Resident in Portugal, Swiss client; VAT implications?
Thread poster: Christopher Fitzsimons

Christopher Fitzsimons
Switzerland
Local time: 05:34
Portuguese to English
+ ...
Jul 20, 2011

I have recently worked for a Swiss client (a company) and am resident in Portugal and VAT registered here. Under the EU VAT reverse charge mechanism I do not charge any of my clients VAT as they are all businesses located within the EU, outside of Portugal. I am only required to charge VAT to companies and individuals in Portugal, to individuals within the EU and to everyone outside the EU (companies and individuals) however none of my clients fall into any of these categories so at present I do... See more
I have recently worked for a Swiss client (a company) and am resident in Portugal and VAT registered here. Under the EU VAT reverse charge mechanism I do not charge any of my clients VAT as they are all businesses located within the EU, outside of Portugal. I am only required to charge VAT to companies and individuals in Portugal, to individuals within the EU and to everyone outside the EU (companies and individuals) however none of my clients fall into any of these categories so at present I do not charge VAT to anyone.

However... as Switzerland is a bit of a special case, given that it is not part of the EU but is part of the European Free Trade Association/Schengen Area, does anyone know whether I am required to charge VAT to my Swiss client...?
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Allison Wright (X)  Identity Verified
Portugal
Local time: 04:34
Finanças Jul 21, 2011

Christopher Patrick Fitzsimons wrote:
However... as Switzerland is a bit of a special case, given that it is not part of the EU but is part of the European Free Trade Association/Schengen Area, does anyone know whether I am required to charge VAT to my Swiss client...?


You should be able to get a response via e-mail from http://www.portaldasfinancas.gov.pt/pt/home.action or by phoning the Finanças in your area.
I would advise the e-mail option, since then you will have an official reply in writing.


 

RobinB  Identity Verified
United States
Local time: 22:34
German to English
No VAT to CH Jul 21, 2011

You don't charge VAT to clients in Switzerland because it's outside the EU. No special case, real simple!

Robin


 

Gianluigi Desogus, PhD  Identity Verified
Portugal
Local time: 03:34
English to Italian
+ ...
Charging VAT outside Europe? Jul 21, 2011

Christopher Patrick Fitzsimons wrote:

I am only required to charge VAT to companies and individuals in Portugal, to individuals within the EU and to everyone outside the EU (companies and individuals) however none of my clients fall into any of these categories so at present I do not charge VAT to anyone.


I live in Portugal too and never charged VAT to my US-based clients, for instance.
Are you sure you are supposed to charge VAT to entities outside the EU?
According to my accountant this is not the case.

G.


 

Sandra B.
Portugal
Local time: 04:34
English to Portuguese
+ ...
No VAT Jul 21, 2011

I have clients in Switzerland and I'm also based in PT and VAT registered and no VAT should be charged.

 

Christopher Fitzsimons
Switzerland
Local time: 05:34
Portuguese to English
+ ...
TOPIC STARTER
No VAT to Swiss clients! Jul 21, 2011

Hello all,

Thanks for your answers.

I have been going through several different resources to try to verify what the correct procedure is and found the following information which seems to confirm everyone's experience:

"Os serviços de tradução, quer efectuados a por pessoas colectivas, quer por trabalhadores independentes, configuram o tipo de operações previstas no art.º 6º, n.º 11, alínea c) do CIVA.

Por este facto, as prestações d
... See more
Hello all,

Thanks for your answers.

I have been going through several different resources to try to verify what the correct procedure is and found the following information which seems to confirm everyone's experience:

"Os serviços de tradução, quer efectuados a por pessoas colectivas, quer por trabalhadores independentes, configuram o tipo de operações previstas no art.º 6º, n.º 11, alínea c) do CIVA.

Por este facto, as prestações de serviços de tradução efectuadas a um adquirente domiciliado num país não pertencente à Comunidade Europeia, não se encontram sujeitas a IVA em Portugal."

This information comes from a tax workshop I attended in Portugal this year, specifically for translators, so should be up to date and correct.
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Ricardo Gouveia  Identity Verified
Local time: 04:34
English to Portuguese
+ ...
VAT only for EU Jul 24, 2011

I have been through the same question for the whole week, also regarding Swiss clients, unfortunately I have only seen this topic today.
My mother happens to work in the Ministry and confirmed to me most of my taxation issues and questions. Christopher's post is complete and correct. Other than that (but probably not very informative except for starting translators who may eventually see this topic), individual workers only have to charge VAT when their annual revenue is superior to €10.
... See more
I have been through the same question for the whole week, also regarding Swiss clients, unfortunately I have only seen this topic today.
My mother happens to work in the Ministry and confirmed to me most of my taxation issues and questions. Christopher's post is complete and correct. Other than that (but probably not very informative except for starting translators who may eventually see this topic), individual workers only have to charge VAT when their annual revenue is superior to €10.000, then the % varies according to many categories.
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Resident in Portugal, Swiss client; VAT implications?

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