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Confused- Spanish/UK Website with Spanish adverts

How to re-set up billing with one owner now living in Spain and other in UK

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I keep reading Brexit articles and am getting more confused! I am one partner in a very small Tourism Website business which was set up when both partners were resident in Spain.   I am now resident in the UK (Self Employed) and do most of the website provision/tech/instagram posting etc.   My partner is still Spanish resident (possible for her to set up as Autonomo) and she does most of the writing, FB posting etc.      The way we keep the website going is by invoicing Business to advertise on our site - the site is viewed worldwide.   For the last 2 years we have not issued any invoices  - but would like to start again.      Really looking for advice on the best way to start up again...   does my partner in spain invoice the customers.... and then I invoice her for my time?   For my invoice am I B2B in digital services so should I be declaring separately to Spain as website hosting is currently purchased via UK supplier?  Any thought and advice on how to keep this legal and low cost welcome!

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By I'msorryIhaven'taclue
05th May 2021 13:25

Just to be clear, and to set the ball rolling:

You're already registered in UK as self-employed;
You and your partner are currently registered as a business partnership in Spain (although that partnership hasn't invoiced its customers for some 2 years);
Your Spanish partner is tax resident in Spain, but not in the UK?
You yourself are still registered / liable for Spanish taxes on partnership income?

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A Putey FACA
By Arthur Putey
05th May 2021 13:35

I'm confused.es

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By reshapedesign
05th May 2021 15:58

We aren't officially a business partnership in Spain any more. We both work on the website. I suppose that we are both separate entities (both self employed entities in our own residence countries) working on the same website.....nothing that is officially a partnership! The problem is that all the money to be invoiced is to Spanish companies and so naively we just thought that may be easier on the autonomo of the lady in Spain (thereby no questions about IVA numbers etc). However, we both need to be able to earn some money from the business - I to pay the web hosting/my web design time/ in the UK..... and the other takes money out for her writing time. If we set up in this way then the Spanish Resident Autonomo can take money out of her account for her work. However, I surely would have to create a UK invoice for my services to send to her? Thereby my UK Self Employment is invoicing a Spanish Self employed person for services including web services.

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A Putey FACA
By Arthur Putey
05th May 2021 16:40

You are asking about the back end of the process, but your options also depend on who the customers (and the Spanish tax authorities) think they are dealing with. So, who do the customers sign up with? Wbat do your T&Cs say?

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By reshapedesign
06th May 2021 08:11

In the past (and our thought for billing now) is that invoices are sent from the Spanish Autonomo (the lady I work with) to the customer (eg. a hotel that wants to advertise on the site). Both those parts are in Spain, it is the autonomo on the T&Cs.

For me - I send an invoice from my UK self employment to the Autonomo in Spain so that I can supply digital services (web hosting/webname etc) and consultancy services. I suppose it is really that part that I am asking about in terms of if I am classed as supplying digital services and therefore should I be setting up as an entity in Spain? (I would rather not - and if I have to surely it would be worth me running the whole business as me and my writing partner just invoicing me which apparently she can do from spain without autonomo as an ad hoc journalist).

Just to complicate things lots of readers - who are from all over the world - keep asking us to set up donations on facebook because of how we have kept them up to date during COVID (many have holiday homes in the area/are english speakers who live there/or are just interested when they can next holiday). God know how that would work!

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By reshapedesign
06th May 2021 08:12

And thank you so much for looking at this .... it was so much easier when we both lived in Spain !

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A Putey FACA
By Arthur Putey
06th May 2021 10:18

Is this a hobby business that won't generate much income? If so, then its not worth the effort of putting an elaborate structure in place and maybe just accept donations to keep the site going.

But on the face of it your services are what you seek payment for, and the simplest way of doing that would be to invoice your partner for support services and perhaps ignore the website for now. I say "perhaps", because you should consider who owns the site assets currently, and how/where the site is hosted, and what happens if one of you decides they no longer want to participate. That brings a number of legal issues into play and also options for creating either a UK or Spanish limited company under which the business is run.

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By reshapedesign
06th May 2021 14:04

It is definitely a hobby business but we have got more and more people wanting to advertise so we aren't sure if it will get bigger.
Reading your note maybe we should look at setting up a UK Limited Company (it doesn't look that expensive) and then maybe paying someone like Avalara/Hello Tax to sort out the Spanish Vat Number/Submissions etc????
The autonomo/gestor would cost us around 2-3000 per year so it makes me wonder if doing the above instead would cost around the same but make it more legal/flexible/and allow me to do the paperwork. Any thoughts?

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