Pages in topic:   [1 2] >
Do Americans need a VAT number?
Thread poster: Anna Fitzgerald

Anna Fitzgerald  Identity Verified
France
Local time: 05:16
French to English
May 5, 2005

Hello,

I am an American translator trying to build my client base. Recently, I have been filling out a lot of agency web forms for their databases. They often ask for VAT numbers. Do American translators need one if working with a European company? Is there any equivalent in the US?

Thanks for any help.
anna


Direct link Reply with quote
 
xxxXX789  Identity Verified
Netherlands
Local time: 05:16
English to Dutch
+ ...
Only for EU May 5, 2005

Hi Anna,

My American clients tell me there is no such thing as a VAT number in the States. Within the EU it is very important to have one for clients, as EU regulations require you to state the client's VAT number on your invoice if you do not want to charge VAT to them.

There's probably also a good reason for wanting to know the VAT number of translators.

In principle, the VAT number is the number under which a legal entity is registered at the local tax office.

If possible, simply state there is no such thing as a VAT number in the States. Good luck!

[Edited at 2005-05-05 07:19]


Direct link Reply with quote
 

Steven Sidore  Identity Verified
Germany
Local time: 05:16
Member (2003)
German to English
If you live in the EU, that is May 5, 2005

You do not need a VAT number if you live in the States. You do need a VAT number if you live in the EU, regardless of your nationality.

Good luck,

Steven


Direct link Reply with quote
 

Williamson  Identity Verified
United Kingdom
Local time: 04:16
Flemish to English
+ ...
The US does not have a VAT-system May 5, 2005

As an American you do not need a VAT-number. VAT does not exist in the US. Correct me if I am mistaken: In the US, you have sales-tax which differs from state to state.
If you send a translation to Europe, you export a service.
On that export there are no taxes to be levied.What I do not know is whether on the other end of the line import duties and VAT are to be paid. With import of goods this is the case, but with import of services ????

If a translator based in Europe sends a translation to the US, it is pure export of a service. The same rule applies.


[Edited at 2005-05-05 12:16]


Direct link Reply with quote
 

Daina Jauntirans  Identity Verified
Local time: 22:16
German to English
+ ...
No sales tax on translations May 5, 2005

Williamson wrote:

As an American you do not need a VAT-number. VAT does not exist in the US. Correct me if I am mistaken: In the US, you have sales-tax which differs from state to state.
If you send a translation to Europe, you export a service.
On that export there are no taxes to be levied.What I do not know is whether on the other end of the line import duties and VAT are to be paid. With import of goods this is the case, but with import of services ????

If a translator based in Europe sends a translation to the US, it is pure export of a service. The same rule applies.


[Edited at 2005-05-05 12:16]


You're right. Sales tax does vary from state to state (and Oregon doesn't charge any). US translators don't need to charge sales tax on translations, and we don't have/need VAT nos.


Direct link Reply with quote
 

Kim Metzger  Identity Verified
Mexico
Local time: 22:16
German to English
No VAT for Americans May 5, 2005

As a US American, my invoices for European clients state VAT: not applicable.

But I do pay taxes to the US government. I report business income and pay only the self-employment tax because income under $80,000 from abroad is exempt from income taxes. The self-employment tax is credited to social security taxes - so I'll get it all back in a few years.


Direct link Reply with quote
 
xxxsarahl
Local time: 20:16
English to French
+ ...
VAT/Sales tax in the US May 5, 2005

there is no sales tax on "intangible goods" in the US, which includes services.

Direct link Reply with quote
 

Anna Fitzgerald  Identity Verified
France
Local time: 05:16
French to English
TOPIC STARTER
Thanks, everybody! May 5, 2005

I appreciate your help on this matter. No VAT for me; one less thing to worry about.

Direct link Reply with quote
 
RobinB  Identity Verified
Germany
Local time: 05:16
German to English
Import VAT May 7, 2005

Anna,

Just to clarify the issue: if you're domiciled in the US and sell translations to EU-domiciled clients, no tax appears on your invoice. However, the EU clients must themselves add the relevant VAT to their VAT bill (import VAT), while at the same time deducting it as input VAT. A bureaucratic procedure that you needn't bother yourself about in the slightest.

Robin


Direct link Reply with quote
 

Lothar Kneifel  Identity Verified
Local time: 21:16
German to English
too good to be true? May 20, 2005

Kim Metzger wrote:

As a US American, my invoices for European clients state VAT: not applicable.

But I do pay taxes to the US government. I report business income and pay only the self-employment tax because income under $80,000 from abroad is exempt from income taxes. The self-employment tax is credited to social security taxes - so I'll get it all back in a few years.



I'm pretty sure the $80,000 exemption applies only to US citizens residing abroad. If you reside in the US, you also pay income tax on that first $80,000.


Direct link Reply with quote
 

Heike Reagan  Identity Verified
United States
Local time: 23:16
Member (2004)
German to English
Thank you Lothar, May 25, 2005

Lothar Kneifel wrote:

Kim Metzger wrote:

As a US American, my invoices for European clients state VAT: not applicable.

But I do pay taxes to the US government. I report business income and pay only the self-employment tax because income under $80,000 from abroad is exempt from income taxes. The self-employment tax is credited to social security taxes - so I'll get it all back in a few years.



I'm pretty sure the $80,000 exemption applies only to US citizens residing abroad. If you reside in the US, you also pay income tax on that first $80,000.


I believe it's actually everything over 300 USD/year or so. My tax advisor (here in Colorado) said I need to give my foreign clients my TIN or SSN so they can sent me a statement/W2/something at the end of the year if income from that one client is over 300 USD. Wether anyone actually does this or not doesn't matter, but they need to have the info to do this, should they want to comply with US law. Or something like that.


Direct link Reply with quote
 

Krasimira Kalcheva  Identity Verified
United States
Local time: 22:16
Member (2007)
English to Bulgarian
+ ...
Form 1099 Mar 21, 2009

I believe it's actually everything over 300 USD/year or so. My tax advisor (here in Colorado) said I need to give my foreign clients my TIN or SSN so they can sent me a statement/W2/something at the end of the year if income from that one client is over 300 USD. Wether anyone actually does this or not doesn't matter, but they need to have the info to do this, should they want to comply with US law. Or something like that.

[/quote]

This form is called 1099 and currently it is required only if you have provided services for over $600.00 for the entire year. See http://www.irs.gov/pub/irs-pdf/i1099msc.pdf


Direct link Reply with quote
 
Anya Lester
United States
Local time: 23:16
English to Russian
+ ...
Services are actually taxed, if you provide services by fixing tangible goods. Dec 10, 2009

xxxsarahl wrote:

there is no sales tax on "intangible goods" in the US, which includes services.


Direct link Reply with quote
 

Sheila Wilson  Identity Verified
Spain
Local time: 04:16
Member (2007)
English
+ ...
Where are you, Anna? Dec 10, 2009

I'm a little confused here as your profile says you are in France, probably in Montpellier, just a few km from where I'm writing this.

Still, you know where you are VAT-wise now, even if you don't know physically!


Direct link Reply with quote
 

Woodstock  Identity Verified
Germany
Local time: 05:16
German to English
+ ...
As an American living in the EU and Dec 10, 2009

working for clients in EU countries - you DO need a VAT number. If you work only with French clients, you may not - you'd have to check with the authorities there. At least from your avatar and what you stated you reside in France and will have to pay taxes there.

Somehow with so many people answering and talking about expats and US taxes, I hope you did get that core message: You do need a VAT No. if you work with EU-based clients.

Example: I'm an American living in Germany. Since my clients are almost all in Germany, I don't need the VAT No. for them because I charge them the VAT, but I do need it if I have clients in Austria, Denmark, etc., so they don't have to pay me the German 19% MwSt/VAT. Otherwise you are liable for the missing taxes and that could come back to bite you some day.

[Edited at 2009-12-10 18:05 GMT]

[Edited at 2009-12-10 18:05 GMT]


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 »

Do Americans need a VAT number?

Advanced search







PDF Translation - the Easy Way
TransPDF converts your PDFs to XLIFF ready for professional translation.

TransPDF converts your PDFs to XLIFF ready for professional translation. It also puts your translations back into the PDF to make new PDFs. Quicker and more accurate than hand-editing PDF. Includes free use of Infix PDF Editor with your translated PDFs.

More info »
LSP.expert
You’re a freelance translator? LSP.expert helps you manage your daily translation jobs. It’s easy, fast and secure.

How about you start tracking translation jobs and sending invoices in minutes? You can also manage your clients and generate reports about your business activities. So you always keep a clear view on your planning, AND you get a free 30 day trial period!

More info »



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