VAT charged on an invoice suppied by a Spanish Company

kirstinv

Hello there,
I have received an invoice from a spanish company charging for commission. They have added 21% sales tax to the amount. I have only started doing commission payments and am not sure that this is correct as we cannot reclaim the VAT.?
Can anyone advise?

Thank you in advance
Kirstin

reader

Give them your VAT number and they should remove the VAT (even without a UK VAT number they should not have charged their Spanish VAT, i.e. should be outside of the scope): https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services/vat-notice-741a-place-of-supply-of-services

See sections 2.1 and 6.3

kirstinv

Thank you. Very helpful advice

reader

kirstinv said:

Thank you. Very helpful advice

Let us know the conclusion.

Do they amend the invoice?

kirstinv

Yes they completley agreed and are sending a revised invoice with no VAT. Once again thank you for the advice

reader

I wasn't 100% sure that I was right for commission so it's good to hear that you managed to sort it out. Thanks for the update.

reader

Also, your first post was right, i.e. you cant reclaim Spanish VAT on a UK VAT return.

If they didn't change the invoice you would have had to reclaim the Spanish VAT using a long winded process: https://www.gov.uk/guidance/vat-refunds-for-uk-businesses-buying-from-other-eu-countries