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Posted Tue, 31 May 2022 14:53:06 GMT by OLIVIACO
Hi there, I have a new private client based in Spain who has asked for translation services. I am a VAT registered sole trader. Am I right that I need to pay VAT in Spain? Any advice would be gratefully received. Thank you.
Posted Tue, 31 May 2022 16:07:00 GMT by HMRC Admin 2
Hi,

If you provide services to a consumer in Spain, then normally the place of supply would be where the supplier belongs.

However please see the following guidance for certain services to be treated as supplied in the customers country. This would mean that the sevice would be outside the scope of UK VAT.

Place of supply of services (VAT Notice 741A) 6. The place of supply rules for services

Place of supply of services (VAT Notice 741A) 12. B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK

Thank you.
Posted Wed, 01 Jun 2022 08:39:56 GMT by OLIVIACO
Thanks for this. Yes, I understand that this is outside the scope of UK VAT but I believe that I do need to pay (or my client needs to pay) Spanish VAT (IVA). Can you give me more information on this?
Posted Wed, 01 Jun 2022 14:35:07 GMT by HMRC Admin 2
Hi,

It would be difficult to comment on a registration requirement in another country. However we don't believe you would need to register in Spain and charge VAT. 

If the situation was reversed and you were a Spanish company providing translation services to individuals in the UK, then there would be no requirement to register. There would only be a requirement to register in Spain if you are providing digital services to consumers.

If you are providing digital services then you could register for non union MOSS in any member state and charge and account for the Spanish VAT in this way

The guidance states:

VAT accounting options for UK businesses supplying digital services to consumers in the EU

The place of supply will be where the consumer is located. You must either:
  • •register for the Non-Union VAT MOSS scheme in an EU member state
  • •register for VAT in each EU member state where you supply digital services to consumers
VAT rules for supplies of digital services to consumers

Thank you.

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