IVA in Spain - un gestor told me I am exempt? Is this correct ? Thread poster: Nathalie Coutelle
|
|---|
Nathalie Coutelle 
United Kingdom
Local time: 07:52
Member (2008)
English to French
+ ...
Hi,
I'm getting registered as autonomo in Spain and I am l currently looking for a "gestor".
Here is the message of one gestor who says I am exempted. Is this correct ?
"La actividad de traducción cuyo epígrafe del impuesto de Actividades Económicas es el 774 , está exenta de iva según el artículo 26 de la ley de Iva en España cuyo texto indico Artículo 26: Los servicios profesionales, incluidos aquéllos cuya contraprestación consista en derechos... See more Hi,
I'm getting registered as autonomo in Spain and I am l currently looking for a "gestor".
Here is the message of one gestor who says I am exempted. Is this correct ?
"La actividad de traducción cuyo epígrafe del impuesto de Actividades Económicas es el 774 , está exenta de iva según el artículo 26 de la ley de Iva en España cuyo texto indico Artículo 26: Los servicios profesionales, incluidos aquéllos cuya contraprestación consista en derechos de autor, prestados por artistas plásticos, escritores, colaboradores literarios, gráficos y fotográficos de periódicos y revistas, compositores musicales, autores de obras teatrales y de argumento, adaptación, guión y diálogos de las obras audiovisuales, traductores y adaptadores.
Si la traducción se realiza para un cliente extranjero existe una regla de localización del iva, pero como ya la califican como operación no sujeta, tampoco tiene IVA."
Thanks ▲ Collapse
| | | | | Your gestor is wrong... | Jan 12, 2016 |
If you read Article 26 of the Ley del IVA carefully, you will notice that it refers to those translators whose income comes from copyright only. Since we translators regularly translate other types of materials and not only work that is paid by copyright, most of us are NOT exempt of IVA.
... See more If you read Article 26 of the Ley del IVA carefully, you will notice that it refers to those translators whose income comes from copyright only. Since we translators regularly translate other types of materials and not only work that is paid by copyright, most of us are NOT exempt of IVA.
This is explained in more detail here:
http://www.ace-traductores.org/faq#pregunta%205
The key question, are you sure you will only be compensated by means of copyright, i.e. literature, audiovisual materials, drama, or do you translate other stuff as well (manuals, contracts, business documents, tourist information, etc. etc.)? ▲ Collapse
| | | | Araceli Arola
Spain
Local time: 08:52
Member (2015)
English to Spanish
+ ...
| Copyright material vs. the rest | Jan 12, 2016 |
As Tomás already tells you, only copyright material is IVA exempted. But this circumstance is not the usual one for most translators. User manuals, technical documentation, software, hardware, websites, medical, chemical, machinery, travel, etc. etc. etc. is NOT copyright work, so you'll have to issue invoices with IVA.
| | | | Nathalie Coutelle
United Kingdom
Local time: 07:52
Member (2008)
English to French
+ ...
TOPIC STARTER
Thanks a lot for the quick reply!
Much appreciated
| | |
|
|
|
I can't read Spanish, so I only have a vague idea of what the "gestor" wrote, but there is a related issue in Germany.
Goods and services are generally taxed at 19% VAT in Germany, but the sale of the right to use copyrighted material (right to publish it in a book, post it on the Internet, broadcast it, publicly display it, etc.) is taxed at 7%.
The division is made on a project-by-project basis and not translator-by-translator basis. That is, if someone normally translates ... See more I can't read Spanish, so I only have a vague idea of what the "gestor" wrote, but there is a related issue in Germany.
Goods and services are generally taxed at 19% VAT in Germany, but the sale of the right to use copyrighted material (right to publish it in a book, post it on the Internet, broadcast it, publicly display it, etc.) is taxed at 7%.
The division is made on a project-by-project basis and not translator-by-translator basis. That is, if someone normally translates birth certificates, but then translates a novel (even teen vampire trash published through Amazon), then they ought to charge 7%. (Although the tax offices have been reported to tolerate it if people simply always charge 19%.)
The division is also based not on subject fields or media but on whether or not the given text provides (a very minimal amount of) leeway in terms of the translator's selection of how to word the translated version. It is also relevant whether the right to publish the material really is what is being purchased (if I translated someone's memoirs for a relative to read, the project would not be about selling copyright, but it would be if the relative were going to publish those memoirs).
Almost all material in tourist brochures would be protected by copyright, most website texts, etc. It has nothing to do with artistic value or merit, but with whether or not it would be legal for someone to simply take that text, copy it and paste it somewhere else (if this is impermissible, then it is because of copyright).
Translation is a gray area for copyright law anywhere, so I think these kinds of questions can only be answered on a country-by-country basis in terms of the specific wordings of the laws there and how the courts there have interpreted them.
The relevant decisions of German courts are by no means consistent, but looking at the law and the majority of those decisions, it actually seems difficult here to produce a translation that is NOT subject to copyright. ▲ Collapse
| | | | | On a project-by-project basis | Jan 12, 2016 |
Michael Wetzel wrote:
The division is made on a project-by-project basis and not translator-by-translator basis. That is, if someone normally translates birth certificates, but then translates a novel (even teen vampire trash published through Amazon), then they ought to charge 7%. (Although the tax offices have been reported to tolerate it if people simply always charge 19%.)
Yes, the same happens here. For instance, when I translate academic documents, they are exempt of VAT and the invoice is issues with VAT.
| | | | neilmac
Spain
Local time: 08:52
Spanish to English
+ ...
It depends who you are invoicing. There are differences between individual clients and companies. Another question is educational and research institutions. As far as I know, academic research works and original literature are VAT free in Spain. I have several university and research institute clients and bill them all without VAT, although they do pay my IRPF (Income Tax). If in doubt, I would go to my local Hacienda office and ask them (I find the website pretty useless)...
PS: I ... See more It depends who you are invoicing. There are differences between individual clients and companies. Another question is educational and research institutions. As far as I know, academic research works and original literature are VAT free in Spain. I have several university and research institute clients and bill them all without VAT, although they do pay my IRPF (Income Tax). If in doubt, I would go to my local Hacienda office and ask them (I find the website pretty useless)...
PS: I bill my regular clients (companies) with IVA and IRPF. The companies pay the latter directly to the tax authority (or at least they are supposed to) and send me a certificate of withholdings (certificado de retenciones) at the end of the year. I have to pay the IVA billed each quarter myself (next week! aargh!), which can be annoying if the clients take longer than three months to pay, which isn't unheard of in Spain.
[Edited at 2016-01-12 10:45 GMT] ▲ Collapse
| | | | Sheila Wilson
Spain
Local time: 07:52
Member (2007)
English
+ ...
| I'm glad I don't have the only incompetent accountant in Spain | Jan 12, 2016 |
Nathalie Coutelle wrote:
Here is the message of one gestor who says I am exempted. Is this correct ?
Mine is about to become my ex-accountant . I imagine that one needs to be given a wide berth too.
Of course, you could set yourself up in the Canary Islands - we don't have VAT here at all (we're outside of its scope, in a similar but not identical way to the Channel Islands), and our 7% IGIC only gets charged to clients in the Canary Islands. I haven't had one of those yet.
| | |
|
|
|
| We are trying to move there | Jan 12, 2016 |
Sheila Wilson wrote:
Of course, you could set yourself up in the Canary Islands - we don't have VAT here at all (we're outside of its scope, in a similar but not identical way to the Channel Islands), and our 7% IGIC only gets charged to clients in the Canary Islands. I haven't had one of those yet.
As I already am Spain resident, Ibiza seems to be more expensive (a lot more) so we are collecting information for moving to the Canary Islands.
[Edited at 2016-01-12 12:14 GMT]
| | | | Sheila Wilson
Spain
Local time: 07:52
Member (2007)
English
+ ...
| Better winters too | Jan 12, 2016 |
Angie Garbarino wrote: As I already am Spain resident, Ibiza seems to be more expensive (a lot more) so we are collecting information for moving to the Canary Islands.
Better winter weather here I expect, as well.
| | | | Jo Macdonald
Spain
Local time: 08:52
Italian to English
+ ...
| Operaciones intracomunitarias | Jan 12, 2016 |
Hi Nathalie,
I've been living and working in Spain for the last 6 years.
Here's how VAT works in the EEC.
If you and your client have VAT numbers registered for intercommunity VAT operations (operaciones intracomunitarias) and your client is based outside Spain there is no VAT to apply to the invoice and none to pay to the tax man.
Add this to your (foreign) invoices
Factura No Sujeta a IVA Art.69 Ley 37/1992
Not subject to VAT in accordance w... See more Hi Nathalie,
I've been living and working in Spain for the last 6 years.
Here's how VAT works in the EEC.
If you and your client have VAT numbers registered for intercommunity VAT operations (operaciones intracomunitarias) and your client is based outside Spain there is no VAT to apply to the invoice and none to pay to the tax man.
Add this to your (foreign) invoices
Factura No Sujeta a IVA Art.69 Ley 37/1992
Not subject to VAT in accordance with Art. 69 of Act 37/1992
For clients in Spain or anyone outside Spain without the intercommunity VAT number you add VAT to your invoices, the client pays you the Vat and you then pay it to the tax authority.
Your accountant may charge a little to keep the intercommunity VAT operations register listing your foreign clients but it is well worth it if most of your clients are outside Spain.
It makes a big difference to me. When based in Italy I was paying loads of Vat, now in Spain I get a Vat refund at the end of the year.
▲ Collapse
| | | | | Speaking of which... | Jan 12, 2016 |
Sheila Wilson wrote:
...Of course, you could set yourself up in the Canary Islands...
I don't want to spoil Sheila's suggestion, but there may be a dark side to Eden: http://www.tendencias21.net/Catastroficos-tsunamis-podrian-derivarse-del-derrumbe-de-un-volcan-de-La-Palma_a397.html
We chose a place in Spain away from Cumbre Vieja because of tidal waves, away from the mountains because of landslides, away from crust fractures because of earthquakes, away from volcanoes because of eruptions, away from towns because of terror attacks, away from forests because of fires and away from major plants because of industrial accidents.
I thought all areas were covered except meteorites, but no: a month ago, I ploughed my car into a ditch and a roadsign thanks to an oil spill on the road, in a stunt-worthy sequence with 2 other cars that ended up on the roof. Nobody was hurt in the process, so meteorites shouldn't be a problem either.
When I relocated knowing no Andalu' cerra'o and very little Spanish, I had my autonomo/ NIE/ empadronamiento/ public health/ car import/ what-not process done by a gestor/asesor and he got me VAT-registered. I like the VAT refund too. I have various forms with stamps, but I don't know precisely what's been done. I only remember it went rather smoothly since I just had to pay the service.
Philippe
| | |
|
|
|
Sheila Wilson
Spain
Local time: 07:52
Member (2007)
English
+ ...
| Ha, that old chestnut! | Jan 12, 2016 |
Philippe Etienne wrote:
We chose a place in Spain away from Cumbre Vieja because of tidal waves
Mega-scaremongering spread by the BBC, of all organisations, who should know better. It's been disproved as a real threat, although the flank of the volcano may one day (when???) collapse. I hope you had your fingers firmly crossed when you wrote about meteorites, Philip .
My asesor sorted my autonomo registration but committed me to paying the top whack of voluntary insurances, he took six months to get my husband onto the public health system, and we took the car import process out of his hands and did it ourselves. We did the NIEs ourselves too. The great thing about being a translator is that you have, by necessity, great research skills. Asesors clearly don't need to have them. You can muddle by in a foreign language if you know what you're aiming for, whereas you can speak eloquently about rubbish and no progress at all will be made.
| | | | Parrot
Spain
Local time: 08:52
Spanish to English
+ ...
| If (conditional) | Jan 13, 2016 |
If you ever accept a contract based on publishing matrices and copyright, the gestor is correct. You will need a copy of the contract to prove it in case you're asked. Those kinds of contracts are used by publishing companies.
If, as do most of us, your rates are based on volume, it's a one-off service subject to VAT.
Sounds like you'd be the gestor's first translator. And it sounds like a big learning curve for him.
PS: I also do academic jobs. Deusto univ... See more If you ever accept a contract based on publishing matrices and copyright, the gestor is correct. You will need a copy of the contract to prove it in case you're asked. Those kinds of contracts are used by publishing companies.
If, as do most of us, your rates are based on volume, it's a one-off service subject to VAT.
Sounds like you'd be the gestor's first translator. And it sounds like a big learning curve for him.
PS: I also do academic jobs. Deusto university, the UAB and the CSIC insist on VAT, so I don't know the VAT-free kind of job neilmac is referring to. Some private researchers pay out of their own pockets and defray expenses (no IRPF, meaning I declare that on a separate form, as with private individuals), but they still need a legal invoice for the expense account. ▲ Collapse
| | | | To report site rules violations or get help, contact a site moderator: You can also contact site staff by submitting a support request » IVA in Spain - un gestor told me I am exempt? Is this correct ? | Anycount & Translation Office 3000 | Translation Office 3000
Translation Office 3000 is an advanced accounting tool for freelance translators and small agencies. TO3000 easily and seamlessly integrates with the business life of professional freelance translators.
More info » |
| | CafeTran Espresso | You've never met a CAT tool this clever!
Translate faster & easier, using a sophisticated CAT tool built by a translator / developer.
Accept jobs from clients who use Trados, MemoQ, Wordfast & major CAT tools.
Download and start using CafeTran Espresso -- for free
Buy now! » |
|
| | | | X Sign in to your ProZ.com account... | | | | | |
Login to reply/comment 
Translation news in Spain
