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IVA (VAT) registration and Business Registration

IVA (VAT) registration and Business Registration

Old May 10th 2010, 10:48 am
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Default IVA (VAT) registration and Business Registration

Hi. I could do with a little mentoring;-)
I've moved to Spain and am carrying on with my crafts business just as I did in the UK. Because I had one phenomenal year a couple of years back I was VAT reg'd in the UK so I'm used to collecting VAT. How do I get my new IVA number? I've already been to Hacienda and signed up as a Spanish Tax payer and they've given me a website address to pay my taxes. But I have to try to shortcut the process of understanding this stuff because I'm a one-woman business with an unemployed husband trying to carry on trading while having to finish the build on my own house! (The boom didn't last, and the £ dropped in the middle of a building contract. Got my builders paid off but now struggling!;-)
If anyone has a little better understanding than I've managed. And has a little time to give. I'd really appreciate an idiots guide to IVA and business registration. What do I need and where do I go?
Any help would be greatly appreciated.
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Old May 10th 2010, 11:31 am
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Default Re: IVA (VAT) registration and Business Registration

I guess the first question is do you want to be self-employed or be a limited company? They are the 2 options. They say it is better off being self-employed unless you earn over 35k-45k a year.

If you go for the self-employed option then you need to sign up as an autonomo, then pay 250 euros per month social security. Then you need to deal with the IVA and income tax every month. I am looking into this myself at the moment, this is a good link that shows the process you need to go through:

http://www.navegandoxlared.es/?p=45

It is in Spanish, if you cant understand this then you will be better off hiring a gestor to do the process for you.

Best of luck!
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Old May 10th 2010, 11:42 am
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Default Re: IVA (VAT) registration and Business Registration

I agree with Cricketman. Unless you anticipate earning over 35K ish then it is best to be autonoma.

I am autonoma and the process is very simple. However, if you can't speak Spanish then an extremely simple process will turn into an almost impossible one making a gestor an unfortunate necessity (and extra cost).

You've already signed up at the Hacienda. That's one tick in the box. Your 'VAT Reg No' is the same as your NIE, so you already have that too.

Have you signed on at the Seguridad Social too? You need to do that within 6 weeks of registering at the Hacienda. Then you are ready to go.

Every three months you have to do your 'declaraciones trimestrales'. You will have two - one for IVA and one for IRPF. If you have a digital certificate on your computer you won't even need to leave home to do them. They are both just one simple side of A4 with very little to fill in. (Unless you can't speak Spanish - see comment above!).

At the end of the fiscal year you do your annual IVA declaration, and in May-ish you do your IRPF return for the previous year. And that's it.

The first year might be a big learning curve, but once you've got the hang of it your tax commitments as an autonoma are very simple to do.

Good luck!
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Old May 10th 2010, 1:53 pm
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Default Re: IVA (VAT) registration and Business Registration

Every business pays IVA there is no lower limit “cut-off” to which you do not have the tax.
I would ask a professional Gestor for advice. They will do all the paperwork to set you accounts etc.
You have to remember this is not the U.K. and the business rules are very different and most would say overtly complicated.
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Old May 10th 2010, 4:35 pm
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by Casa Santo Estevo
Every business pays IVA there is no lower limit “cut-off” to which you do not have the tax.
I would ask a professional Gestor for advice. They will do all the paperwork to set you accounts etc.
You have to remember this is not the U.K. and the business rules are very different and most would say overtly complicated.
Not every business has to pay IVA. I don't!!
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Old May 10th 2010, 4:49 pm
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Default Re: IVA (VAT) registration and Business Registration

well tell us ALL how you do that then.
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Old May 10th 2010, 5:02 pm
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by Veleta
Not every business has to pay IVA. I don't!!
...please explain how because I thought that there was no way of (legally) opting out!
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Old May 10th 2010, 5:14 pm
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by snikpoh
...please explain how because I thought that there was no way of (legally) opting out!
It depends what service you provide - and to which country. Plus (I think) certain demographics are exempt, but I'm not sure about that.

The IVA rules are very complex.
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Old May 10th 2010, 6:02 pm
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Thumbs up Re: IVA (VAT) registration and Business Registration

Originally Posted by Veleta
I agree with Cricketman. Unless you anticipate earning over 35K ish then it is best to be autonoma.

I am autonoma and the process is very simple. However, if you can't speak Spanish then an extremely simple process will turn into an almost impossible one making a gestor an unfortunate necessity (and extra cost).

You've already signed up at the Hacienda. That's one tick in the box. Your 'VAT Reg No' is the same as your NIE, so you already have that too.

Have you signed on at the Seguridad Social too? You need to do that within 6 weeks of registering at the Hacienda. Then you are ready to go.

Every three months you have to do your 'declaraciones trimestrales'. You will have two - one for IVA and one for IRPF. If you have a digital certificate on your computer you won't even need to leave home to do them. They are both just one simple side of A4 with very little to fill in. (Unless you can't speak Spanish - see comment above!).

At the end of the fiscal year you do your annual IVA declaration, and in May-ish you do your IRPF return for the previous year. And that's it.

The first year might be a big learning curve, but once you've got the hang of it your tax commitments as an autonoma are very simple to do.

Good luck!
Thanks Cricketman. And thanks Valeta. The important answer...which I'm really very pleased to receive is the one about the IVA number being the same as the NIE. That means I can put that on my invoices right now.
Do I prefix it with an ES?
Yes, I do speak Spanish but not Spanish legalese;-) and Yes I've already signed up for and paid my first months Social security. For me it's 271euros because I'm in my 50s.
So, it seems I am going in the right direction. It's nice to have this confirmed. It quells the 'temor'. I agree it's a learning curve. But this forum has really helped me. And I hope in my turn I've shared/can share :-)
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Old May 10th 2010, 9:20 pm
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by Casa Santo Estevo
well tell us ALL how you do that then.
As Cricketman says, certain sectors are exempt from IVA.

If I remember correctly IVA is either 16%, 7%, 4% or 0% depending on the sector. I am exempt.
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Old May 10th 2010, 9:21 pm
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by snikpoh
...please explain how because I thought that there was no way of (legally) opting out!
I didn't 'opt' out of paying IVA. I have no choice - I cannot pay it (even if I wanted to) as my sector is exempt.
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Old May 10th 2010, 9:23 pm
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by angiescarr
Thanks Cricketman. And thanks Valeta. The important answer...which I'm really very pleased to receive is the one about the IVA number being the same as the NIE. That means I can put that on my invoices right now.
Do I prefix it with an ES?
Yes, I do speak Spanish but not Spanish legalese;-) and Yes I've already signed up for and paid my first months Social security. For me it's 271euros because I'm in my 50s.
So, it seems I am going in the right direction. It's nice to have this confirmed. It quells the 'temor'. I agree it's a learning curve. But this forum has really helped me. And I hope in my turn I've shared/can share :-)
No, there is no ES prefix. Your IVA number is identical to your NIE.

You've done all you need to get going. Your next step will be the declaraciones trimestrales. One for the Jan/Feb/March period if you were de alta during that time, or the next one will be for the Apr/May/Jun period.
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Old May 10th 2010, 11:07 pm
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by angiescarr
Thanks Cricketman. And thanks Valeta. The important answer...which I'm really very pleased to receive is the one about the IVA number being the same as the NIE. That means I can put that on my invoices right now.
Do I prefix it with an ES?
Yes, I do speak Spanish but not Spanish legalese;-) and Yes I've already signed up for and paid my first months Social security. For me it's 271euros because I'm in my 50s.
So, it seems I am going in the right direction. It's nice to have this confirmed. It quells the 'temor'. I agree it's a learning curve. But this forum has really helped me. And I hope in my turn I've shared/can share :-)

If you are already paying SS then how have you set yourself up? SL or Autonomo?

Originally Posted by Veleta
As Cricketman says, certain sectors are exempt from IVA.

If I remember correctly IVA is either 16%, 7%, 4% or 0% depending on the sector. I am exempt.
So you sell fertilizer then?

http://www.sri.gov.ec/sri/documentos...en--000774.pdf

But all seriousness I think you still have to set up your accounts to cope with dealing with the IVA don't you?
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Old May 11th 2010, 2:14 am
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Default Re: IVA (VAT) registration and Business Registration

[QUOTE=Casa Santo Estevo;8556527]If you are already paying SS then how have you set yourself up? SL or Autonomo?
Hi I wonder what you mean by 'set yourself up' This is the bit that worries me. Are there things I should do apart from going to Hacienda. Yes, I've said I'm 'an Autonomo'. But is there another process for registering this? or is it OK just to ...I think they call it 'alta' yourself at Hacienda as I have done? I'm assuming that my tax level is at 16% at the moment. I'm a craftswoman. My husband tried to tell me I supply art services. But no, The truth is I just make stuff and sell it:-)
One other thing that I need to know upfront of starting to charge my customers/declare my IVA, is,....... Do I do the same as in England with my trade customers from other EU countries, and customers from the US etc. Take their VAT/IVA numbers etc where appropriate and not charge them VAT? Sorry to be so dense. But I never was any good at the admin side of my business even in England. Not really a very developed part of my 'strange' artists brain;-)
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Old May 11th 2010, 6:57 am
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Default Re: IVA (VAT) registration and Business Registration

Originally Posted by Casa Santo Estevo
So you sell fertilizer then?

http://www.sri.gov.ec/sri/documentos...en--000774.pdf

But all seriousness I think you still have to set up your accounts to cope with dealing with the IVA don't you?
What do you mean exactly by 'set up your accounts'? When I did my alta I ticked the little box on the 037 that said I was in a sector that is exempt. On my facturas I put IVA - 0%. There is nothing else to do.....no declaracion trimestral and no declaracion at the end of the year.
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