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Adding VAT/IVA for Spanish Company

I am not VAT registered -am billing a client based in Spain - they insist they have to pay 21% IVA

Didn't find your answer?

They want me to reduce my charges to lessen the burden on them.

Surely this is not right?

They are paying for leads from my website which finds them clients in Spain for car insurance.

Appreciate any advice thanks.

 

Replies (5)

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By David Ex
27th May 2021 17:21

igrowmoney1966 wrote:

They want me to reduce my charges to lessen the burden on them.

What does your contract say?

What has your accountant advised in relation to your overseas tax obligations?

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VAT
By Jason Croke
27th May 2021 20:42

Is this a new contract?

I ask because Brexit has not affected the rules on services. I suspect the Spanish are trying to blag a discount by blaming VAT.

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VAT
By Jason Croke
27th May 2021 20:44

Duplicate post

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Replying to Jason Croke:
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By I'msorryIhaven'taclue
27th May 2021 21:33

Has Brexit made a difference to digital-flavoured services, Jason?

I'm struggling to get a handle on that at the moment. Rule, exception (and all that might accompany it).

The more I try to swot up on EU digital services, the more confused I become. Which I concede could be an age thing - maybe the time has come to just mow the lawn and take a 25 degree nap!

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Replying to I'msorryIhaven'taclue:
VAT
By Jason Croke
28th May 2021 07:30

Digital services - B2B was normal place of supply rules, being if customer is a business then they account for VAT, if customer is a consumer then register for MOSS.

Other services - B2B was normal place of supply rules, being if customer is a business then they account for VAT, if customer is a consumer then you charge VAT based on suppliers location except if they were land related or where performed services.

That's not changed post Brexit, but from July the EU intends to bring the land and where performed services (B2C) under the auspices of One Stop Shop.

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