I'm doing some work for a client in the Netherlands. Partly from home and partly at their office in the Netherlands.
It is my understanding that I should not invoice VAT to this client. I have this understanding because in 2010/2011 I also worked for a Dutch company in a similar situation and was advised by my gestor that VAT was not required on my invoices to the Dutch company.
Can you help my by:
a). confirming my understanding is correct
b). supplying me with the supporting legal explanation (in English)
c). informing me if any documents can be requested to support these invoices both for my clients administration as well as my own
d). directing me where to obtain such forms if applicable.
If there is anything else I need to know in relation to this matter I would appreciate it very much if you would inform me accordingly.
The VAT Act 1992 says:
Through the VAT Act a procedure that is basically declare the exemption for those supplies of goods are dispatched or transported to another Member State of the EU is built, it will be in that other State of destination where operation is subject to tax effectively.
For intra-Community supplies of goods are considered exempt from VAT, the Act makes a number of formal requirements intended to ensure compliance with the objectives that inspired the creation of this exemption. These requirements are:
1 - The purchaser of goods proving to be an entrepreneur or professional identified for tax purposes in a Member State of the EU other than the Kingdom of Spain.
Currently, the only way the acquirer establishes this condition is by displaying a special NIF, called Community VAT number, whose validity must be confirmed with the data base VIES (Vat Information Exchange System), accessible through the website of the AEAT.
2 - That it is established that the destination of the goods is a country of the EU. Dispatch or transport of goods from the territory of application of Spanish VAT to a country of the EU can be credited with any valid means of proof in law and, in particular, the following are allowed in any case:
- If the transport is performed by the vendor or on his behalf by the corresponding transport contracts or invoices issued by the carrier. In these cases, it is desirable that the carrier detailing in your bill or in a separate note, the origin of the shipment, the destination and the goods to be shipped according to the bill of intra sale itself.
- If the transport is performed by the purchaser or on his behalf, by the acknowledgment of the acquirer, the duplicate invoice stamped with the purchaser, copies of shipping documents or other proof of the transaction.
In the case of non-compliance with any of the requirements set out above, the Treasury could consider incorrect application of the exemption for intra-Community supplies of goods. If so, consequently, require the seller (Spanish businessman or professional) the amount of VAT is not charged to the purchaser nor have entered into the Treasury.
The Register of intra-Community operators is formed by the people or organisations which have a Spanish NIF-VAT assigned:
Employers or workers who carry out intra-Community deliveries or acquisitions of goods subject to the Spanish VAT.
Employers or workers who carry out intra-Community acquisitions of services for which they are taxpayers, due to inversion, and the employers and workers who carry out intra-Community services taxed in the destination Member State when the taxpayer is the recipient of these services.
The fiscal identification numbers attributed by the Spanish Administration will be part of the VIES.
The operator will not appear in the VIES cesus if he or she has not correctly filled in form 036 and, in particular, if he or she has not ticked box 582 requesting inclusion in the Registry of intra-Community Operators (ROI).
To check the VIES census, in the Tax Agency website, go to Electronic Office/ Procedures and Services (Information and Register) / Other services / VIES.
If you are a Spanish community operator, you may check the validity of the NIF-VAT number of other Spanish intra-Community operators without a user certificate; however, to check the validity of other non-Spanish intra-Community operators' NIF-VAT number, you will need to have an electronic signature installed in the navigator you are using (Electronic Signature: CERES website).
Please remember that confirmation of the validity of a VAT number and of its conferring to a specific taxpayer is one of the evidences supporting exemption from the intracomunity delivery of goods or from VAT on the rendering of services due to its location in another Member State.