What to charge with VAT Thread poster: fionainrome
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I live in Italy and here we have to register for VAT if we earn over 5.000 euros per year (not hard, eh?). There is a new law now, but I still haven't looked into it properly.
I am now beginning to contact agencies abroad and I was wondering what to charge per minute of subtitling considering this would have to include about 30% taxes + 20% VAT.
I was thinking of charging around 3.50 euros per minute of translation for subtitling + VAT
and 5 per minute of t... See more I live in Italy and here we have to register for VAT if we earn over 5.000 euros per year (not hard, eh?). There is a new law now, but I still haven't looked into it properly.
I am now beginning to contact agencies abroad and I was wondering what to charge per minute of subtitling considering this would have to include about 30% taxes + 20% VAT.
I was thinking of charging around 3.50 euros per minute of translation for subtitling + VAT
and 5 per minute of transcription + translation (NO TIME CODING) + VAT
The thing is, I know you don 't have to get registered for VAT in some countries and I've heard that some people have had trouble getting their client to accept to pay that 20% extra for VAT, bue we still have to pay it!
What do you think, am I charging too much/not enpough/avarage?
Thanks ▲ Collapse
| | | | Ralf Lemster 
Germany
Local time: 05:18
English to German
+ ...
| Reverse charge | Jan 10, 2008 |
Hi Fiona,
Before discussing Italian VAT with your foreign customers (most of which will probably be businesses), I suggest to familiarise yourself with the reverse charge mechanism and/or to discuss this with your tax advisor.
The thing is, I know you don 't have to get registered for VAT in some countries and I've heard that some people have had trouble getting their client to accept to pay that 20% extra for VAT, bue we still have to pay it!
For starters, take a look at EU Directive 77/388/EEC (I have marked the relevant parts in bold):
Article 9
Supply of services
1. The place where a service is supplied shall be deemed to be the place where the supplier has established his business or has a fixed establishment from which the service is supplied or, in the absence of such a place of business or fixed establishment, the place where he has his permanent address or usually resides.
2. However: (a) the place of the supply of services connected with immovable property, including the services of estate agents and experts, and of services for preparing and coordinating construction works, such as the services of architects and of firms providing on-site supervision, shall be the place where the property is situated;
(b) the place where transport services are supplied shall be the place where transport takes place, having regard to the distances covered;
(c) the place of the supply of services relating to: - cultural, artistic, sporting, scientific, educational, entertainment or similar activities, including the activities of the organizers of such activities, and where appropriate, the supply of ancillary services,
- ancillary transport activities such as loading, unloading, handling and similar activities,
- valuations of movable tangible property,
- work on movable tangible property,
shall be the place where those services are physically carried out;
(d) in the case of hiring out of movable tangible property, with the exception of all forms of transport, which is exported by the lessor from one Member State with a view to its being used in another Member State, the place of supply of the service shall be the place of utilization;
(e) the place where the following services are supplied when performed for customers established outside the Community or for taxable persons established in the Community but not in the same country as the supplier, shall be the place where the customer has established his business or has a fixed establishment to which the service is supplied or, in the absence of such a place, the place where he has his permanent address or usually resides: - transfers and assignments of copyrights, patents, licences, trade marks and similar rights,
- advertising services,
- services of consultants, engineers, consultancy bureaux, lawyers, accountants and other similar services, as well as data processing and the supplying of information,
...
Best regards,
Ralf
| | | | Heinrich Pesch
Finland
Local time: 06:18
Member (2003)
Finnish to German
+ ...
You charge Italian VAT to Italian customers and to private customers in teh EU, but no VAT to foreign businesses. At the same time you can reduce the VAT you pay (phone bill, stamps, business utilities, internet) from the VAT you pay to the tax authorities. So if in one month you invoice 1000 Euro from your Italian customers and the VAT rate is 20 %, and you have paid a total of 40 Euro VAT for services etc. you pay 200 minus 40 Euro = 160 Euro.
But do as Ralf said, ask your advisers.
... See more You charge Italian VAT to Italian customers and to private customers in teh EU, but no VAT to foreign businesses. At the same time you can reduce the VAT you pay (phone bill, stamps, business utilities, internet) from the VAT you pay to the tax authorities. So if in one month you invoice 1000 Euro from your Italian customers and the VAT rate is 20 %, and you have paid a total of 40 Euro VAT for services etc. you pay 200 minus 40 Euro = 160 Euro.
But do as Ralf said, ask your advisers.
Regards
Heinrich ▲ Collapse
| | | | fionainrome
Italy
Local time: 05:18
Italian to English
TOPIC STARTER | So basically... | Jan 10, 2008 |
Thanks, so basically if I'm dealing with foreign businesses I don't metion VAT.
That takes a weight off my chest.
Does anyone have anything to say about the prices I mentioned above?
Are they fair (to me and or them)?
Grazie!
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NMR (X)
France
Local time: 05:18
French to Dutch
+ ...
| You don't pay VAT | Jan 10, 2008 |
You don't pay VAT, you are only collecting it on behalf of the tax authorities. That's why your invoices should mention the price without VAT (your turnover), the VAT amount (to be collected) and total price (the price your client will have to pay). Once you register for VAT, you'll have to mention it on ALL your invoices, except on those to companies within the EU (VAT = 0%).
From the collected VAT you deduct the VAT of your expenses (the VAT on your computer, software, phone, offi... See more You don't pay VAT, you are only collecting it on behalf of the tax authorities. That's why your invoices should mention the price without VAT (your turnover), the VAT amount (to be collected) and total price (the price your client will have to pay). Once you register for VAT, you'll have to mention it on ALL your invoices, except on those to companies within the EU (VAT = 0%).
From the collected VAT you deduct the VAT of your expenses (the VAT on your computer, software, phone, office rent, etc.). The remaining has to be reversed to your tax authorities but see with your local tax advisors for the formalities. ▲ Collapse
| | | | Heinrich Pesch
Finland
Local time: 06:18
Member (2003)
Finnish to German
+ ...
| Seems low to me | Jan 10, 2008 |
One minute subtitling for 3.50 seems rather low. How many minutes can you do in one hour. Then you know what to charge.
| | | | fionainrome
Italy
Local time: 05:18
Italian to English
TOPIC STARTER
Heinrich Pesch wrote:
One minute subtitling for 3.50 seems rather low. How many minutes can you do in one hour. Then you know what to charge.
Well, this is for translation of subtitling only, so it's really just a matter of translating. Do you still think it's low? That's good news to me. Do you mean that agencies abroad (especially Uk, US) would be happy to pay this?
On a good day I'll do 15 minutes of translation for subtitling in one hour. Obviously 3.50 euros is inlcuding taxes, so I would end up with quite a bit less in the end.
Do you think I should ask for more?
Thanks
| | | | Heinrich Pesch
Finland
Local time: 06:18
Member (2003)
Finnish to German
+ ...
| How about quality | Jan 11, 2008 |
If your customer is satisfied with the quality of your subtitles then all is ok. But it seems subtitling is not paid very well, and one hour of movie or tv might require at least one day of work. But the market decides.
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