Invoicing a UK charity from Spain - missing tax ID number
Thread poster: Blind Clam

Blind Clam  Identity Verified
Spain
Local time: 00:47
Spanish to English
+ ...
Mar 10, 2017

Hi,

I am a self-employed translator based in Spain (I'm autónoma here). I file my taxes and charge VAT (IVA) here. Over the past few months I have started translating for a UK charity. I asked for their unique tax identification number because my accountant here in Spain said that without one (called a CIF here) she can't declare the work I have done for them. However, they don't have one because they don't pay taxes in the UK. They only have a company registration number and a charity number relevant to the UK. They said they have declared my invoices so far, but I can't declare the work myself. Does anyone know anything about declaring work done for NGOs and charities? My accountant doesn't understand how they operate without a tax ID number.

Any advice appreciated.

Many thanks.

S.


 

Nikki Scott-Despaigne  Identity Verified
Local time: 00:47
French to English
Cross-border VAT numbers, the VIES system Mar 10, 2017

Many structures don't actually realize that they do in fact have a European VAT registration number. I have what is known as the "autoentrepreneur" status here in France and I do not and cannot earn enough to charge VAT. However, a while back, I needed to supply my EU VAT reg n°. I contacted the tax authorities here and obtained the number. It is based on my busienss reg n°.

Your accountant ought to know however, that with the business/charity registration number you can check the European online official source and obtain the EU VAT reg number anyway.

http://europa.eu/youreurope/business/vat-customs/cross-border/index_en.htm


 

Monika Jakacka Márquez  Identity Verified
Spain
Local time: 00:47
Member (2006)
Polish to Spanish
+ ...

Moderator of this forum
if no EU-VAT number, than charge the VAT Mar 10, 2017

Hello,

First of all, chech in the VIES if their local VAT no. doesn't appear (as Nikki have suggested). If not, you'll have to charge them VATicon_frown.gif

I always follow these simple instructions:

Si el cliente es empresa/autónomo español (península + Baleares):
+ 21% de IVA
- 7% ó 15 % de IRPF

Si el cliente es un particular español (península + Baleares):
+ 21% de IVA
- 0% de IRPF

Si el cliente es empresa/autónomo español (Canarias):
+ 0% IVA
- 7% ó 15 % de IRPF

Si el cliente es un particular español (Canarias):
+ 0% IVA
- 0% de IRPF

Si el cliente es extranjero de UE:
Debe darte el VAT no. (un número NIF/CIF internacional). Puedes comprobar la validez de este número aquí:
http://ec.europa.eu/taxation_customs/vies/vieshome.do

Si lo hace:
+ 0% IVA
- 0 % de IRPF
Si no lo hace:
+ 21% IVA
- 0% de IRPF

Si el cliente es extranjero pero no es de UE:
+ 0% IVA
- 0 % de IRPF


El porcentaje del IRPF depende de lo siguiente:
- 7%: aplicable durante el año en el que te das de alta como autónomo por primera vez en tu vida, más 2 años siguientes;
- 15%: aplicable a partir del cumplimiento del período anteriormente descrito.

También es posible aplicar el 15% de la retención del IRPF desde el principio del ejercicio de la actividad, pero lo importante es ser consecuente y no variar este porcentaje una vez emitida al menos una factura (es decir, a lo largo de un ejercicio no se puede emitir algunas facturas con la retención del 7% y otras con la del 15%).


If they don't give you a valid EU-VAT no., you'll have to charge them 21% VAT and declare it in Spain.

Regards,
Monika


 

Nikki Scott-Despaigne  Identity Verified
Local time: 00:47
French to English
Yes but Mar 10, 2017

With the proviso that you will only be able to charge VAT if you would normally have to charge VAT in Spain. (In other words, if a particular régime (like the "autoentrepreneur" in France) means you do not charge VAT, and/or your income is not sufficient to have to charge VAT, then you cannot of course charge it anyway).

 

Monika Jakacka Márquez  Identity Verified
Spain
Local time: 00:47
Member (2006)
Polish to Spanish
+ ...

Moderator of this forum
+/- Mar 10, 2017

Nikki Scott-Despaigne wrote:

With the proviso that you will only be able to charge VAT if you would normally have to charge VAT in Spain. (In other words, if a particular régime (like the "autoentrepreneur" in France) means you do not charge VAT, and/or your income is not sufficient to have to charge VAT, then you cannot of course charge it anyway).


Nikki, I guess it was already said by the topic starter (sorry for not using the name, but I don't know it):

Blind Clam wrote:

Hi,

I am a self-employed translator based in Spain (I'm autónoma here). I file my taxes and charge VAT (IVA) here...


So I guess it's clear that she is a VAT payer in Spain and she should charge the British NGO VAT if hey don't indicate a valid EU-VAT no.

In Spain all autónomos have the obligation of applying VAT unles the service provided is not charged with this tax (fot example, teaching is not charged with VAT, but selling books needs to be charged with VAT). In translation things get a little bit more complicated, as some kinds of translations are charged with VAT tax and other are not. For example: literary, scientific and other translations which allow the translator to keep the copyright of the translated text are not charged with VAT tax.

Have a nice day!
Monika


 

Nikki Scott-Despaigne  Identity Verified
Local time: 00:47
French to English
@Monika Mar 10, 2017

Thank you. I'd missed that essential piece of info!

A link to the VIES online tool : http://ec.europa.eu/taxation_customs/vies/?locale=es

[Edited at 2017-03-10 18:44 GMT]


 

Blind Clam  Identity Verified
Spain
Local time: 00:47
Spanish to English
+ ...
TOPIC STARTER
Thank you and sorry for the late reply Mar 30, 2017

So sorry not to have thanked you all sooner - my settings seem to have changed and I didn't get any notifications of replies so thought I hadn't had any! Only just logged back in to Proz and saw these.

I just tried to track down their tax identification number from their company number through the VIES system (thank you for that link), but it came back with "invalid VAT number". The company number they have given me is only 7 digits long.

So it looks like the only option is to charge VAT here in Spain. I'm not sure how they will react as they are a charity and don't usually pay VAT, but I have no other choice, it seems.

Thank you again. Any further thoughts appreciated.

Best wishes,

Susannah


 

TechStyle  Identity Verified
United Kingdom
Local time: 23:47
Charity VAT Mar 30, 2017

Charities DO normally pay VAT, except on some special cases listed here (and I don't see anything that might cover translation there) - https://www.gov.uk/vat-charities/what-qualifies-for-relief - the next page gives the details on how they can avoid paying VAT for those special cases, which involves getting a letter from HMRC or the Charity Commission confirming this status.

Have you asked them about this? If they aren't VAT registered, they will be paying VAT normally (and not reclaiming it, either) except for the special cases in that link, so being charged shouldn't be any surprise at all.


 

Blind Clam  Identity Verified
Spain
Local time: 00:47
Spanish to English
+ ...
TOPIC STARTER
Charities / VAT Apr 3, 2017

James Sutherland wrote:

Charities DO normally pay VAT, except on some special cases listed here (and I don't see anything that might cover translation there) - https://www.gov.uk/vat-charities/what-qualifies-for-relief - the next page gives the details on how they can avoid paying VAT for those special cases, which involves getting a letter from HMRC or the Charity Commission confirming this status.

Have you asked them about this? If they aren't VAT registered, they will be paying VAT normally (and not reclaiming it, either) except for the special cases in that link, so being charged shouldn't be any surprise at all.


Hi again,

They said this when I asked for their tax ID code:

We don’t have a tax identification code or VAT number as we are not VAT registered.

I will write to them them about charging them VAT from Spain.

Thanks again,

Susannah


 


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Invoicing a UK charity from Spain - missing tax ID number

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