Sorting out Spanish 'VAT'

[d000hg]

I got a guy in Spain to do a piece coding for me, at a pre-agreed price of €600.

His invoice bills me an extra €96 as Sales Tax @16%, the Spanish version of VAT - I think they call it IVT.

All OK, I don't exactly know how I reclaim this but will find out. The problem is, does dealing in Euros make it more tricky? E.g. my bank account and my accounts will deal only in pounds, but the actual invoice and reclaimed VAT will work in Euros. Does it actually make any difference at all?

[MPwannadecentincome]

Well if it had been the other way round and you had his VAT number you would not have to put VAT on your invoice to him. Assuming there is some common rule here amoungst the EU countries you should supply your VAT number to him and he should credit the old invoice off and issue a new one without VAT.

As ever, check with HMRC or your accountant.

[jverdera]

I'm currently doing some contracting jobs from Spain.

In my case, I send an invoice with 0% VAT since it's a service between EU cuntries and therefore not VATable.

With Hardware & Software you don't have to declare VAT but you need to be registered for Intrastat so they track your invoices. I believe this is a burden because you have to start filing monthly reports.

More info:
http://www.uktradeinfo.com/index.cfm?task=intrastat

[tim123]

I got a guy in Spain to do a piece coding for me, at a pre-agreed price of €600.

His invoice bills me an extra €96 as Sales Tax @16%, the Spanish version of VAT - I think they call it IVT.

All OK, I don't exactly know how I reclaim this but will find out. The problem is, does dealing in Euros make it more tricky? E.g. my bank account and my accounts will deal only in pounds, but the actual invoice and reclaimed VAT will work in Euros. Does it actually make any difference at all?

AIUI, if you are VAT registered, you give him your VAT number and he shouldn't charge you his local VAT on an intra-EU transaction.

tim