| Pages in topic: [1 2] > | VAT exemption statement on invoices post-Brexit Thread poster: Wendy Cummings
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Wendy Cummings 
United Kingdom
Local time: 16:46
Spanish to English
+ ...
Hi all,
As a sole trader based in the UK, my invoices have until now stated:
VAT exempt invoice pursuant to Article 196 of Directive 2006/112/EC
This service is subject to the VAT reverse charge
I do not have a VAT number pursuant to Article 272.1(d) of Directive 2006/112/EC and to HMRC Notice 700/1 (Apr 2018)
Does anyone know what I should be putting in the post-Brexit era? Is reference to the HMRC notice alone enough?
| | | | | For German clients ... | Oct 1, 2020 |
First of all, we're already in the post-Brexit era, although I didn't really realize that until I just looked it up. Second of all, if the post-Brexit transition period ends on December 31 with a deal, then whatever the deal says will be what you need to do (although I wouldn't think that retaining the reverse-charge procedure could be part of a deal). If there is no deal and there is also no post-post-Brexit-post-transition transitition period, then I guess the UK just becomes another non-EU co... See more First of all, we're already in the post-Brexit era, although I didn't really realize that until I just looked it up. Second of all, if the post-Brexit transition period ends on December 31 with a deal, then whatever the deal says will be what you need to do (although I wouldn't think that retaining the reverse-charge procedure could be part of a deal). If there is no deal and there is also no post-post-Brexit-post-transition transitition period, then I guess the UK just becomes another non-EU country for tax purposes on January 1.
In that case, I think German clients wouldn't need or expect any kind of special notice on your invoices to them. The UK would be just another non-EU country, like Switzerland or Canada, and your invoice ought to be perfectly acceptable to the German tax office (and therefore to your German clients) without any bells and whistles beyond the standard information about date, invoice number, tax number, address, etc. The only thing to worry about would be what HMRC wants from you.
And I have specifically referred to German clients because that is the situation I am familiar with (receiving invoices to Germany from non-EU countries) and I know that some countries and some clients in some countries tend to be far more particular about these things. ▲ Collapse
| | | | Sheila Wilson
Spain
Local time: 16:46
Member (2007)
English
+ ...
| EC directives won't apply | Oct 1, 2020 |
Wendy Cummings wrote: Directive 2006/112/EC
I doubt that it would be correct to quote that and similar directives. I believe the "EC" means they are EU directives.
Have you looked in the Doing business in the UK forum?
| | | | Wendy Cummings
United Kingdom
Local time: 16:46
Spanish to English
+ ...
TOPIC STARTER | Exactly my point | Oct 1, 2020 |
Sheila Wilson wrote:
I doubt that it would be correct to quote that and similar directives. I believe the "EC" means they are EU directives.
That is exactly my point.
These directives won't apply, so what, if anything, should I write instead to make sure that my invoices do not have to include VAT?
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Tom in London
United Kingdom
Local time: 16:46
Member (2008)
Italian to English
| NOthing to do with the EU | Oct 1, 2020 |
simple:
Just write "VAT not applicable as per UK Tax Rules" at the bottom of your invoice. In English.
As a UK taxpayer you are required to follow UK rules - it would be illegal to try to follow anyone else's tax rules. And needless to say, your invoices should be written in English.
| | | | | Sorry, maybe now I've understood your question. | Oct 1, 2020 |
Wouldn't you just write whatever you currently write for all your clients who are located neither in the UK nor in the EU?
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You don’t *need* to put anything, but if there’s one thing I’ve learned on ProZ over the years (possibly the only thing) it’s that Spanish clients can’t get their heads around some UK translators not having a VAT number.
The easiest solution is to get one.
| | | | Wendy Cummings
United Kingdom
Local time: 16:46
Spanish to English
+ ...
TOPIC STARTER | Invoice language | Oct 1, 2020 |
Tom in London wrote:
And needless to say, your invoices should be written in English.
Hi Tom,
Could I please ask why? Is it just customary or is there a legal implication?
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Wendy Cummings
United Kingdom
Local time: 16:46
Spanish to English
+ ...
TOPIC STARTER | Wrong assumption? | Oct 1, 2020 |
Michael Wetzel wrote:
Wouldn't you just write whatever you currently write for all your clients who are located neither in the UK nor in the EU?
If I had any non EU clients, I would! For my UK clients, I do not put anything.
The reason I began including this statement on my EU invoices was because some agencies tried to apply VAT or queried the situation. And in another case, the client specifically asked me to include this statement.
Chris S wrote:
You don’t *need* to put anything, but if there’s one thing I’ve learned on ProZ over the years (possibly the only thing) it’s that Spanish clients can’t get their heads around some UK translators not having a VAT number.
This was partly what prompted me to include the statement in the first place. For other Spanish agencies that *still* don't understand, I just quote them my UTR and that seems to shut them up.
Perhaps therefore I am wrong to assume that I need to replace it with anything at all?
| | | | Tom in London
United Kingdom
Local time: 16:46
Member (2008)
Italian to English
Wendy Cummings wrote: Tom in London wrote:
And needless to say, your invoices should be written in English. Hi Tom, Could I please ask why? Is it just customary or is there a legal implication?
Because you are a UK taxpayer, answerable to the UK tax authorities and no-one else. If the taxman ever decides to pay you a visit and go through your accounts, he will want to see your invoices, in a language he understands. Nobody in any other country has any discretion in these matters.
[Edited at 2020-10-01 15:50 GMT]
| | | | Wendy Cummings
United Kingdom
Local time: 16:46
Spanish to English
+ ...
TOPIC STARTER
Tom in London wrote:
Because you are a UK taxpayer, answerable to the UK tax authorities and no-one else. If the taxman ever decides to pay you a visit and go through your accounts, he will want to see your invoices, in a language he understands. Nobody in any other country has any discretion in these matters.
[Edited at 2020-10-01 15:50 GMT]
Thank you, that is a very good point that I had not considered before.
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As Tom is such a stickler for accuracy, I feel duty-bound to point out that UK invoices don’t have to be in English. Or Welsh. They could legally be in Klingon.
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Mervyn Henderson (X)
Spain
Local time: 17:46
Spanish to English
+ ...
Does the taxman actually drop by over there, then, to save you the trouble? That's an innovative service, and no mistake.
| | | | Tom in London
United Kingdom
Local time: 16:46
Member (2008)
Italian to English
Mervyn Henderson wrote:
Does the taxman actually drop by over there, then, to save you the trouble? That's an innovative service, and no mistake.
The UK tax authorities can come and check on your accounts at any time, looking for false statements, errors, etc. They do this on a random basis. That's why it's important to keep your book-keeping well-organised.
| | | | Mervyn Henderson (X)
Spain
Local time: 17:46
Spanish to English
+ ...
In that case, I'd go at night if I were a taxman. He goes during the day and from behind those twitching lace curtains old Mrs. Pettigrew at Nº 18 can see the van parked outside with "Taxman - Any time, any place, anywhere" written on the side, and then him striding up the garden path. Giving her ample time to hide away those B accounts, off-shore records and cash from drug sales. And she can pretend to be deaf or not understand as she stands there screeching inconsequentially to him through th... See more In that case, I'd go at night if I were a taxman. He goes during the day and from behind those twitching lace curtains old Mrs. Pettigrew at Nº 18 can see the van parked outside with "Taxman - Any time, any place, anywhere" written on the side, and then him striding up the garden path. Giving her ample time to hide away those B accounts, off-shore records and cash from drug sales. And she can pretend to be deaf or not understand as she stands there screeching inconsequentially to him through the door, while all the time she's really deleting files with the damning information from her PC. Definitely at night, and with a sledgehammer too, like the police. It's a jobsworth's dream come true. ▲ Collapse
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