Spain.
Based in Washington DC, United States. An invoice to a Spanish customer when the goods are not leaving the UK will not normally be classed as an export, and UK VAT would be chargeable. To have two members of the EU at each other’s throats is unthinkable.
This should reflect commercial reality, and may be different from the contractual position. 25 March 2011. This means that the Spanish customer has the responsibility for dealing with most of the VAT issues. Some airlines, notably Ryanair, have taken strong stances against quarantine requirements.
Should we be charging the Spanish company UK VAT on the shipping charges or should this be zero charged with their IVA entry on the invoice?From 1 January 2010 the general rule is that the place of supply of services to a person who is in business is the place where the customer belongs for the purposes of receiving your supply.If your customer is in Spain, your supply will be outside the scope of UK VAT.My UK company is not VAT registered. As with other expenses under the Flat Rate Scheme, the right to reclaim that VAT in box 4 is very limited.Different rules may apply in certain less-common situations:UK VAT may need to be charged on services performed in Spain or to clients based in Spain, depending on the type of service supplied. It may then reclaim that same amount from HMRC by including it as input VAT in box 4 of the same VAT return, subject to the normal rules about recovering input tax. Cost of living in Spain Averages costs in Spain vs. the UK By Just Landed. It depends on their goals. They are requesting that I provide them with a VAT number otherwise it seems like they won’t do business with me. Many of these exempt countries have strict quarantine or testing procedures before allowing foreign nationals to enter the country.The list will continue to change as the coronavirus pandemic remains uncontrolled. So far I have invoiced without VAT or IVA.They may be after your UK Companies House number or your UK corporation tax reference number, but it is more likely that they do not understand the UK VAT registration requirements, or how VAT works within the EU.
A Spanish accountant will be able to confirm.However, there is an scenario that doesn’t seem clear.A UK VAT Registered business paying for a service occurring within Spain boundaries, for example paying an Spanish Courier Transport Company to do a delivery between Barcelona and Madrid.In this scenario, does the Spanish Courier Company have to charge us IVA on the invoice issued to a VAT Registered UK Company?I am sure that your answer will be highly appreciated in your post.Deliveries from one UK destination to another UK destination (where they are not part of a single international transportation, for example from London to Southampton for goods which are destined for Bilbao) are subject to UK VAT, regardless of where the supplier and customer are based. The reason for this apparently circular exercise is to avoid VAT distortions between buying goods in the UK and importing them from Spain.
Has there any VAT to be charged? However, goods being sent to Spain on behalf of a UK customer without a Spanish VAT number are still subject to UK VAT at the usual rate (even if the customer is registered for VAT in the UK).Even where VAT is not being charged, the net value of the sale must still be reported on the UK VAT return, in boxes 6 and 8. Unfortunately for airlines flying between Spain and the UK, this means one less tourist hotspot on which to operate flights and earn revenues. Additionally, the Foreign & Commonwealth Office (FCO) of the United Kingdom is advising against non-essential travel to mainland Spain.On July 25th, the FCO announced it was reinstating its quarantine requirements for passengers coming from Spain. However, Norway’s mandated quarantine for arrivals from Spain only last ten days.While some may continue with their travel plans, there are undoubtedly many who were hoping for a summer holiday that will not come true. Be in the know. Hi there, I import food from the UK to Spain and as I am VAT registered in Spain I pay the IVA here. I deliver some remote IT services to some spanish VAT registered companies, but all of a sudden I am required to bring some international number, otherwise they won´t accept or pay my invoices. Where the business can reclaim all of its input VAT, there is no net cost in making the reverse-charge entries.If the UK business accounts for VAT on the Flat Rate Scheme, it does not need to pay Flat Rate VAT on the value of the reverse-charged service, or include it on its VAT return.The reverse-charge does not apply to services which are normally exempt or zero-rated in the UK, for example, some financial or education services.If, exceptionally, one of the following services is charged to a UK business, but the service is effectively used and enjoyed outside the EC (for example, in Jersey), the reverse-charge does not need to be applied in the UK.