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Client not VAT-registered in UK. How to deal with German VAT declaration. Conflicting rules.
Автор темы: fionn
Nikki Scott-Despaigne
Nikki Scott-Despaigne  Identity Verified
Local time: 16:22
французский => английский
UK client non-reg'd for VAT using services of a VAT-reg'd translator Dec 25, 2017

fionn wrote:

..., so from the client's perspective employing me is simply 19% more expensive...

That's what I mean about a level playing field.


If you are based in Germany and your UK client is not registered for VAT, then the situation is actually quite clear. You invoice the VAT you have to invoice to satisfy the rules in Germany. Your client pays your price inclusive of VAT. Simply put, if the client cannot recover VAT, that is his problem, not yours.

You can reduce the amount you invoice by the amount of the VAT if you like, but that means your undersell your service by 19%. You still have to charge the 19% VAT to satisfy the German rules and your UK-based client still cannot recover the amount of the VAT. The playing field will still not be "level", as you put it, as for the UK client to pay less, you have to invoice less, which means you are invoicing almost one fifth less than you would invoice otherwise, so you are the one losing out. But I repeat, if you are registered for VAT in Germany, you still have to charge VAT. End of story.

[Edited at 2017-12-25 18:41 GMT]
 
Tom in London
Tom in London
Великобритания
Local time: 15:22
Член ProZ.com c 2008
итальянский => английский
Correct Dec 25, 2017

Correct. If you are based in Germany you must abide by German tax rules and *nobody elses*. In fact I think it would probably be illegal for you to try to adjust your tax or invoicing arrangements to suit this or that intepretation of the rules of another country.

[Edited at 2017-12-25 19:46 GMT]
 
Nikki Scott-Despaigne
Nikki Scott-Despaigne  Identity Verified
Local time: 16:22
французский => английский
@Asker Dec 28, 2017

You may wish to give this source to your UK-based friend and potential client.

https://www.gov.uk/set-up-sole-trader

"VAT.
You must register for VAT if your turnover is over £85,000. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT."

For a one-off,... See more
You may wish to give this source to your UK-based friend and potential client.

https://www.gov.uk/set-up-sole-trader

"VAT.
You must register for VAT if your turnover is over £85,000. You can register voluntarily if it suits your business, for example if you sell to other VAT-registered businesses and want to reclaim the VAT."

For a one-off, it is probably not worth their while.

[Edited at 2017-12-28 16:48 GMT] ▲ Collapse
 
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Client not VAT-registered in UK. How to deal with German VAT declaration. Conflicting rules.







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