VAT charged on an invoice suppied by a Spanish Company
Options
kirstinv
Registered Posts: 12 New contributor 🐸
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
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
0
Comments
-
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
1 -
Thank you. Very helpful advice
0 -
Yes they completley agreed and are sending a revised invoice with no VAT. Once again thank you for the advice0
-
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.0
-
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
0
