VAT on invoice to US client
Thread poster: Norskpro

Norskpro
Sweden
Local time: 14:27
Member
English to Norwegian
+ ...
Nov 25, 2015

I have a registered company in Europe. I have been asked to translate something for a client in the US. In Europe, within the EU, I write "VAT reversed" on the invoice, but I feel uncertain about how to deal with VAT when invoicing to an American company. I am interested in knowing what others do when it comes to VAT.

 

Angela Rimmer  Identity Verified
United Kingdom
Local time: 13:27
Member (2014)
German to English
+ ...
VAT is not applicable outside EU Nov 25, 2015

You don't charge VAT to companies in the US. Simple!

 

2G Trad  Identity Verified
Italy
Local time: 14:27
Member (2000)
English to Italian
+ ...
VAT rules for selling services to non-EU clients Nov 25, 2015

Norskpro:
I have a registered company in Europe. I have been asked to translate something for a client in the US. In Europe, within the EU, I write "VAT reversed" on the invoice, but I feel uncertain about how to deal with VAT when invoicing to an American company. I am interested in knowing what others do when it comes to VAT.


From the Cross-border VAT page of the EU website:
If you provide services to customers outside the EU, you normally do not charge VAT (but if the service is used in another EU country, that country can decide to levy the VAT), though you may still deduct the VAT you yourself have paid on your related expenses (goods/services bought in specifically to make those sales).

Cheers
Gianni


 

Norskpro
Sweden
Local time: 14:27
Member
English to Norwegian
+ ...
TOPIC STARTER
Thank you Nov 25, 2015

Thank you both for your replies. I am aware that I should not charge VAT to US companies. But what do I put on the invoice to the company that I do the translation for? Do I have to specify that they pay any required US taxes? Do I just ignore the matter altogether?

 

Kevin Fulton  Identity Verified
United States
Local time: 08:27
German to English
Don't confuse the US customer Nov 25, 2015

Do I have to specify that they pay any required US taxes? Do I just ignore the matter altogether?


It's not your concern whether the US client pays taxes. There is no VAT in the US. Any purchases a US company makes is generally not taxed, only sales (and that depends on the state where the company does business).

Just ignore the issue.


 

Thomas T. Frost  Identity Verified
Member (2014)
Danish to English
+ ...
Nothing Nov 25, 2015

Norskpro wrote:

But what do I put on the invoice to the company that I do the translation for?


Nothing VAT-related.

Norskpro wrote:

Do I have to specify that they pay any required US taxes?


No, that's their own problem, not yours.

US sales tax is only levied on consumers anyway, not on businesses. It doesn't work like VAT.


 

Norskpro
Sweden
Local time: 14:27
Member
English to Norwegian
+ ...
TOPIC STARTER
Only consumer goods Nov 25, 2015

Thomas T. Frost wrote:

No, that's their own problem, not yours.

US sales tax is only levied on consumers anyway, not on businesses. It doesn't work like VAT.


If they only have tax on consumer goods, then there should be no issue at all. Thank you. Very helpful.


 


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VAT on invoice to US client

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