Invoicing a UK customer from Spain - VAT?
Thread poster: Aurélie DANIEL

Aurélie DANIEL  Identity Verified
Spain
Local time: 13:42
English to French
+ ...
Dec 31, 2004

I have searched on the forums and on the internet but could not find the information I am looking for...

I've always worked with Spanish customers only, and now I need to issue an invoice for a UK customer. My questions are:

- I understand that if my customer has an intracommunity VAT number, I just state mine and his on the invoice and the transaction will be VAT exempt.
If my NIF is X-1111111-Y, is it safe to just add "ES" in front (and take out the dashes?)? And should I take any steps to validate this with an official body?

-If my customer doesn't have this number, then I will invoice the VAT. I guess the percentage will be 16%, the same I use in Spain, right?

Sorry for these silly questions, I am getting contradictory, confusing answers!

Thanks a lot and HAPPY NEW YEAR! I wish you all to get a lot of interesting, well-paid jobs, from nice customers who will praise your work! ;o)

Aurélie


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Bernadette Mora  Identity Verified
Spain
Local time: 13:42
Member (2004)
English to Spanish
+ ...
No VAT Dec 31, 2004

Hello

Every time I issue an invoice to a foreign country, I don't add any VAT. A friend of mine, who works as a legal adviser, provided me with this information. You only have to add the corresponding VAT if you invoice to a person and not to a company, or something like this, that's what she told me, as far as I remember...
So everything will depend on your customer. Whether he is an agency/company or not.
Regards,
Bernadette

[Edited at 2004-12-31 17:01]


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Parrot  Identity Verified
Spain
Local time: 13:42
Member (2002)
Spanish to English
+ ...
Strictly Dec 31, 2004

Aurélie DANIEL wrote:

- I understand that if my customer has an intracommunity VAT number, I just state mine and his on the invoice and the transaction will be VAT exempt.


No one's VAT-exempt. VAT = 0% at source is something else (will be VAT = X% depending on country of destination).


If my NIF is X-1111111-Y, is it safe to just add "ES" in front (and take out the dashes?)? And should I take any steps to validate this with an official body?


Yes. Second question: test first if the VIES accepts it, since the register of intracommunity operators is being separated from internal trade these days and a few of us who registered using form 037 are no longer on the VIES (affected professionals have to update to form 036).


-If my customer doesn't have this number, then I will invoice the VAT. I guess the percentage will be 16%, the same I use in Spain, right?


16%.



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Maria Luisa Duarte  Identity Verified
Spain
Local time: 13:42
English to Portuguese
+ ...
Supplying to Customers in the European Union Dec 31, 2004

I hope the following helps to answer your query!

Kind Regards!

MLD



European Union
1. Prices and Invoices
Invoices will be presented in EURO. All prices are including VAT at 16 %. Each shipment is accompanied by an invoice showing sum excl. VAT, sum incl. VAT and VAT itself.

Countries outside the European Union
1. Prices and Invoices
Invoices will be presented in EURO. VAT does not apply. The VAT will automatically be deducted from your invoice.


http://www.sitpro.org.uk/trade/exporteu.html
http://www.corporate-premier.com/english/vat.html


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Williamson  Identity Verified
United Kingdom
Local time: 12:42
Flemish to English
+ ...
Euro-invoice to UK Dec 31, 2004

Isn't it a bid odd to send a EURO-invoice to the UK??



[Edited at 2004-12-31 20:19]


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Ralf Lemster  Identity Verified
Germany
Local time: 13:42
English to German
+ ...
...why not? Jan 1, 2005

Hi Williamson,
Isn't it a bid odd to send a EURO-invoice to the UK??

Not at all - I invoice all of my UK-based customers in euros.

Best regards,
Ralf


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Erika Lundgren  Identity Verified
Local time: 13:42
Member (2003)
Spanish to Swedish
+ ...
No VAT to companies with no offices at all in Spain Jan 1, 2005

I live in Spain, and pay all my taxes in Spain, and I encountered the same problem myself when I started invoicing companies in the UK some years ago.

I always try to get my information directly from Agencia Tributaria, in order to be on the safe side, so I phoned their information number and asked. They told me that if the company is outside Spain (even though it is within EU), and have no offices at all in Spain, you do not add IVA to the invoice. It does not matter what currency the invoice is in. You should always really state the client's VAT number for tax purposes on the bill though. Not that anyone will check it over the countries' borders. But you definitely need it, for the incredibly remote and not even probable possibility "Hacienda" would one day want to check your books.

I also found out that in the yearly VAT declaration you state Base imponible in one place, as the total invoiced with VAT and all the rest of it, and Base total or something like that in another place as the total invoice during the year. But that is the only VAT form where you ever have to include the money you have invoiced outside Spain.

Anyway, Hacienda has a very good information service where they help you with all sorts of questions. You can find it on their website (http://www.agenciatributaria.es/) clicking on La Agencia Tributaria/Informacion y telefonos.

Hope you find this information useful!

Happy New Year to all!

Erika


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Timothy Barton
Local time: 13:42
French to English
+ ...
Agree with Erika Jan 1, 2005

The above information is what I have been told. I have worked with a company in France, and I put no VAT. This was what the Agency told me to do and what the Hacienda told me to do. I don't quite understand it, because as far as I understood, intra-community transactions required VAT payment.

You do need to fill something in on your Modelo 130 to state that you will have intra-community transactions. There is then a website on which you can check your inclusion

You shold find some of the information you require on this thread (http://www.proz.com/topic/24964) when I was asking the same thing (see question 4).


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Williamson  Identity Verified
United Kingdom
Local time: 12:42
Flemish to English
+ ...
Carrying-over Jan 2, 2005

The entire system is based upon carrying-over taxes to an entity (company/private person subject to VAT) in another Member-State (French: Report de perception) who has to pay VAT to its/his/her local VAT-administration.
It is a simple principle, but confusion about this has occurred time and again on this forum.
Reading the explanation by an Austrian lady on Translatorscafé.com about VAT with references to E.U.-legislation might by useful. Unfortunately, she did not post it here.
--
In the UK the currency is £. Don't you expect people there to pay in £. Would be nice if I could write invoices in euro for the US.

[Edited at 2005-01-02 08:54]


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Anjo Sterringa  Identity Verified
Spain
Local time: 13:42
Member (2003)
English to Dutch
+ ...
Information that should be on your invoice Jan 2, 2005

First of all a confirmation of what has been said before: tax is "0%" if you are a company/autónomo and invoice a European company THAT HAS A VAT number. (Not all companies do in the UK, but the bigger agencies usually have one). "0%" because it is not correct to say exempt - the tax is paid in the country you deliver the goods/service to.

The whole idea of transferring/reverse charging the obligation to pay VAT to the buyer within Europe is based on this European Directive (77/388)
http://europa.eu.int/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=en&numdoc=31977L0388

This Directive was amended in 2001, with a set of rules on electronic invoicing (2001/115/EC)
http://europa.eu.int/comm/taxation_customs/taxation/vat/traders/invoicing_rules/index_en.htm
From the FAQ's:
1.4.1 Obligatory information for all invoices
An invoice must contain the following information:
a. the date of issue;
b. a sequential number that uniquely identifies the invoice;
c. the supplier's VAT identification number;
d. the customer's VAT identification number (only when the customer is liable to pay the tax on the supply);
e. the supplier's full name and address;
f. the customer's full name and address;
g. a description of the quantity and nature of the goods supplied or services rendered;
h. the date of the supply or payment (if different from the date of supply);
i. the VAT rate applied;
j. the VAT amount payable;
k. a break-down of the VAT amount payable per VAT rate or exemption;
l. the unit price of the goods or services exclusive of tax, discounts or rebates (unless included in the unit price);
1.4.2 Supplementary information required in certain cases

In some cases, additional information must be included on the invoice:
a. where:
· the supply is exempted; or
· the customer is liable to pay the tax (the supply is subject to the 'reverse charge procedure')
the invoice must contain
· a statement explaining that this is the case; or
· a reference to the appropriate (Community or national) legislation that deems the supply exempt or subject to the reverse charge procedure;

Also see: www.proz.com/topic/24019

Then: What currency do you invoice in? I always invoice in Euros - as I am based in Spain. I send invoices to the UK in Euros. It's logical- that is why I never understand agencies in Europe asking translators to quote in US$ as they do business in the Euro zone! Customers pay in the currency of the supplier.


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Ralf Lemster  Identity Verified
Germany
Local time: 13:42
English to German
+ ...
Currency is one of the details to be negotiated Jan 2, 2005

Hi again,
Slightly OT, but worth looking into.

In the UK the currency is £. Don't you expect people there to pay in £.

I would expect sterling to be used when both supplier and recipient of a service are based in the UK. But in any case, the currency to be used is subject to negotiation.

Would be nice if I could write invoices in euro for the US.

...and what stops you from doing that? Of course you would need to quote in euros in the first place.

However, it's worth bearing in mind that, even if you quote and invoice in your base currency (e.g. in euro), you may still be exposed to currency fluctuations, as changing exchange rates will affect your competitiveness.

Best regards,
Ralf


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inselaffe
Local time: 13:42
German to English
Canary Isles / ZEC and IGIC - invoicing business clients in other EU member states Jan 11, 2009

Can anyone confirm whether the ruling for IVA on the mainland applies in the same way to IGIC in the Canary Isles?

See also this thread: http://www.proz.com/topic/83921?pg=e

Many thanks in advance.

Richard

[Subject edited by staff or moderator 2009-01-11 15:39 GMT]

[Edited at 2009-01-11 19:52 GMT]


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