| Pages in topic: [1 2] > | Freelancer invoicing from UK to Spain, post Brexit, not VAT registered Thread poster: Comunican
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Comunican
United Kingdom
Local time: 12:00
Spanish to English
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I live in the UK and until now have been invoicing my Spanish agencies through a UK company.
My invoices state the company's registered Companies House number and, because the company is not VAT registered, I explain this on the invoices.
However, I now want to stop invoicing through the company and invoice as an individual freelancer and I'm especially interested in the rules post-Brexit.
As others have noted, the UK government website is of almost no he... See more I live in the UK and until now have been invoicing my Spanish agencies through a UK company.
My invoices state the company's registered Companies House number and, because the company is not VAT registered, I explain this on the invoices.
However, I now want to stop invoicing through the company and invoice as an individual freelancer and I'm especially interested in the rules post-Brexit.
As others have noted, the UK government website is of almost no help. I don't especially want to raise the issue with my agencies as it has tended to become complicated when their accountants get involved (!). And other forum questions on this issue that I've found focus mostly on VAT issues.
So I'm asking if anyone knows what information I actually need to provide when invoicing as a freelance UK taxpayer who is under the VAT threshold...?
I will need to explain/justify this in order to satisfy my agencies' accountants, so any references or guidance on such explanation would be appreciated.
Many thanks. ▲ Collapse
| | | | Tom in London
United Kingdom
Local time: 12:00
Member (2008)
Italian to English
| THIS IS ALL YOU NEED | Aug 26, 2021 |
Sample invoice (to Italy but the same applies to all other EU Member States). I regularly issue invoices exactly like this.
[Edited at 2021-08-26 11:34 GMT]
| | | | Hayley Wakenshaw 
United Kingdom
Local time: 12:00
Member (2018)
Dutch to English
| Nothing special needed... | Aug 26, 2021 |
... at least I hope so. But I've been submitting invoices this way to my Dutch clients for years. After Brexit, I've heard nothing back from the tax office or my accountant about needing to change it. I am a sole-trader, and I don't pay VAT.
[Edited at 2021-08-26 11:58 GMT]
| | | | Comunican
United Kingdom
Local time: 12:00
Spanish to English
+ ...
TOPIC STARTER | Great, thank you! | Aug 26, 2021 |
Tom in London wrote: Sample invoice (to Italy but the same applies to all other EU Member States). I regularly issue invoices exactly like this. [Edited at 2021-08-26 11:34 GMT]
That's great, thanks very much Tom in London
[Edited at 2021-08-26 12:08 GMT]
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Comunican
United Kingdom
Local time: 12:00
Spanish to English
+ ...
TOPIC STARTER | Thank you very much | Aug 26, 2021 |
Hayley Wakenshaw wrote: ... at least I hope so. But I've been submitting invoices this way to my Dutch clients for years. After Brexit, I've heard nothing back from the tax office or my accountant about needing to change it. I am a sole-trader, and I don't pay VAT. [Edited at 2021-08-26 11:58 GMT]
Thank you very much Hayley - much appreciated.
| | | | RobinB
United States
Local time: 06:00
German to English
| Tom's solution should work | Aug 26, 2021 |
Tom's solution should work fine, as long as the client is registered for VAT in the EU member state.
The situation gets (much) more complicated if the client is not registered for VAT. This affects mainly retail clients, but also any public agencies or authorities that are not themselves registered for VAT, but to which VAT must be charged by service providers.
Robin
| | | | Tom in London
United Kingdom
Local time: 12:00
Member (2008)
Italian to English
| Not relevant | Aug 27, 2021 |
RobinB wrote:
Tom's solution should work fine, as long as the client is registered for VAT in the EU member state.
The situation gets (much) more complicated if the client is not registered for VAT. This affects mainly retail clients, but also any public agencies or authorities that are not themselves registered for VAT, but to which VAT must be charged by service providers.
Robin
The client's tax and VAT arrangements in their country are not relevant and have no effect on the translator. The translator is only answerable to the tax authorities in her/his own country (i.e. the country in which the service was provided and where the invoice was issued) and must follow the tax rules that apply in that country - not those of any other jurisdiction.
[Edited at 2021-08-27 07:50 GMT]
| | | | Comunican
United Kingdom
Local time: 12:00
Spanish to English
+ ...
TOPIC STARTER | The client's tax and VAT arrangements are not necessarily irrelevant | Aug 27, 2021 |
Tom in London wrote:
The client's tax and VAT arrangements in their country are not relevant and have no effect on the translator. The translator is only answerable to the tax authorities in her/his own country (i.e. the country in which the service was provided and where the invoice was issued) and must follow the tax rules that apply in that country - not those of any other jurisdiction.
[Edited at 2021-08-27 07:50 GMT]
This has not been my experience, unfortunately. I've had problems in the past with invoicing Spanish agencies because IVA (Spanish VAT) applies in all cases. And, therefore, they have wanted the reassurance that VAT doesn't apply to me. The company name and number seemed to satisfy this. Hence my concern about now wanting to start to invoice as an individual - with the added implication of it now being after Brexit.
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Tom in London
United Kingdom
Local time: 12:00
Member (2008)
Italian to English
Comunican wrote: Tom in London wrote:
The client's tax and VAT arrangements in their country are not relevant and have no effect on the translator. The translator is only answerable to the tax authorities in her/his own country (i.e. the country in which the service was provided and where the invoice was issued) and must follow the tax rules that apply in that country - not those of any other jurisdiction.
[Edited at 2021-08-27 07:50 GMT] This has not been my experience, unfortunately. I've had problems in the past with invoicing Spanish agencies because IVA (Spanish VAT) applies in all cases. And, therefore, they have wanted the reassurance that VAT doesn't apply to me. The company name and number seemed to satisfy this. Hence my concern about now wanting to start to invoice as an individual - with the added implication of it now being after Brexit.
Yes - Spanish accountants are notorious for not understanding that UK tax rules have got nothing to do with Spain, and vice-versa.
Personally though, I've worked for a number of Spanish clients and this has never come up.
| | | | Comunican
United Kingdom
Local time: 12:00
Spanish to English
+ ...
TOPIC STARTER | Glad to hear it's not just me who thinks this! | Aug 27, 2021 |
Tom in London wrote:
Spanish accountants are notorious for not understanding that UK tax rules have got nothing to do with Spain, and vice-versa.
| | | | Comunican
United Kingdom
Local time: 12:00
Spanish to English
+ ...
TOPIC STARTER | "Tax ID number required" | Aug 30, 2021 |
As predicted, Spanish agencies are harder to satisfy than others. And, having lived in Spain, it is my experience that if they can possibly add a layer of unnecessary or intrusive bureaucracy, they usually will!
So, now one of my agencies there has said that I would need to state my tax ID number on my invoice.
I'm not sure what that actually means. Though I did read in another post on a related topic that someone used their UTR (unique tax reference) number. But surely... See more As predicted, Spanish agencies are harder to satisfy than others. And, having lived in Spain, it is my experience that if they can possibly add a layer of unnecessary or intrusive bureaucracy, they usually will!
So, now one of my agencies there has said that I would need to state my tax ID number on my invoice.
I'm not sure what that actually means. Though I did read in another post on a related topic that someone used their UTR (unique tax reference) number. But surely that is confidential to me??
Maybe I should use my NI (national insurance) number?
Any thoughts please? ▲ Collapse
| | | | Tom in London
United Kingdom
Local time: 12:00
Member (2008)
Italian to English
Just put your UTR below your name, on the invoice.
I've found that this keeps people happy.
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Comunican
United Kingdom
Local time: 12:00
Spanish to English
+ ...
TOPIC STARTER | OK, thanks, but isn't my UTR confidential? | Aug 30, 2021 |
Tom in London wrote:
Just put your UTR below your name, on the invoice.
I've found that this keeps people happy.
OK, thanks Tom, but isn't my UTR confidential?
| | | | Comunican
United Kingdom
Local time: 12:00
Spanish to English
+ ...
TOPIC STARTER | Tom in London
United Kingdom
Local time: 12:00
Member (2008)
Italian to English
Comunican wrote: Tom in London wrote:
Just put your UTR below your name, on the invoice.
I've found that this keeps people happy. OK, thanks Tom, but isn't my UTR confidential?
I don't think so- but your National Insurance Number certainly is !
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