Invoicing US from Spain
Thread poster: Jesús Calzado Díaz

Jesús Calzado Díaz
Local time: 17:26
English to Spanish
+ ...
Jan 15, 2003

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Luigi Carletti
 

Ralf Lemster  Identity Verified
Germany
Local time: 17:26
English to German
+ ...
Consult a tax advisor for a precise answer Jan 15, 2003



On 2003-01-15 10:22, JCD wrote:
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Not that I'm aware of (and I have invoiced US clients from Germany).

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That one is simple, even though I have no idea about Spanish taxation - sounds like tax evasion to me...


 

OlafK
United Kingdom
Local time: 16:26
English to German
+ ...
It is definitely tax evasion... Jan 19, 2003

...and not a very intelligent idea to discuss this in a forum on the Internet.

[ This Message was edited by:on2003-01-20 01:50]


Jorge Payan
Tom in London
 

Adrian Woods (X)
Spanish to English
Tax Status - Billing U.S. Jan 29, 2003

On 2003-01-15 10:22, JCD wrote:
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No VAT, no withholding if you claim (and are eligible for) \"Non Resident Alien\" status.



Look up \"Non Resident Alien\" status on the US IRS site and that will give you an idea of where you stand with the US Inland Revenue.



The Spanish \"Hacienda\" website will tell you everything you to know about your relations with it: i.e. if it sees unexplaine
... See more
On 2003-01-15 10:22, JCD wrote:
[Content removed by staff]



No VAT, no withholding if you claim (and are eligible for) \"Non Resident Alien\" status.



Look up \"Non Resident Alien\" status on the US IRS site and that will give you an idea of where you stand with the US Inland Revenue.



The Spanish \"Hacienda\" website will tell you everything you to know about your relations with it: i.e. if it sees unexplained monies flowing into your bank account from abroad it might be curious.



Its definition of tax residency status is that if you perform the work from your \"establecimiento\" in Spain it must be declared.



Adrian Woods
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Pamela Peterson  Identity Verified
Local time: 11:26
Spanish to English
+ ...
Follow Up Question on VAT EU to USA Jan 29, 2020

Hello,
We are a USA based translation agency, and in 20 years working with translators all over the world, I've never had one ask me for our company tax ID number.

This is what she told us:

Due to VAT agreements between the US and the EU, I do not pay VAT, however, my accountant has to report all US companies I deal with to the tax authority, along with their tax numbers, to check certain tax-related matters. I am attaching a sample invoice to demonstrate what co
... See more
Hello,
We are a USA based translation agency, and in 20 years working with translators all over the world, I've never had one ask me for our company tax ID number.

This is what she told us:

Due to VAT agreements between the US and the EU, I do not pay VAT, however, my accountant has to report all US companies I deal with to the tax authority, along with their tax numbers, to check certain tax-related matters. I am attaching a sample invoice to demonstrate what company data I need to state on my invoices.

I don't want to give her our company tax ID number, and don't believe we have to, but I am now curious and wonder if this is a standard practice now for translators working in the EU with USA clients?

Any info would be appreciated!
Pamela
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Eoghan McMonagle
 

Eoghan McMonagle  Identity Verified
Spain
Local time: 17:26
Member (2011)
Spanish to English
+ ...
Tax ID definitely required in EU countries Apr 30, 2020

I am a lawyer and translator-interpreter in Spain and I would refuse (and have refused) to work with a US company that wouldn't hand over their Tax ID.
In Spain, we are required to hand over a list of all non-EU third parties that we have done business with at the end of every fiscal year, so if I didn't have this, I wouldn't be able to fulfill the requirements of the Spanish Tax authorities. This would mean that I would be required to pay VAT at 21% on the invoiced amount and, as no Tax I
... See more
I am a lawyer and translator-interpreter in Spain and I would refuse (and have refused) to work with a US company that wouldn't hand over their Tax ID.
In Spain, we are required to hand over a list of all non-EU third parties that we have done business with at the end of every fiscal year, so if I didn't have this, I wouldn't be able to fulfill the requirements of the Spanish Tax authorities. This would mean that I would be required to pay VAT at 21% on the invoiced amount and, as no Tax ID for the client has been provided, I wouldn't then be able to claim this back.
This is the same for all EU countries, the VAT rate of course depends on the EU country you have your tax address registered of course.

[Edited at 2020-04-30 12:22 GMT]
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Tom in London
United Kingdom
Local time: 16:26
Member (2008)
Italian to English
Not Apr 30, 2020

JCD wrote:

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they will find you and punish you.


 

Kevin Fulton  Identity Verified
United States
Local time: 11:26
German to English
Why not give EIN number? Apr 30, 2020

Pamela Peterson wrote:

Hello,
We are a USA based translation agency, and in 20 years working with translators all over the world, I've never had one ask me for our company tax ID number.

I don't want to give her our company tax ID number, and don't believe we have to, but I am now curious and wonder if this is a standard practice now for translators working in the EU with USA clients?

Any info would be appreciated!
Pamela


Your company puts it EIN number on 1099 MISC forms to its US-based freelancers. Why can't you provide this to non-US freelancers if they ask for a tax number? Basically the freelancer potentially needs a number to satisfy EU tax authorities needing a number to fill in a box in their system. It's a procedure analogous to asking foreign-based freelancers to file a W8 with your agency. Ultimately it's meaningless, unless you are audited, which is an uncommon event.


John Fossey
 

Jo Macdonald  Identity Verified
Spain
Member (2005)
Italian to English
+ ...
Exported service May 1, 2020

If you are registered for tax purposes in Spain and your client is a business in the US (B2B transaction) you're exporting your service out of the EEC and the invoice is just the amount of the service without any VAT or withholding tax. Basically if the job costs €100 that's what you put in the invoice nothing else, Invoice amount €100, to pay €100, however you want to put it. You can add "No sujeto IVA" if you want.

 


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