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IVA on articles in magazines?

IVA on articles in magazines?

Old Jul 18th 2013, 7:22 pm
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Default IVA on articles in magazines?

HI
Any authors out there can you tell me whether IVA should be charged on payments for articles written for UK magazines? What about advances for books written for UK publishers?
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Old Jul 19th 2013, 7:59 pm
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Default Re: IVA on articles in magazines?

Originally Posted by angiescarr
HI
Any authors out there can you tell me whether IVA should be charged on payments for articles written for UK magazines? What about advances for books written for UK publishers?
You only charge IVA / VAT for your work if you are VAT registered and have a VAT number.
You can volunteer to be VAT registered (in which case you can claim back VAT on things you buy that are necessary for your work). Alternatively, if you earn more than the VAT threshold - some thousands, I don't recall the exact numbers - in any quarter or year then you MUST register.
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Old Jul 19th 2013, 8:18 pm
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Default Re: IVA on articles in magazines?

Originally Posted by pete_l
You only charge IVA / VAT for your work if you are VAT registered and have a VAT number.
You can volunteer to be VAT registered (in which case you can claim back VAT on things you buy that are necessary for your work). Alternatively, if you earn more than the VAT threshold - some thousands, I don't recall the exact numbers - in any quarter or year then you MUST register.

Sorry, you've misunderstood. I live in Spain where of course I'm IVA registered. there is no 'threshold' here. When I send an invoice for a piece of writing for an English (craft) mag...does it have IVA? My Spanish accountant doesn't know. The mag I write for has fixed payments which have actually gone down since I used to write for them 10 years ago and are now pretty pathetic! (Lower circulations I presume) I don't want to lose even more in IVA if I can help it
So if anyone writes for Brit mags and is declaring over here. Please let me know how it works for you. Privately if you don't want to 'come out' as an author .
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Old Jul 19th 2013, 8:54 pm
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Default Re: IVA on articles in magazines?

Originally Posted by angiescarr
Sorry, you've misunderstood. I live in Spain where of course I'm IVA registered. there is no 'threshold' here. When I send an invoice for a piece of writing for an English (craft) mag...does it have IVA? My Spanish accountant doesn't know. The mag I write for has fixed payments which have actually gone down since I used to write for them 10 years ago and are now pretty pathetic! (Lower circulations I presume) I don't want to lose even more in IVA if I can help it
So if anyone writes for Brit mags and is declaring over here. Please let me know how it works for you. Privately if you don't want to 'come out' as an author .
angie have you considered another accountant - one that can give you an answer and prove it to you from the legislation

I personally would have thought the answer was YES, but......
interested enough to actually start ploughing thru the legislation as it is an interesting question.
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Old Jul 19th 2013, 9:16 pm
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Default Re: IVA on articles in magazines?

If you do find the answer, it may be of use to others on here. I was under the impression that goods/services sent to another country were VAT zero exempted, but someone here may be able to correct that.
I may be in the situation of importing stuff into Spain from the UK from the Autumn (if a business opp comes off, but only 50% likelihood at moment) but obviously I'll be taking advice from the accountant/gestor under that scenario.
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Old Jul 19th 2013, 9:48 pm
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Default Re: IVA on articles in magazines?

Originally Posted by steviedeluxe
If you do find the answer, it may be of use to others on here. I was under the impression that goods/services sent to another country were VAT zero exempted, but someone here may be able to correct that.
I may be in the situation of importing stuff into Spain from the UK from the Autumn (if a business opp comes off, but only 50% likelihood at moment) but obviously I'll be taking advice from the accountant/gestor under that scenario.
I'm actually waiting to hear back from my gestor about some written translation work I'm going to be doing for a UK based company - the principle is the same I guess, so I'll post when I find out

I am IVA registered & charge 21% to clients in Spain
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Old Jul 19th 2013, 9:56 pm
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Default Re: IVA on articles in magazines?

I've always understood that for personal purchases across Europe the VAT is charged by the vendor.
Whilst for business purchases it is paid by the buyer.

For trade involving the movement of goods between two VAT-registered businesses in different EU countries, VAT is paid by the customer at the rate which applies in their country.

For example, if you acquire goods from a VAT-registered Spanish business you pay VAT at UK rates. If you dispatch goods to the same business, the VAT is paid by your Spanish customer at Spanish rates.


Above should read goods or services.

https://www.gov.uk/trading-in-the-eu...-within-the-eu
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Old Jul 20th 2013, 1:00 am
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Default Re: IVA on articles in magazines?

Originally Posted by angiescarr
Sorry, you've misunderstood. I live in Spain where of course I'm IVA registered. there is no 'threshold' here. When I send an invoice for a piece of writing for an English (craft) mag...does it have IVA?
I would still say: yes. You charge VAT for the service you provide. The company who "buys" the service then claims back the VAT in their quarterly return. IIRC there's an entry on the UK VAT return form specifically for VAT from overseas sources. If the magazine is VAT registered (which almost every business would be, or they couldn't claim back VAT they've paid on goods & services - though I believe banks can't claim back VAT) and they are refusing to accept VAT-inclusive invoices it's possible they are claiming the VAT back from HMRC but without paying it themselves. A tip-off to Customs & Excise would be in order as they take a very dim view of VAT fraud.

Last edited by pete_l; Jul 20th 2013 at 1:09 am.
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Old Jul 20th 2013, 6:29 am
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Default Re: IVA on articles in magazines?

Originally Posted by pete_l
I would still say: yes. You charge VAT for the service you provide. The company who "buys" the service then claims back the VAT in their quarterly return. IIRC there's an entry on the UK VAT return form specifically for VAT from overseas sources. If the magazine is VAT registered (which almost every business would be, or they couldn't claim back VAT they've paid on goods & services - though I believe banks can't claim back VAT) and they are refusing to accept VAT-inclusive invoices it's possible they are claiming the VAT back from HMRC but without paying it themselves. A tip-off to Customs & Excise would be in order as they take a very dim view of VAT fraud.
I do appreciate the advice. But "I would still say" doesn't cut it. I don't actually have to CHARGE IVA because I have their VAT number in any case. That's the way it works. But there's a difference between IVA that is payable but not charged because of agreements between EU countries and IVA exempt. This is the nicety I'm trying to get to the bottom of.
As for changing a perfectly good Accountant with whom I've got a very good relationship That's not going to happen! In a sea of Spanish businesses (this is not expat land) she does her best to negotiate her way through the unusual nature of my business and spends more than the usual amount of time on my books than the relatively Easy Spanish rural businesses. She's not sure on this point and is happy to let me find out for myself if I can. I will feed back if I find out anything definitive.
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Old Jul 20th 2013, 6:30 am
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Default Re: IVA on articles in magazines?

Originally Posted by Fredbargate
I've always understood that for personal purchases across Europe the VAT is charged by the vendor.
Whilst for business purchases it is paid by the buyer.

For trade involving the movement of goods between two VAT-registered businesses in different EU countries, VAT is paid by the customer at the rate which applies in their country.

For example, if you acquire goods from a VAT-registered Spanish business you pay VAT at UK rates. If you dispatch goods to the same business, the VAT is paid by your Spanish customer at Spanish rates.


Above should read goods or services.

https://www.gov.uk/trading-in-the-eu...-within-the-eu
That's just blown my already overheated head!
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Old Jul 20th 2013, 10:59 am
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Default Re: IVA on articles in magazines?

Originally Posted by angiescarr
I do appreciate the advice. But "I would still say" doesn't cut it. I don't actually have to CHARGE IVA because I have their VAT number in any case. That's the way it works. But there's a difference between IVA that is payable but not charged because of agreements between EU countries and IVA exempt. This is the nicety I'm trying to get to the bottom of.
As for changing a perfectly good Accountant with whom I've got a very good relationship That's not going to happen! In a sea of Spanish businesses (this is not expat land) she does her best to negotiate her way through the unusual nature of my business and spends more than the usual amount of time on my books than the relatively Easy Spanish rural businesses. She's not sure on this point and is happy to let me find out for myself if I can. I will feed back if I find out anything definitive.
if you are happy with the accountant you have - fine, and I didn't actually say give her up.
but she is unable at this time to give you a definitive answer to this question for you, leaving you to ask questions on BES.

tax legislation in any country can be a minefield and surely either thru your existing acct or direct to someone who specialises in IVA/VAT who can give you the definitive answer, that will stand you in good stead with the Hacienda.

hth
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Old Jul 20th 2013, 9:05 pm
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Default Re: IVA on articles in magazines?

Originally Posted by Domino
if you are happy with the accountant you have - fine, and I didn't actually say give her up.
but she is unable at this time to give you a definitive answer to this question for you, leaving you to ask questions on BES.

tax legislation in any country can be a minefield and surely either thru your existing acct or direct to someone who specialises in IVA/VAT who can give you the definitive answer, that will stand you in good stead with the Hacienda.

hth
I offered to ask around. I imagine the number of clients she has with such specific needs are very limited! I can't imagine there's anyone in our local town with more experience. This is a big company and she's the bosses daughter and a very intelligent lady. If I pass it back to her she will look it up.

I must admit I use BE as a short cut to personal experience and/or paying the price for mistakes. (I hope I give as much info as I ask for) And I think this is the best side of BE. Unfortunately I do understand your "EEK" as not all threads stay informative.
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Old Jul 21st 2013, 1:28 am
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Default Re: IVA on articles in magazines?

Originally Posted by angiescarr
I offered to ask around. I imagine the number of clients she has with such specific needs are very limited! I can't imagine there's anyone in our local town with more experience. This is a big company and she's the bosses daughter and a very intelligent lady. If I pass it back to her she will look it up.

I must admit I use BE as a short cut to personal experience and/or paying the price for mistakes. (I hope I give as much info as I ask for) And I think this is the best side of BE. Unfortunately I do understand your "EEK" as not all threads stay informative.
BE Spain does seem to be the most helpful of just about all threads on BE, although specific things Italy and France come a close second and third.

I think you have managed to take the good folks of BES into unknown waters, but like the proverbial sponge we will file anything you are good enough to let us have once you get a more definitive answer.

I am sure I could ask my solicitor to find out, but he will take great delight in spending lengthy fone calls from UK to Spain, chatting to all his old contacts and enquiring on the network as to what the answer is.
All at my expense

kr

Last edited by Domino; Jul 21st 2013 at 1:31 am.
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Old Jul 21st 2013, 4:32 am
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Default Re: IVA on articles in magazines?

Originally Posted by Domino
BE Spain does seem to be the most helpful of just about all threads on BE, although specific things Italy and France come a close second and third.

I think you have managed to take the good folks of BES into unknown waters, but like the proverbial sponge we will file anything you are good enough to let us have once you get a more definitive answer.

I am sure I could ask my solicitor to find out, but he will take great delight in spending lengthy fone calls from UK to Spain, chatting to all his old contacts and enquiring on the network as to what the answer is.
All at my expense

kr
Yes it does look like we have to hold up the question mark paddle and say "Nobody knows"!
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