Chargeability of VAT between EU states
Thread poster: Tony Keily

Tony Keily  Identity Verified
Local time: 10:54
Italian to English
+ ...
Sep 26, 2006

I'm resident in Italy and the local tax authorities recently questioned my practice of not charging VAT on jobs done for clients/agencies in other EU territories.

My understanding is that the translation service takes place where the service provided is utilised, pursuant to Directive 6, 77/388/CEE Title VI Art. 9 Para. 2 (e).

What do other Italian/EU residents do? What is their understanding of the legal foundation of their practice?

[Edited at 2006-09-26 18:39]


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Andy Watkinson
Spain
Local time: 10:54
Member
Catalan to English
+ ...
VAT not applicable Sep 26, 2006

Hi Tony,

I'm resident in Spain and, when billing clients in the UK, have been advised by my "gestor" (as you speak Catalan you'll know who he is) that VAT is not charged on translation services between EU countries.

Other translators in the same situation have also received similar advice.

Cheers,
Andy.


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italia  Identity Verified
Germany
Local time: 10:54
Italian to German
+ ...
how about posting your query in the Italian forum? Sep 26, 2006

Tony
How about re-posting your query in the Italian form?
You will certainly get more replies.
HTH
Good luck!

[Edited at 2006-09-26 13:50]


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CathyFS  Identity Verified
Local time: 09:54
German to English
+ ...
No VAT on services between EU countries Sep 26, 2006

A freelancer is a service provider, and EU members only charge VAT for services they provide to clients within their own country. For example, I live and work in Ireland, and only charge VAT to clients here in Ireland. I do a lot of work for clients in Germany and Italy, but I don't charge them VAT. Include their VAT no. (and yours, where applicable) on your invoice and also include the term "VAT reversed". This means that it's up to your client in the other EU country to sort out the VAT on their side.

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xxxLia Fail  Identity Verified
Spain
Local time: 10:54
Spanish to English
+ ...
No VAT, but a special declaration (in Spain) Sep 26, 2006

Tony Keily wrote:

I'm resident in Italy and the local tax authorities recently questioned my practice of not charging VAT on jobs done for clients/agencies in other EU territories.

My understanding is that the translation service takes place where the service provided is utilised, pursuant to Directive 6, 77/388/CEE Title VI Art. 9 Para. 2 (e).

What do other Italian/EU residents do? What is their undertsanding of the legal foundation of their practice?




As Andy says, between EU countries no VAT is charged. So those of us based in Spain, for example, billing Germany, will not add VAT.

In Spain, whenever we make intracommunity sales or purchases, we complete a special form (Modelo 349) every 3 months, listing each company, their VAT number, and the amount of the sale/purchase. I'm sure similar systems exist in other countries to keep track of sales/purchases and VAT.


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Amy Williams  Identity Verified
United Kingdom
Local time: 09:54
Italian to English
+ ...
Yes VAT... sometimes Sep 26, 2006

Hi Tony,

Assuming you are VAT registered (?):
I'm not sure about the fine print in Italy so I'd advise getting in touch with your advisor. There are cases where VAT is collected, such as on services to clients in other EU Member States who are not VAT registered.

Best,
Amy


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Chargeability of VAT between EU states

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