Website translation in Spain - do I have to include IVA on my bill?
Thread poster: reliablewriters
reliablewriters  Identity Verified
Spain
Local time: 19:00
Spanish to English
+ ...
May 23, 2007

I've translated a small website for a Spanish company, no agency involved, translation was Spanish to English. I live in Spain, have residency and autónomo status (but haven't done long - that's why I don't know the financial ropes here!). I didn't mention IVA when establishing the translation cost at the start. Now the work is done I need to collect payment - should IVA be added to my invoice? (Should I ask the client first if they need me to do this, or is it an obligation to add it on?)
Hope more experienced colleagues can advise me ....many thanks....


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Andy Watkinson
Spain
Local time: 19:00
Member
Catalan to English
+ ...
IVA is applicable in Spain May 23, 2007

Hi,

Any invoice you make out for your services in Spain is subject to IVA/VAT at the current rate of 16%.

There is no "m¡nimum" as there is in the UK, where you only become liable for VAT when total income is approx. 60 thousand pounds per annum, so even a translation costing 25 euros in Spain is subject to VAT.

This 16% is the percentage to be calculated based on the final cost of the translation and then minus 15% IRPF (income tax).

e.g.

Invoice amount = 100 euros
- 15% IRPF = 15 euros
+16% IVA = 16 euros
--------------------------------------
Total payable = 101 euros
----------------------------------------

Andy.



[Edited at 2007-05-23 21:31]


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John Cutler  Identity Verified
Spain
Local time: 19:00
Spanish to English
+ ...
I would May 23, 2007

If you want to do everything 100% legally, you need to add IVA. If the job was small and the company you worked for doesn't mind, you could just get paid "in black" (you know what I mean).

I wouldn't ask the client if you can or should leave the IVA off unless you know them personally.

I would, however, advise you to get a "gestor" and do everything as legally as possible. It will save you problems in the long run. If you're paying "autónomos" every month, you'll need to declare the IVA you charge and pay it every 3 months. Leaving IVA off bills will only create problems.

PS: You didn't metion the IRPF. I assume you pay that as well?


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Parrot  Identity Verified
Spain
Local time: 19:00
Member (2002)
Spanish to English
+ ...
All persons with legal personality pay IVA May 23, 2007

So you should reflect this for a company.

Theoretically, private persons (físicas) not owning a business also require an invoice with VAT, but if, say, the person is your neighbour and just asked you for a favor for private use, you just might end up losing a friend...

What would bug a private person - even granted he was willing to pay VAT - would be the 15% or 7% IRPF. Don't bother putting it on the invoice and charge it to the rest of your income withheld when taxes come around!


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reliablewriters  Identity Verified
Spain
Local time: 19:00
Spanish to English
+ ...
TOPIC STARTER
Thank you May 24, 2007

Andy, John and Parrot,

Thank you so much for your perfectly simple explanations. You have all been a great help. Yes, I will of course take off the 15% tax too. A gestor is probably a good idea - do they charge much? Incidentally, why does someone not have to include IVA if the bill is for teaching English as opposed to translating it?


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