Pages in topic:   [1 2] >
What "certificado" does my Spanish client need so I can bill them from the U.S.?
Thread poster: maryblack

maryblack  Identity Verified
United States
Local time: 02:07
Member (2013)
Spanish to English
+ ...
Dec 28, 2011

I have been a freelancer in Spain for around 10 years, and since I've relocated to the United States I am officially setting myself up here as a sole proprietor, although I plan to keep most of my clients in Spain and the vast majority have no issues with this set-up. However, I have one client that has told me that to operate I need a "certificado de residencia fiscal en EEUU con mencion del convenio entre EEUU y Espana para evitar doble imposicion". In other words, I need a certificate stating that my business is now in the U.S. and I'm paying taxes here so that my Spanish client won't take out IRPF/Income Tax there. Got it. The only hitch is that as a sole proprietor in the US who hasn't started operating yet, there is no "proof" that I am operating here since there is no need to even report/notify/announce that I'm operating until I file my first quarterly taxes in early April. (I have checked all this out with an American accountant who has other international clients.) So... how would the IRS even know I'm operating? Can I just ask for a letter? They don't just issue random letters, do they? I have no ID because I have no employees nor do I plan to have any. Has anyone else run up against this problem, where one country requests a document from another country that doesn't actually issue that kind of document!
Thanks in advance!!!!


Direct link Reply with quote
 

Sheila Wilson  Identity Verified
Spain
Local time: 08:07
Member (2007)
English
+ ...
Invoice address? Dec 28, 2011

Have you invoiced this client? If so, did you use your US address? As far as I know, that's proof enough. The point of tax is the point of invoice address (or words to that effect - I'm no legal eagle). On the other hand, if you have kept any remnants of your life in Spain in your invoice, then they will have that worry.

Sheila


Direct link Reply with quote
 

LEXpert  Identity Verified
United States
Local time: 02:07
Member (2008)
Croatian to English
+ ...
EIN? W9? Dec 28, 2011

Do you have a Employer ID number from the IRS?
You can - and should - get one, even as a sole proprietor. I provide it on my invoices to the couple of Spanish clients I have and they have never asked for anything else.
I would also think that your W9 would do the trick (the benefit of the EIN being that you can put that on the W9 instead of your SSN...)



[Edited at 2011-12-28 18:52 GMT]


Direct link Reply with quote
 

maryblack  Identity Verified
United States
Local time: 02:07
Member (2013)
Spanish to English
+ ...
TOPIC STARTER
Thanks to both of you! Dec 28, 2011

Sheila, I haven't invoiced this client yet because I will officially start operating out of the U.S. on January 1st. They don't seem to think that the billing address is enough.
Rudolf, I don't have an EIN because I don't plan to employ anyone. However, this might be an easy way around it. Does it matter that I'm a sole prop. and don't plan to ever have any employees? And as for the W9, it's a vicious circle, isn't it?, needing to bill before they can issue a W9?
Thanks so much to both of you!


Direct link Reply with quote
 

Nicole Schnell  Identity Verified
United States
Local time: 00:07
English to German
+ ...
FEIN Dec 28, 2011

maryblack wrote:

Sheila, I haven't invoiced this client yet because I will officially start operating out of the U.S. on January 1st. They don't seem to think that the billing address is enough.
Rudolf, I don't have an EIN because I don't plan to employ anyone. However, this might be an easy way around it. Does it matter that I'm a sole prop. and don't plan to ever have any employees? And as for the W9, it's a vicious circle, isn't it?, needing to bill before they can issue a W9?
Thanks so much to both of you!


Hi Mary,
As a self-employed person you are a business entity and you need this tax number to file your taxes with the IRS. You will receive a separate account number from the state. It doesn't matter if you have employees or not.


Direct link Reply with quote
 

Teresa Borges
Portugal
Local time: 08:07
Member (2007)
English to Portuguese
+ ...
I suppose they are referring Dec 28, 2011

to this convention http://www.irs.gov/pub/irs-trty/spain.pdf. See also, http://www.irdcec.it/system/files/imce/aree-tematiche/pac/FINT_modello%20USA.pdf. I had, and many other Prozians as far as I know, exactly the same problem concerning clients in Portugal, Japan, Spain, Greece, etc.

Direct link Reply with quote
 

maryblack  Identity Verified
United States
Local time: 02:07
Member (2013)
Spanish to English
+ ...
TOPIC STARTER
For Nicole and Teresa Dec 28, 2011

Nicole, both the local Small Business Incubator and my accountant have told me that I do not, in fact, need the EIN to operate as a sole proprietor. However, it seems that doing so won't hurt and might help with my international clients, so I'll go ahead and do it.
Teresa, neither link works! Any hints? Also, any idea how I can get a "certificate" mentioning the convention?

Thanks so much to everyone for your help!!


Direct link Reply with quote
 

Nicole Schnell  Identity Verified
United States
Local time: 00:07
English to German
+ ...
Accountants and consorts Dec 29, 2011

maryblack wrote:

Nicole, both the local Small Business Incubator and my accountant have told me that I do not, in fact, need the EIN to operate as a sole proprietor.


I have fired two tax accountants until I finally found one who actually has a clue about small businesses. If you don't file your taxes as a small business, how will you be able to deduct any business expenses?


Direct link Reply with quote
 

maryblack  Identity Verified
United States
Local time: 02:07
Member (2013)
Spanish to English
+ ...
TOPIC STARTER
As a sole proprietor, I AM my business... Dec 29, 2011

right?!?! And according to my accountant, can deduct business expenses.

Direct link Reply with quote
 

Nicole Schnell  Identity Verified
United States
Local time: 00:07
English to German
+ ...
Addendum Dec 29, 2011

Instead of "tax deductibles" I probably should have used the term "tax savings". Earnings from a sole proprietorship are subject to self-employment taxes, too. However, with a corporation, only salaries (and not profits) are subject to such taxes. This can save you thousands of dollars per year. And nobody can take your car or your house if things go down the drain.

Direct link Reply with quote
 

Nicole Schnell  Identity Verified
United States
Local time: 00:07
English to German
+ ...
Exactly. Dec 29, 2011

maryblack wrote:

right?!?! And according to my accountant, can deduct business expenses.


Please see my addendum (never write forum posts in a rush... blush). Yes, of course you ARE a business. Other than that, as a sole proprietor you are fully liable for everything with all your personal assets (shudder...)


Direct link Reply with quote
 

maryblack  Identity Verified
United States
Local time: 02:07
Member (2013)
Spanish to English
+ ...
TOPIC STARTER
Thanks! Dec 29, 2011

Thanks so much to Nicole and everyone else for your help clarifying this murky situation!!

Direct link Reply with quote
 

Teresa Borges
Portugal
Local time: 08:07
Member (2007)
English to Portuguese
+ ...
Sorry if the links don't work... Dec 29, 2011

Try googling "INCOME TAX CONVENTION WITH SPAIN, WITH PROTOCOL".

You will find here the form (in Portuguese and English): http://info.portaldasfinancas.gov.pt/NR/rdonlyres/6002B253-E9C3-4933-874C-1CB961169848/0/rfi-21%20(2008).pdf

Hope it is useful for you...


Direct link Reply with quote
 

maryblack  Identity Verified
United States
Local time: 02:07
Member (2013)
Spanish to English
+ ...
TOPIC STARTER
Thanks, Teresa! Dec 29, 2011

It is useful to see... if only I could find an American version. Search as I may, I can't find a specific form to fill out, and in the convention there is no mention of a form. Still stymied...

Direct link Reply with quote
 

Teresa Borges
Portugal
Local time: 08:07
Member (2007)
English to Portuguese
+ ...
Mary Dec 29, 2011

Are you still in Spain? Try contacting the Agencia Tributaria http://www.agenciatributaria.es/AEAT.internet/Inicio.shtml

Direct link Reply with quote
 
Pages in topic:   [1 2] >


To report site rules violations or get help, contact a site moderator:


You can also contact site staff by submitting a support request »

What "certificado" does my Spanish client need so I can bill them from the U.S.?

Advanced search







BaccS – Business Accounting Software
Modern desktop project management for freelance translators

BaccS makes it easy for translators to manage their projects, schedule tasks, create invoices, and view highly customizable reports. User-friendly, ProZ.com integration, community-driven development – a few reasons BaccS is trusted by translators!

More info »
memoQ translator pro
Kilgray's memoQ is the world's fastest developing integrated localization & translation environment rendering you more productive and efficient.

With our advanced file filters, unlimited language and advanced file support, memoQ translator pro has been designed for translators and reviewers who work on their own, with other translators or in team-based translation projects.

More info »



Forums
  • All of ProZ.com
  • Term search
  • Jobs
  • Forums
  • Multiple search