Claiming VAT on service puchase in foreigner country

[DLOT]

Hi,
I will have to purchase a Spanish Translation from a Spanish Consultant based in Madrid.

Being my company registered in UK, can I claim VAT back on that?

And broadly speaking is it possible to claim VAT back on goods and services purchased in other European countries (for instance a business dinner receipt made in Italy?)

This is very important for us as we work in Spain, Italy and UK.
Thanks in advance

Regards
Dlot

 

Hi
Firstly you should not have to pay VAT on your Translation as if they are based out of the uk you will not pay VAT.
Secondly yes you can claim VAt back from spending in outher EU countries.

You said that you work in Spain and Italy. I work for a company that offers better rates of exchange than the high street bank. Our service can be used by Private individuals and corporate bodies.

I hope this helps
Mat aka Good Rates

 

[BMS]

Hi DLOT

If this type of EC trade is a regular occurence you may want to contact Customs & Excise to obtain a copy of Notice 723 Refunds of VAT in the European Community for EC and Non EC Businesses.

You cannot reclaim VAT on EC Purchases as no VAT can be charged on EC supplies.


Just a thought but could you not find a translator in this country, it may work out cheaper and if VAT was charged you could offset this against output tax ?

 

[BMS]

P.S. Mat

Does your company deal in euro's as I have a client who is just about to be awarded a 1.5 million sterling contract but will be paid in euro's

 

[VeryMark]

You don't pay VAT on purchases made from other EU countries if you have provided the supplier with your VAT number. (Don't forget to prefix the VAT number with the letters "GB".) You then declare the VAT to Customs & Excise as if you've paid it, and claim it back if it's a legitimate business purchase. Of course, you have to be registered for VAT to claim it back.

(Don't forget too that the EU is now 25 countries - but the Channel Islands are not part of the EU.)

However, if you've paid VAT abroad as part of e.g. a cash transaction, you can't claim it back from UK Customs & Excise - I'm guessing you might be able to claim it back from the local VAT authority if you went to the trouble.

The other point is that if you can (and want to) bill the customer separately for out-of-pocket costs he would have had to incur anyway if he had done the work directly himself (the "disbursements" rule), then you don't have to charge VAT on those costs.

The other thing you have to watch with VAT is the point of supply - if you buy software online from the USA for example, you are now liable for VAT on the purchase.

Some of this may sound odd, but that is the way the system works according to our understanding - we have clients in four continents for whom we do work in 77 countries, believe it or not.

Oh, I can by the way recommend a good translations agency local to us who we work with, which deals in most languages.

 

[BMS]

Hi Crossguard

I'll take your word for it, normally deal with export as opposed to import.