Should I pay VAT?
Thread poster: Raoul1978

Raoul1978  Identity Verified
Italy
Local time: 07:38
Member (2007)
English to French
+ ...
Dec 14, 2007

Dear colleguaes,

Few days ago a posted a project on proz site, because I was looking for someone for a translation work. In my posted project I specify the rate that I would pay for it. At the quote deadline, I assigned the job to an agency that concurred to the job offer. This agency is based in the UE (Italy, like me), but now I received from the latter the invoice with the rate that I had mentioned, more the 20% VAT!
It ìs that normally, that I must pay this?
So when an outsourcer publish a job with the rate that he intend to pay (like I did), to that rate, the freelancer or agency that make the job, should he always add the VAT?

Please answer me ASAP.

Thanks in advance.

Sergio.


Direct link Reply with quote
 

Amy Williams  Identity Verified
United Kingdom
Local time: 06:38
Italian to English
+ ...
one question Dec 14, 2007

Do you have a partita IVA/are you VAT-registered?

The reason I ask is because if you are VAT-registered paying VAT to the (VAT-registered) agency should make no difference (as far as I know - I don't know the Italian system very well) because you can offset it.

On the other hand, if you're not VAT-registered you will have to pay the full amount and you won't be able to offset it. Seeing as the threshold for VAT registration in Italy is rather low, I would imagine that many bidders - sorry, quoters - assume that VAT is to be added onto the amount quoted. Best to confirm it beforehand!

Cheers,
Amy

[Edited at 2007-12-14 11:05]


Direct link Reply with quote
 

Raoul1978  Identity Verified
Italy
Local time: 07:38
Member (2007)
English to French
+ ...
TOPIC STARTER
Yes I'm VAT registered Dec 14, 2007

Yes I have a "partita IVA"

Direct link Reply with quote
 

Marie-Hélène Hayles  Identity Verified
Local time: 07:38
Italian to English
+ ...
Yes, you do have to pay it Dec 14, 2007

It's standard practice in Italy to quote translation fees net of VAT, and as you are also based in Italy I'm sure that it didn't cross the agency's mind that the fee you offered included VAT. (I've started specifying my fees as "+ VAT" only recently, following a discussion in here - the one linked to by Marc - over a dispute on these lines. Before that I'd just assumed that it was implicit).

However, as you are VAT-registered, it makes no difference to you anyway, as you can claim the VAT back as part of your business expenses.

[Edited at 2007-12-14 11:10]


Direct link Reply with quote
 
xxxMarc P  Identity Verified
Local time: 07:38
German to English
+ ...
Should I pay VAT? Dec 14, 2007

See discussion here:

www.proz.com/topic/90520

Marc


Direct link Reply with quote
 

Amy Williams  Identity Verified
United Kingdom
Local time: 06:38
Italian to English
+ ...
normal Dec 14, 2007

Thanks for your reply, Sergio.

In that case paying VAT to the agency shouldn't make any difference to you as you will be able to offset it. If you specified a fee inclusive of VAT to the agency in the first place that would be a different matter altogether.

Have a good weekend,
Amy

[Edited at 2007-12-14 11:14]


Direct link Reply with quote
 

Parrot  Identity Verified
Spain
Local time: 07:38
Member (2002)
Spanish to English
+ ...
Maybe your real question is Dec 14, 2007

Marie-Hélène Hayles wrote:

However, as you are VAT-registered, it makes no difference to you anyway, as you can claim the VAT back as part of your business expenses.

[Edited at 2007-12-14 11:10]


... what do with the VAT once you've paid? (If you have an accountant they tend to gloss over these details).

You have to pay the VAT you've collected anyway. Now, before you do so, you should deduct the VAT from your own business purchases, making the total VAT you pay less by as much as you've paid other suppliers/service providers.

That's what Amy was referring to.


Direct link Reply with quote
 


To report site rules violations or get help, contact a site moderator:


You can also contact site staff by submitting a support request »

Should I pay VAT?

Advanced search







SDL Trados Studio 2017 Freelance
The leading translation software used by over 250,000 translators.

SDL Trados Studio 2017 helps translators increase translation productivity whilst ensuring quality. Combining translation memory, terminology management and machine translation in one simple and easy-to-use environment.

More info »
Protemos translation business management system
Create your account in minutes, and start working! 3-month trial for agencies, and free for freelancers!

The system lets you keep client/vendor database, with contacts and rates, manage projects and assign jobs to vendors, issue invoices, track payments, store and manage project files, generate business reports on turnover profit per client/manager etc.

More info »



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