although as Ralf said, that should have been agreed beforehand. In any case, write your BIC and your IBAN (ask your bank) in the invoice.

Kind regards,

P.
www.pbayle.com/blogs


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Sergio Viñals
Local time: 12:46
Spanish to English
+ ...
TOPIC STARTER
Re: Invoice preparation: please help Feb 12, 2006

Pilar T. Bayle wrote:
Sure, that works for Spain ONLY. When invoicing abroad, you invoice just for the amount regarding the translation ("base imponible"). You do not charge VAT (because you are not going to liquidate VAT with the English Tax Service), you do not deduct your taxes (because they are not going to liquidate your taxes with the Spanish Hacienda). So your total amount for that invoice would be EUR 4,200.


So, basically, I'll have to prepare an invoice that includes the following:

1) My own details (Name, address, NIF)
2) My customer's details (name, address and VAT No)
3) Nature and description of service, Units of service, Rate of service, and Total amount.

Could you please confirm this? Thanks a lot for your help.

Pilar T. Bayle wrote:
[May I say that it seems too large an amount for being the first time you work for that agency??? Before you establish a rapport with an agency (good jobs, decent rates, good payment practices), you should limit the amount you work for. That is, I'd limit myself to the largest amount I'd be ready to loose. In my case, that's about 200 euros. What happens now if your client defaults????? You'd be out of a lot of money...]


The job was not through an agency this time. My client found my profile at Proz.com and contacted me. In fact, I usually work on my own as a freelance translator, searching for customers and contacting them by myself, which may sometimes be a bit risky. Fortunately, I've never had any problems so far.

Pilar T. Bayle wrote:
Your client will have to declare VAT to its own tax authorities, and you'll liquidate your IRPF at the end of the term (I don't know how it works exactly, I have an accountant who does it for me).


That also confuses me a bit. I usually include an IRPF percentage on each invoice. At the end of the fiscal year, all the percentages are added up and forwarded along with the 'Declaración de la Renta'...
In this case, that percentage does not appear on the invoice... so I wonder what would happen when I forward the Income Declaration...

Thanks a lot Ralf and Pilar for the information, it has been really useful.


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Ivona Tillett
United Kingdom
Local time: 11:46
English to Romanian
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PayPal is the best method Feb 12, 2006

PayPal is the best method to be paid. (It costs, of course, but it's instant).

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Pilar T. Bayle  Identity Verified
Local time: 12:46
English to Spanish
+ ...
Take Two... Feb 12, 2006


So, basically, I'll have to prepare an invoice that includes the following:

1) My own details (Name, address, NIF)
2) My customer's details (name, address and VAT No)
3) Nature and description of service, Units of service, Rate of service, and Total amount.


It's NOT your NIF, it's your international NIF. It should start with ES- followed by your NIF (it has to be registered at Hacienda, though, you just can't go ahead and use it; they call it "número de operador intracomunitario").


The job was not through an agency this time. My client found my profile at Proz.com and contacted me. In fact, I usually work on my own as a freelance translator, searching for customers and contacting them by myself, which may sometimes be a bit risky. Fortunately, I've never had any problems so far.


It doesn't matter. Do you think that the only ones that default are agencies??? Direct clients do default too. I love you calling EUR 4,200 a little risk. According to your own rates advertised on you profile, those EUR 4,200 are 70,000 words. At a standard rate of 3,000 daily, that's 23 working days.

By the way, may I say that your rate for direct clients abroad is not just low, but extremely low???


In this case, that percentage does not appear on the invoice... so I wonder what would happen when I forward the Income Declaration...


I told you, you have to declare it when you liquidate your income, either by the end of the term or by the end of the year. But I've always considered that money paid to accountants is very well paid: they provide me with what I need and I do not waste my time trying to understand laws that not even lawyers understand.

P.
www.pbayle.com/blogs

[Edited at 2006-02-12 14:04]


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xxxMarc P  Identity Verified
Local time: 12:46
German to English
+ ...
Invoice preparation: please help Feb 12, 2006

Ralf Lemster wrote:

What you should obtain is their EU VAT ID.


... assuming they have one. In the UK, the threshold for compulsory VAT registration is quite high, and many companies are not VAT-registered.

Marc


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Annette van der Lei
Spain
Local time: 12:46
French to Dutch
+ ...
previous post about IRPF, VAT, income declaration etc. Feb 13, 2006

http://www.proz.com/post/302431#302431

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