| A témához tartozó oldalak: < [1 2] | VAT exemption codes Téma indítója: Victoria Porter-Burns
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| Your threshold may differ | Jan 20, 2008 |
The UK is very sweet in having such a high income threshold before you are required to mess with VAT.
I work here in Greece and was originally self-employed for my scientific activites which were under VAT laws, regardless of the tiny amount I was earning [in fact below the income tax threshold ]. Now my income is still below the income taxable level but I am required to charge every client VAT. And they hate it. Moreover, it... See more The UK is very sweet in having such a high income threshold before you are required to mess with VAT.
I work here in Greece and was originally self-employed for my scientific activites which were under VAT laws, regardless of the tiny amount I was earning [in fact below the income tax threshold]. Now my income is still below the income taxable level but I am required to charge every client VAT. And they hate it. Moreover, it makes it very difficult to charge a good rate for editorial or translation work. My two best mates back in the UK own their own driving school and do not pay VAT, nor do they pay the ridiculous amount of money I pay for the Greek self-employed NI contributions. Our VAT is currently at 19%, but there has been talk of it rising - heaven help us if it does.
The only time I have heard of exemption codes is in association with EU legislation on particular matters - for example, much work carried out funded by EU programmes is exempt from VAT. Here, I worked in a research programme funded by the EU and on our receipts we had to state that they were exempt from VAT under such and such law (Greek law incorporating the EU Directive). Small businesses here are supposedly exempt from VAT (small in the sense of profit?) but I have not yet found out what determines a small business. I agree wholeheartedly that if you can avoid reaching the threshold do so. But where we are in continental europe, it is practically impossible.
For the record juvera, the Greek VAT year does in fact run as a calendar year.
I really must talk with our accountant as to what can be recouped under expenses against VAT payments - when I first set my PC gear up, I offset my VAT payments with that ... but I can't buy new gear every day! ▲ Collapse
| | | | Victoria Porter-Burns 
Egyesült Királyság
Local time: 19:12
Tag (2007 óta)
francia - angol
+ ...
TÉMAINDÍTÓ
Thanks for all the info. It definitely sounds like that's the kind of code my client was after.
Kind regards,
Vicky
| | | | juvera
Local time: 19:12
angol - magyar
+ ...
overVATed wrote:
The UK is very sweet in having such a high income threshold before you are required to mess with VAT.....
For the record juvera, the Greek VAT year does in fact run as a calendar year.
Yes, thanks. I am sure; there are many other European countries, where it coincides with the calendar year.
williamson wrote:
It is based on sales made during a calendar year from 1 January to 31 December.
I should have made it clear: I thought it was referring to the UK, as both williamson and Vicky are in the UK, and that's why I commented. I just want to clarify it.
| | | | | VAT is not an additional tax burden | Feb 8, 2008 |
Hi Vicky,
VAT is not an additional tax burden - you don't have to worry about it.
As was mentioned already earlier you apply 0% VAT if you provide translation services electronically to a company in other EU member state or outside EU (in that case you only need to indicate your VAT number on the invoice) but if you provide translation services within your country of residence you add 18% (or whatever is the value) VAT and the company you are collaborating with may deduct thi... See more Hi Vicky,
VAT is not an additional tax burden - you don't have to worry about it.
As was mentioned already earlier you apply 0% VAT if you provide translation services electronically to a company in other EU member state or outside EU (in that case you only need to indicate your VAT number on the invoice) but if you provide translation services within your country of residence you add 18% (or whatever is the value) VAT and the company you are collaborating with may deduct this amount from its payable VAT (it is so called VAT pretax) and thus lower its payable VAT amount. So, it is a benefit for companies that you are a VAT payer.
Although I explained the mechanism that works in my country I think that it might be quite similar in other EU countries. ▲ Collapse
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I think there is a confusion in terms. The paragraphs you quote for threshold and the rest refer to the conditions when the registration as VAT payer is mandatory.
Now, for international business within the EU you need a so called VAT Identification Number. Without it you cannot issue invoices for international trade (within the EU). You have to apply for it at your governmental tax agency and they will explain you the steps to be taken. As for the invoice there are 2 choices:
1) you... See more I think there is a confusion in terms. The paragraphs you quote for threshold and the rest refer to the conditions when the registration as VAT payer is mandatory.
Now, for international business within the EU you need a so called VAT Identification Number. Without it you cannot issue invoices for international trade (within the EU). You have to apply for it at your governmental tax agency and they will explain you the steps to be taken. As for the invoice there are 2 choices:
1) you can issue it without VAT with the mention "VAT free within the EC" and in this case the VAT will be paid in the country of destination according to local rates
2) you issue it with the your VAT with the mention "VAT paid at origin" and at destination they will balance the VAT account according again with local regulations.
The preferred way is 1) which cuts (a little) the red tape.
In no way can you export your services without this VAT Id.No. It has the structure country code + number e.g. GB12345678 or FR098765 etc. The number can be the same as your national tax registration number or not. You have to receive a certificate with the EU VAT no. and, according to case (threshold) you may have to make monthly or at least periodical reports as to the nature and volume of your exports or imports. ▲ Collapse
| | | | Victoria Porter-Burns
Egyesült Királyság
Local time: 19:12
Tag (2007 óta)
francia - angol
+ ...
TÉMAINDÍTÓ | To translexIQ | Feb 8, 2008 |
Hi, and thanks very much for the information. I have already, though, issued several invoices to countries such as Argentina and Germany and had them paid without mentioning any VAT code/rate/number or, infact, anything at all to do with VAT. This is why I couldn't understand why this one customer attached so much importance to it.
| | | | | Re: customers | Feb 8, 2008 |
The fact that you have dealt in a particular way with certain customers in the past without a murmur does not, in and of itself, constitute proof that the procedures you apply are correct
I have myself, for a not inconsiderable period of time a few years ago, wrongly charged VAT to various customers. They all paid it without a peep ! I, of course, was dutifully passing it on the tax authorities. It just depends who d... See more The fact that you have dealt in a particular way with certain customers in the past without a murmur does not, in and of itself, constitute proof that the procedures you apply are correct
I have myself, for a not inconsiderable period of time a few years ago, wrongly charged VAT to various customers. They all paid it without a peep ! I, of course, was dutifully passing it on the tax authorities. It just depends who deals with your invoice, what they know, and whether it meets their expectations, I guess. We are all fallible.
Please don't think me unduly pedantic, it's just your post gave me the impression as per my first para above, and I think it may be worth pointing out that customers sometimes don't actually know any more about it than we do.
Just as customers sometimes ask for info they don't actually need, it is equally possible that they omit to ask for stuff they should.
Similarly, two parties might be very happily and in complete good faith charging and paying VAT when they shouldn't be, or not charging or paying it when they should
Hope you can see what I mean ▲ Collapse
| | | | juvera
Local time: 19:12
angol - magyar
+ ...
| Confusion indeed | Feb 9, 2008 |
translexIQ wrote:
I think there is a confusion in terms. The paragraphs you quote for threshold and the rest refer to the conditions when the registration as VAT payer is mandatory.
Now, for international business within the EU you need a so called VAT Identification Number. Without it you cannot issue invoices for international trade (within the EU). You have to apply for it at your governmental tax agency and they will explain you the steps to be taken. As for the invoice there are 2 choices:
1) you can issue it without VAT with the mention "VAT free within the EC" and in this case the VAT will be paid in the country of destination according to local rates
2) you issue it with the your VAT with the mention "VAT paid at origin" and at destination they will balance the VAT account according again with local regulations.
The preferred way is 1) which cuts (a little) the red tape.
In no way can you export your services without this VAT Id.No. It has the structure country code + number e.g. GB12345678 or FR098765 etc. The number can be the same as your national tax registration number or not. You have to receive a certificate with the EU VAT no. and, according to case (threshold) you may have to make monthly or at least periodical reports as to the nature and volume of your exports or imports.
Please believe it, in the UK, if you don't register for VAT, - and most of the translators don't, because the threshold is high and under the threshold it is not compulsory, - you don't have a VAT ID number. It doesn't cause any problem, the invoice simply states VAT 00.00 (or similar).
The "tax registration number" - at least in the UK - is something else, not to be mixed up with a VAT ID.
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