Portuguese freelancer charging VAT to client in US Thread poster: Kathi Stock
| Kathi Stock United States Local time: 22:03 Member (2002) English to German + ...
Hi all, Maybe you can help me out here. I have a freelance translator in Portugal that provides translations for me. His invoice includes VAT, even though that I reside outside of the EU. Is that correct? All other invoices I get from translators residing within the EU do not show VAT. Any comments are appreciated. Thanks, Kathi | | | John Jory Germany Local time: 05:03 English to German + ... | Niina Lahokoski Finland Local time: 06:03 Member (2008) English to Finnish + ... VAT only in EU | Oct 3, 2006 |
Hi, VAT is only applicable in EU countries, so the translator should not include VAT in his/her invoice. Just ask the translator to send you a new invoice without VAT.
[Edited at 2006-10-03 11:15] | | | Answer of a Portuguese freelancer | Oct 3, 2006 |
Hi Kathi, We can only charge VAT inside Portugal, to Portuguese customers. Even to EU countries we don't have to charge it. I hope it helps. Best, Ivana | |
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Kathi Stock United States Local time: 22:03 Member (2002) English to German + ... TOPIC STARTER Any web site references? | Oct 3, 2006 |
Hi Ivana, Are there any web links (even if they are in Portuguese) that support your opinion? Thanks, Kathi Ivana de Sousa Santos wrote: Hi Kathi, We can only charge VAT inside Portugal, to Portuguese customers. Even to EU countries we don't have to charge it. I hope it helps. Best, Ivana | | | I'll try to find them out for you | Oct 3, 2006 |
:0) | | | Carla Araújo Portugal Local time: 04:03 English to Portuguese + ... | Kathi Stock United States Local time: 22:03 Member (2002) English to German + ... TOPIC STARTER Thanks, Carla! | Oct 3, 2006 |
That link is very helpful. Thanks a lot! Kathi | |
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I'm back - Freelance + translation related article | Oct 3, 2006 |
http://www.dgci.min-financas.pt/siteinternet/_sgt/guiaivatex.htm#trad Serviços de tradução R: Em sede de IVA, as prestações de serviços seguem, regra geral, a tributação no país onde o prestador tem a sua sede, estabelecimento estável ou, na sua falta, o domicílio a partir do qual os serviços sejam prestados, conforme dispõe o n.º 4 do art.º 6º do CIVA. Todavia, aquela regra comporta várias excepções descritas nos n.º 5 a 21 do mesmo art.º 6º, tendo cada uma delas regras próprias de localização. Os serviços de tradução, quer efectuados por pessoas colectivas, quer por trabalhadores independentes, configuram o tipo de operações previstas no art.º 6º, n.º 8, alínea c) do CIVA. Por este facto, as prestações de serviços de tradução efectuadas a um adquirente domiciliado num outro Estado membro, que prove que nesse país têm a qualidade de sujeito passivo, ou a um adquirente domiciliado num país não pertencente à Comunidade Europeia, não se encontram sujeitas a IVA em Portugal, nos termos, respectivamente, das alíneas a) ou b) do n.º 9 do art.º 6º do CIVA, conjugadas com a alínea c) do n.º 8 do mesmo artigo. O número de identificação fornecido pelo adquirente dos serviços, sujeito passivo na Comunidade Europeia, poderá ser confirmado através do site da DGCI: http://www.dgci.min-financas.pt. Na factura ou documento equivalente emitido deverá constar o motivo da não liquidação do imposto, conforme o exigido no art.º 35º, n.º 5, alínea e) do CIVA, neste caso apondo a menção “Artigo 6º, nº 9 alínea a) ou b) do CIVA. Relativamente ao preenchimento da declaração periódica, os valores referentes às operações realizadas / localizadas fora do território nacional deverão ser indicados no quadro 06 – campo 8 (operações previstas na alínea b) do n.º 1 do art. 20º do CIVA). This is what the article states. I know it's in Portuguese, but in this particular line it states that VAT is not charged in any Member State or other State not belonging to the EU according to a) or b) of paragraph 9 of Article 6 of the VAT Code: Por este facto, as prestações de serviços de tradução efectuadas a um adquirente domiciliado num outro Estado membro, que prove que nesse país têm a qualidade de sujeito passivo, ou a um adquirente domiciliado num país não pertencente à Comunidade Europeia, não se encontram sujeitas a IVA em Portugal, nos termos, respectivamente, das alíneas a) ou b) do n.º 9 do art.º 6º do CIVA, conjugadas com a alínea c) do n.º 8 do mesmo artigo. "Serviços de Tradução" means "Translation Services" and this text is taken out from the IRS website. I hope it REALLY helps you out now. Don't hesitate to contact me if you need any more information. Best, Ivana | | | Kathi Stock United States Local time: 22:03 Member (2002) English to German + ... TOPIC STARTER Thanks, Ivana | Oct 3, 2006 |
That is VERY helpful. Thanks so much. Kathi | | | RobinB United States Local time: 22:03 German to English | Adrian MM. (X) Local time: 05:03 French to English + ... 'Reverse charge' not applicable | Oct 3, 2006 |
The translator has got it the wrong way round. If you were supplying goods or services out of the US to him in the EU, he would have to charge himself output VAT so as not to give non-EU suppliers 'undue preference'. EU businesses are often required to charge themselves VAT under the *reverse charge* mechanism where services are received from another member state or from outside of the EU en.wikipedia.org/wiki/Value_added_tax | |
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clyx Spain Spanish to German + ...
But how do we justify the "export" of the service? When you sell physically something you have export documents. In Spain you have to present them to the tax office together with the invoice. These docs justify the export. I've checked eu-official web on e-services but it isn't clear. Does anybody has info on this matter? Thx | | | Vito Smolej Germany Local time: 05:03 Member (2004) English to Slovenian + ... SITE LOCALIZER
Maybe you can help me out here. I have a freelance translator in Portugal that provides translations for me... I am 16% cheaper up front - no VAT, cross my heart. Can handle German, Slovenian, also Flemish, French, Finnish, Latvian, Italian... Absolutely the lowest EU VAT rate on the market! Show me a lower offer and I'll beat it on the spot! Rain checks available on request. Vitomir (Vito) no-VAT Smolej | | | To report site rules violations or get help, contact a site moderator: You can also contact site staff by submitting a support request » Portuguese freelancer charging VAT to client in US CafeTran Espresso | You've never met a CAT tool this clever!
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