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Intra-community VAT Number - is it necessary?
Thread poster: Carla Davidson

Mariana Rohlig Sa  Identity Verified
Germany
Local time: 16:05
Member (2012)
English to German
+ ...
disclaimer May 18, 2011

Setti Mulari wrote:

I've been through this same rodeo before. Now even Finnish companies want the VAT number or they can't pay me. However, I have a standard response with the link to HMRC website where it states that I don't have to register for VAT.

All queries stopped, however, when I added a short disclaimer at the bottom of my invoice template. It clearly states that as per British tax laws, I am exempt from VAT. Job done. Nobody's asked any questions or challenged it in any way.



Hello Setti,

I am having the same problem and am about to send off an invoice. Would it be very cheeky to ask what wording you use in the disclaimer?

Much appreciated,
Mariana


 

Maria Hoskins  Identity Verified
Spain
Local time: 16:05
Member (2011)
Spanish to English
In case they are of use: May 18, 2011

Here are mine:

VAT exempt invoice in accordance with article 196 of Directive 2006/112/EC. This service is subject to the VAT reverse charge.
I certify that in accordance with articles 214.2 and 272.1 and letter d of the 2006/112/EC Directive I [name] do not have a VAT number
Applicable national legislation: HMRC Notice 700/1 (Apr 2010) Section 2 ff

Factura exenta de IVA en aplicación de artículo 196 de la Directiva 2006/112/CE. Este servicio está sujeto
... See more
Here are mine:

VAT exempt invoice in accordance with article 196 of Directive 2006/112/EC. This service is subject to the VAT reverse charge.
I certify that in accordance with articles 214.2 and 272.1 and letter d of the 2006/112/EC Directive I [name] do not have a VAT number
Applicable national legislation: HMRC Notice 700/1 (Apr 2010) Section 2 ff

Factura exenta de IVA en aplicación de artículo 196 de la Directiva 2006/112/CE. Este servicio está sujeto a la inversión del sujeto pasivo del IVA.
Yo [nombre] certifico que no tengo número de [sic] del IVA según los artículos 214.2 y 272.1 y la letra d de la Directiva 2006/112/CE.
Legislación nacional applicable (reino unido): Aviso HMRC 700 / 1 (abril 2010) Sección 2 y siguientes



[Edited at 2011-05-18 10:49 GMT]

[Edited at 2011-05-18 10:51 GMT]

[Edited at 2011-05-18 10:52 GMT]

[Edited at 2011-05-18 10:52 GMT]
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Timothy Barton
Local time: 17:05
French to English
+ ...
Explanation May 18, 2011

As has already been mentioned, we need the number to complete tax form 349. This website explains it well:

http://www.advoco.es/hot-topics/47-invoicing-to-and-from-spain-new-vat-rules.html

If anyone has found a Spanish-based company or freelancer able to accept invoices without a VAT number being supplied, I would love them to ask
... See more
As has already been mentioned, we need the number to complete tax form 349. This website explains it well:

http://www.advoco.es/hot-topics/47-invoicing-to-and-from-spain-new-vat-rules.html

If anyone has found a Spanish-based company or freelancer able to accept invoices without a VAT number being supplied, I would love them to ask the company or freelancer how they declared the transaction on Modelo 349, or what they did instead.

When the invoice goes in the other direction (if someone based in Spain, like me, invoices a non-VAT-registered client in another country), then we have no choice but to treat the client as a private consumer by charging Spanish VAT if we are not given a valid VAT number.
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Christine Andersen  Identity Verified
Denmark
Local time: 16:05
Member (2003)
Danish to English
+ ...
In Denmark am supposed to charge VAT if you are not registered... May 19, 2011

In Denmark the income threshold for VAT registration is low, but the tax procedures for comparatively small fry are not too complicated, surprisingly enough.

Keeping the rules is not too difficult, but if clients are not VAT registered, then we are supposed to charge them 25% VAT. When we make tax returns on line, either we have to charge VAT, or we have to type in the client's VAT number. Unfortunately, other numbers are not recognised in the system, and if we can't make tax retur
... See more
In Denmark the income threshold for VAT registration is low, but the tax procedures for comparatively small fry are not too complicated, surprisingly enough.

Keeping the rules is not too difficult, but if clients are not VAT registered, then we are supposed to charge them 25% VAT. When we make tax returns on line, either we have to charge VAT, or we have to type in the client's VAT number. Unfortunately, other numbers are not recognised in the system, and if we can't make tax returns on line, the authorities almost don't want to know.

Except that they do make a fair amount of hassle.
By far the easiest thing to do in Denmark is to charge you VAT and leave you to reclaim it. But I do appreciate that 25% is steep. That is just the flat rate on EVERYTHING here...
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Marcel Gomez  Identity Verified
Peru
Local time: 10:05
Member (2017)
English to Spanish
+ ...
How about China residents ? Jan 31, 2012

I live in China. New client in Romania has asked for my registration/tax/vat code.

???????????????????????????


 

Maria Hoskins  Identity Verified
Spain
Local time: 16:05
Member (2011)
Spanish to English
They have no idea what they are talking about! Jan 31, 2012

speedjounetsu wrote:

I live in China. New client in Romania has asked for my registration/tax/vat code.

???????????????????????????



It's a matter of jurisdiction, such things are not applicable outside of the EU and I understand EU law states that the service is provided in the place where it is performed, i.e. in your case China.


 

Charlie Bavington (X)  Identity Verified
Local time: 15:05
French to English
Notice 741A (for the UK) Jan 31, 2012

Maria Hoskins wrote:

It's a matter of jurisdiction, such things are not applicable outside of the EU and I understand EU law states that the service is provided in the place where it is performed, i.e. in your case China.


Since you're in the UK and for the sake of clarity (nit picking, even):

See notice 741A section 8.1.3. - written translation that is not "at an event" (see 8.1.2.) is specifically not supplied where performed, i.e. it is deemed to be supplied wherever the customer is.

Not, however, that this is relevant to the relationship between China and Romania.


 

Maria Hoskins  Identity Verified
Spain
Local time: 16:05
Member (2011)
Spanish to English
Clarification Jan 31, 2012

Charlie Bavington wrote:

Maria Hoskins wrote:

It's a matter of jurisdiction, such things are not applicable outside of the EU and I understand EU law states that the service is provided in the place where it is performed, i.e. in your case China.


Since you're in the UK and for the sake of clarity (nit picking, even):

See notice 741A section 8.1.3. - written translation that is not "at an event" (see 8.1.2.) is specifically not supplied where performed, i.e. it is deemed to be supplied wherever the customer is.

Not, however, that this is relevant to the relationship between China and Romania.


Thanks for the clarification, Charlie! I shall bear that in mind.

Good that at least we both agree that Romania is overreaching itself somewhat here!


 

Maria Hoskins  Identity Verified
Spain
Local time: 16:05
Member (2011)
Spanish to English
Not registered for VAT as I work part-time Jan 31, 2012

... And my earnings are below £75,000, do I need to complete a VAT Sales list?

 

Julia_O_K  Identity Verified
Netherlands
Local time: 16:05
English to Russian
+ ...
No Intra-community VAT - no work? Jun 13, 2012

Hi all,

I am a UK-based translator working with a Spanish agency for over a year. Last week they declared that it is absolutely compulsory for me to have Intra-community VAT for further cooperation. They claimed that they just need me to register in the VAT Information Exchange System (VIES), and for this I don't need a VAT, because I can use my UTR number. They also said Intra-Community VAT number and VAT number in the UK are different things, and I won't have to charge VAT on my
... See more
Hi all,

I am a UK-based translator working with a Spanish agency for over a year. Last week they declared that it is absolutely compulsory for me to have Intra-community VAT for further cooperation. They claimed that they just need me to register in the VAT Information Exchange System (VIES), and for this I don't need a VAT, because I can use my UTR number. They also said Intra-Community VAT number and VAT number in the UK are different things, and I won't have to charge VAT on my invoices.

I called HMRC VAT helpline and they told me absolutely different things. VIES is the system that contains all VAT numbers, so whatever you call it, you need a VAT number to be there. Because my earnings are much lower than the VAT registration threshold of 77K, I don't have to register, but when I do, I will have to charge VAT on every single invoice that I generate. This makes no sense to me, because my services will not be competitively priced then compared to other translators.

I offered the Spanish clients all the remedies I could find on this forum: giving UTR, adding a disclaimer with reference to EU and UK laws about VAT exemption, but they aren't happy with these.

Has anyone managed to resolve a similar situation? Your help and advice will be much appreciated!
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Use GB followed by yor registration number Apr 22, 2016

Dear Carla
I think that as for companies you should have a registration number given by Companies House.
Well, for intra community invoices you have to use your country code, GB U(and not UK or other) followed by your reg. no. For a total of 11 digits.

You might find useful the following link, it helped me a lot:
http://mbharris.co.uk/articles/finance/eurovat/... See more
Dear Carla
I think that as for companies you should have a registration number given by Companies House.
Well, for intra community invoices you have to use your country code, GB U(and not UK or other) followed by your reg. no. For a total of 11 digits.

You might find useful the following link, it helped me a lot:
http://mbharris.co.uk/articles/finance/eurovat/


Let me know how it worked for you then.
Bye-byeee
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Carla Davidson  Identity Verified
Spain
Spanish to English
+ ...
TOPIC STARTER
Solution: request a certificate of residence from HMRC Apr 22, 2016

Hi Liliana,

Thanks for your comment. I posted my query in 2010 but appreciate your comments nonetheless. I have had a few translators contact me since then with the same issue so I thought it would be useful to write a post about the solution I found. I should point out this is valid for UK-based freelancers, although there might be similar alternatives available in other countries.

I discovered that what I needed to do was contact HMRC for a certificate of residence
... See more
Hi Liliana,

Thanks for your comment. I posted my query in 2010 but appreciate your comments nonetheless. I have had a few translators contact me since then with the same issue so I thought it would be useful to write a post about the solution I found. I should point out this is valid for UK-based freelancers, although there might be similar alternatives available in other countries.

I discovered that what I needed to do was contact HMRC for a certificate of residence and explain that I required this for my clients based in Spain and Portugal (I did it by telephone at the time but have seen you can now apply online: https://online.hmrc.gov.uk/shortforms/form/PT_CertOfRes). The certificate essentially states that I pay my taxes in the UK and the UK has a double taxation agreement with Spain and with Portugal (this might be the case too for other countries but these were the only two I was dealing with at the time).

The certificate proves to my clients in Spain and Portugal that they do not have to pay any additional taxes on my behalf, or that the taxes I pay should cancel out any need for them to pay taxes too. The certificates I got even came with a translation into Spanish and Portuguese respectively.

As regards registering for VAT, this could be another solution but I believe more beneficial once your company is earning over the VAT threshold (currently £83,000).

I hope that helps anyone who comes up against this problem with their clients but please share if you have found other alternatives.
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Carla Davidson  Identity Verified
Spain
Spanish to English
+ ...
TOPIC STARTER
Updated link to Certificate of Residence application form Oct 6, 2016

I've just been told the link in my previous post doesn't work so here is the updated link for anyone who needs it: https://online.hmrc.gov.uk/shortforms/form/PT_CertOfRes

 

Pau&Company
United Kingdom
English to Spanish
+ ...
Any official document about this? Dec 19, 2019

Hi,
I keep finding the same problem when trading with Spain, being registered as Self-Employed in the UK. To add more, we are now facing Brexit, which will make things even more confusing. Any help welcome. Thanks!


 
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