Can anybody help please.
We are starting up a business in Spain selling goods that will be sourced mainly from Germany and Austria. To avoid paying the VAT on the products in the country of origin we apparently need an international VAT number. The companies will then supply the goods without charging the VAT.
The problem is that our gestor has told us that it takes the Spanish office a minimum of 6 months to process an International VAT number. Until the number arrives we must pay the VAT. This will have a significant impact on our business as the VAT is around 19%. When you are starting a company an additional cost like this can have disastrous effect.
Our gestor suggested that we inform the suppliers that a number has been applied for and that although they will charge us the VAT, they should credit the amounts when the number becomes available. Our suppliers have said that they are not happy to do this.
Is there any way to speed things up, or is there any alternative? I cannot believe that Spain allows international trade to be so affected by slow processes.
Thanks
Sep 30, 2009 · jurdyr
International VAT number ? no you been told wrong .... if in the EU zone you used your ES vat number ....
Your EU Vat number is just your normal UK VAT number but preceeded by GB.
I assume you are VAT registered in the spain ?
If you are then you don't need to charge VAT on a sale to an EU member state so long as you have their VAT number and you show it on the invoice. This proves that they are VAT registered in their own country.
If the company that you are invoicing are not VAT registered then you must charge them spanish VAT.
If you are being invoiced by a company in another EU state then it's normal for them to request your GB Vat number so they don't have to charge you VAT.
In summary:
On your invoices alter your VAT number to start with GB to make it 'international'. Add onto the end of their postal address their VAT Number (VAT: ATU11956800) and don't charge them VAT.
I understand that it is totally acceptable to leave the GB in place at the front of your VAT number even for UK sales.
Hope that helps.
PS. I'm a Chartered Accountant but don't tell anyone!
that for the boss borther
Your EU Vat number is just your normal UK VAT number but preceeded by GB.
I assume you are VAT registered in the spain ?
If you are then you don't need to charge VAT on a sale to an EU member state so long as you have their VAT number and you show it on the invoice. This proves that they are VAT registered in their own country.
If the company that you are invoicing are not VAT registered then you must charge them spanish VAT.
If you are being invoiced by a company in another EU state then it's normal for them to request your GB Vat number so they don't have to charge you VAT.
In summary:
On your invoices alter your VAT number to start with GB to make it 'international'. Add onto the end of their postal address their VAT Number (VAT: ATU11956800) and don't charge them VAT.
I understand that it is totally acceptable to leave the GB in place at the front of your VAT number even for UK sales.
Hope that helps.
PS. I'm a Chartered Accountant but don't tell anyone!
that for the boss borther