Tax question. how to account for postages?
Dec 29th 2010, 3:43 pm
#1
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Joined: Dec 2009
Location: Aracena area Huelva Spain
Posts: 1,631
Tax question. how to account for postages?
I've just taken my tax stuff into the accountant (Spanish) and she says we have to account for the IVA part of the postage separately. It doesn't appear separately on our facturas from the post office.
I'm not sure how to do this as it's at a different level from normal IVA, and we only pass the actual cost on. Does anyone have experience they can share. I'm not sure even my accountant has much experience of internet businesses who post (rather than using Couriers)!
I'm not sure how to do this as it's at a different level from normal IVA, and we only pass the actual cost on. Does anyone have experience they can share. I'm not sure even my accountant has much experience of internet businesses who post (rather than using Couriers)!
Dec 30th 2010, 4:17 pm
#2
Joined: May 2006
Location: Galicia
Posts: 3,137
Re: Tax question. how to account for postages?
I think it is going to be difficult to answer.
I am not going to pretend I am an expert on this.
But maybe this helps in some way?
I would assume you are talking about sending packages to all of EU, but not the Canaries, Ceuta or Melilla as residents do not have to pay for IVA for articles purchased online. Outside the EU I think you are considered the end user for IVA payments.
If you are selling to a business in another country you can check if they have a international valid VAT number here.
If they do then you do not have to pass on the VAT.
If they don’t then pass on the VAT. (You should also have an international VAT number not to pass on the VAT).
I know I am about to talk about something that is not an answer to your question directly; but this interweb thing is not easy. We list the property on some listing websites. We have found that purchasing services online a bit of a nightmare as not everyone knows what is meant to happen. We are now talking to the local tax office about what IVA we have to pay or not pay. even they are not 100 certain how this should be done.
I am not going to pretend I am an expert on this.
But maybe this helps in some way?
I would assume you are talking about sending packages to all of EU, but not the Canaries, Ceuta or Melilla as residents do not have to pay for IVA for articles purchased online. Outside the EU I think you are considered the end user for IVA payments.
If you are selling to a business in another country you can check if they have a international valid VAT number here.
If they do then you do not have to pass on the VAT.
If they don’t then pass on the VAT. (You should also have an international VAT number not to pass on the VAT).
I know I am about to talk about something that is not an answer to your question directly; but this interweb thing is not easy. We list the property on some listing websites. We have found that purchasing services online a bit of a nightmare as not everyone knows what is meant to happen. We are now talking to the local tax office about what IVA we have to pay or not pay. even they are not 100 certain how this should be done.
Dec 30th 2010, 9:11 pm
#3
BE Forum Addict
Thread Starter
Joined: Dec 2009
Location: Aracena area Huelva Spain
Posts: 1,631
Re: Tax question. how to account for postages?
I think it is going to be difficult to answer.
I am not going to pretend I am an expert on this.
But maybe this helps in some way?
I would assume you are talking about sending packages to all of EU, but not the Canaries, Ceuta or Melilla as residents do not have to pay for IVA for articles purchased online. Outside the EU I think you are considered the end user for IVA payments.
If you are selling to a business in another country you can check if they have a international valid VAT number here.
If they do then you do not have to pass on the VAT.
If they don’t then pass on the VAT. (You should also have an international VAT number not to pass on the VAT).
I know I am about to talk about something that is not an answer to your question directly; but this interweb thing is not easy. We list the property on some listing websites. We have found that purchasing services online a bit of a nightmare as not everyone knows what is meant to happen. We are now talking to the local tax office about what IVA we have to pay or not pay. even they are not 100 certain how this should be done.
I am not going to pretend I am an expert on this.
But maybe this helps in some way?
I would assume you are talking about sending packages to all of EU, but not the Canaries, Ceuta or Melilla as residents do not have to pay for IVA for articles purchased online. Outside the EU I think you are considered the end user for IVA payments.
If you are selling to a business in another country you can check if they have a international valid VAT number here.
If they do then you do not have to pass on the VAT.
If they don’t then pass on the VAT. (You should also have an international VAT number not to pass on the VAT).
I know I am about to talk about something that is not an answer to your question directly; but this interweb thing is not easy. We list the property on some listing websites. We have found that purchasing services online a bit of a nightmare as not everyone knows what is meant to happen. We are now talking to the local tax office about what IVA we have to pay or not pay. even they are not 100 certain how this should be done.
I didn't know about the Ceuta Melilla and Canaries thing either. The rest of the IVA thing I am getting to grips with but this postage thing has me totally flabbergasted. I don't want to pass on a greater postage charge than the ludicrous amount which it already costs. I don't think my customers would wear it!
At first it seemed that my accountant was asking me to pass on an extra 18% IVA for the postage element. But I challenged that and it seems I just have to find a way of accounting for the seperate elements of the charge. SOOOO complicated!
