Question on IVA

[trendytots]

Are there any members, registered for VAT in Spain, that purchase goods from the UK that would be willing to explain the accounting of these purchases on the Spanish VAT return.

My accountant has told me that I need to pay VAT at 22% but that I cannot reclaim anything.

As the payment date is fast approaching an early reply would be greatly appreciated.

Many thanks

The only way you can reclaim VAT from outside Spain is by registering on the European Traders List, my accountant did this for free as it isn't much more additional work per quarter - however they did warn that registering on this list "may" provoke a tax investigation/look over your records but that's unlikely. By doing this the company you buy from does not charge you VAT so you have nothing to claim back

Unfortunately it would be too late for this return

*also, a small point, unlike in the UK as a business/sole trader you can't not be registered for VAT in Spain

[trendytots]

Originally Posted by ShinyAndy

The only way you can reclaim VAT from outside Spain is by registering on the European Traders List, my accountant did this for free as it isn't much more additional work per quarter - however they did warn that registering on this list "may" provoke a tax investigation/look over your records but that's unlikely. By doing this the company you buy from does not charge you VAT so you have nothing to claim back

Unfortunately it would be too late for this return

*also, a small point, unlike in the UK as a business/sole trader you can't not be registered for VAT in Spain

Hi

I am registered on the European Traders List and don't pay VAT on my purchases in England. I just can't get my head around the fact that my accountant says that I have to pay over VAT of 22%, on my UK purchases, as part of my VAT return here in Spain and can't claim anything back. It seems against the spirit of the European Trade as I am being penalised for buying in other Member States.

So you haven't been charged VAT on a purchase from the UK (assume the invoice shows no VAT) but you are still trying to claim the VAT back or your accountant is adding VAT back on? Where is he getting the 22% from as well?

[trendytots]

Originally Posted by ShinyAndy

So you haven't been charged VAT on a purchase from the UK (assume the invoice shows no VAT) but you are still trying to claim the VAT back or your accountant is adding VAT back on? Where is he getting the 22% from as well?

This is where I am totally confused. I have spoken to other expats and they say that you have to pay an additional 4% on EU purchases, which in my mind is a penalty for purchasing outside of Spain. i.e Pay over at 22% and reclaim at 18%. I could learn to live with the 4% but if I have to pay 22% I would have to increase all of my prices.

I'm even more confused! I've never tried to claim back VAT from the UK as until recently I've just paid it and marked up accordingly due to not being on the EU VAT registry but I assume as you are on this list that the UK company is not charging you VAT, hence I don't understand what you are trying to reclaim as there wasn't any VAT in the first place?

I would suggest talking to another accountant perhaps, EU trading laws seem incredibly complicated but I have never heard anything along the lines of the things you are talking about

[gus-lopez]

You've bought from the UK , Vat free. So there's nothing to reclaim. You sell in spain & add 18% to your selling price which is what you've got to hand over to the taxman . I can't see where the additional 4% comes from & would have thought it was illegal under EC law.

[trendytots]

Originally Posted by gus-lopez

You've bought from the UK , Vat free. So there's nothing to reclaim. You sell in spain & add 18% to your selling price which is what you've got to hand over to the taxman . I can't see where the additional 4% comes from & would have thought it was illegal under EC law.

That is exactly what I think. I am hoping to find someone who trades in a similar manner to see how they account for it on their returns. I know that in the UK you just make a double entry so that it is recorded but nothing is charged. I had assumed that it would be the same in Spain...............

[yoda]

I am a sole trader in Spain have a Vat number and I am also being charged 22% on goods I import from other EU copuntries. Can anyone explain why.

[steve_in_spain]

As someone else has said, if you are on the EU traders list then the company in the UK should not charge you VAT. I did hear another story of someone paying the extra percentage here, but as said, get your accountant to put you on that list then you can buy VAT free from the UK and sell to other EU countries without adding VAT also.