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BUSINESS: international trade invoicing requirements in the UK

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  • Jirka Bolech
    Hi list, Does someone know what invoicing details are required on invoices to be paid by a UK customer to a supplier from the Czech Republic? Where is the VAT
    Message 1 of 7 , May 12 9:56 AM
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      Hi list,



      Does someone know what invoicing details are required on invoices to be paid
      by a UK customer to a supplier from the Czech Republic? Where is the VAT to
      be paid if it's electronic mechanical devices worth hundreds of pounds each?
      Is the customer's tax registration number required on the invoices if the
      customer claims to be a sole trader?



      Any knowledgable comments appreciated...



      Jirka Bolech



      [Non-text portions of this message have been removed]
    • Josef Hlavac
      Jirka, both UK and CR are EU member states, so this might help: http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm Josef
      Message 2 of 7 , May 12 12:09 PM
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        Jirka,

        both UK and CR are EU member states, so this might help:
        http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm

        Josef

        Jirka Bolech wrote:
        > Hi list,
        >
        >
        >
        > Does someone know what invoicing details are required on invoices to be paid
        > by a UK customer to a supplier from the Czech Republic? Where is the VAT to
        > be paid if it's electronic mechanical devices worth hundreds of pounds each?
        > Is the customer's tax registration number required on the invoices if the
        > customer claims to be a sole trader?
        >
        >
        >
        > Any knowledgable comments appreciated...
        >
        >
        >
        > Jirka Bolech
        >
        >
        >
        > [Non-text portions of this message have been removed]
        >
        >
        > ------------------------------------
        >
        > Translators' tricks of the trade:
        > http://czeng.wetpaint.com/
        >
        >
        >
        >
        > Yahoo! Groups Links
        >
        >
        >
      • Jirka Bolech
        Thanks for your help, Josef. It was for a client of mine. It s not yet perfectly clear to him how things work, but one important thing found out about is that
        Message 3 of 7 , May 14 3:52 AM
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          Thanks for your help, Josef. It was for a client of mine. It's not yet
          perfectly clear to him how things work, but one important thing found out
          about is that if another EU country's customer is not a VAT payer, the
          supplier has to charge the VAT to the customer to subsequently pay to the
          supplier's country's government. Sounds fairly logical anyway.

          This client's accountant has mentioned the customer's IBAN to be on
          invoices, which is something I don't understand and haven't had confirmed or
          denied...

          Jirka Bolech
        • Josef Hlavac
          Jirko, ... IBAN usually serves another purpose, not strictly VAT-related: If you reside within the Eurozone and you pay someone in another Eurozone country by
          Message 4 of 7 , May 14 4:17 AM
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            Jirko,

            > This client's accountant has mentioned the customer's IBAN to be on
            > invoices, which is something I don't understand and haven't had confirmed or
            > denied...

            IBAN usually serves another purpose, not strictly VAT-related:

            If you reside within the Eurozone and you pay someone in another
            Eurozone country by bank transfer, then, as long as certain conditions
            are satisfied (one of them is that recipient's IBAN and BIC must be
            specified), the bank may not charge higher fees for this international
            transfer than they would charge for a similar domestic transfer.

            AFAIK this rule applies in the entire EU but banks in non-Eurozone
            countries avoid it by applying the same outrageously high fees to
            domestic transfers in Euro, too.

            Josef

            P.S.: So, if you're getting lots of payments from customers in the EU,
            and you want to save thousands of CZK on bank fees, open an account in a
            German or Austrian or Slovak (after 1/1/2009) bank, whatever your
            closest border is :)
          • Jirka Bolech
            Hi Josef, ... Eurozone country by bank transfer This is obviously not my client s situation. Neither the Czech Republic nor the United Kingdom has adopted the
            Message 5 of 7 , May 14 4:32 AM
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              Hi Josef,

              > If you reside within the Eurozone and you pay someone in another
              Eurozone country by bank transfer

              This is obviously not my client's situation. Neither the Czech Republic nor
              the United Kingdom has adopted the euro for its national currency.

              An IBAN is simply a bank account number in an international format to me.
              What I don't understand is why on earth the customer's IBAN should be
              required on an invoice. The invoice should say where the money is expected
              to be credited but why should it specify where it travels from? There may be
              some sort of misunderstanding in this and I have only bought this infomation
              second hand.

              Jirka Bolech
            • Josef Hlavac
              You mean the company wants the customer (who is going to pay the company) to tell the company his/her IBAN so that the company can put it on the invoice?
              Message 6 of 7 , May 14 4:54 AM
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                You mean the company wants the customer (who is going to pay the
                company) to tell the company his/her IBAN so that the company can put it
                on the invoice? Strange. The only reasons I can think of are automated
                payment identification (which can be done with other means) or a weird
                local law against money laundering...

                J.

                Jirka Bolech wrote:
                > Hi Josef,
                >
                >> If you reside within the Eurozone and you pay someone in another
                > Eurozone country by bank transfer
                >
                > This is obviously not my client's situation. Neither the Czech Republic nor
                > the United Kingdom has adopted the euro for its national currency.
                >
                > An IBAN is simply a bank account number in an international format to me.
                > What I don't understand is why on earth the customer's IBAN should be
                > required on an invoice. The invoice should say where the money is expected
                > to be credited but why should it specify where it travels from? There may be
                > some sort of misunderstanding in this and I have only bought this infomation
                > second hand.
                >
                > Jirka Bolech
                >
                >
                > ------------------------------------
                >
                > Translators' tricks of the trade:
                > http://czeng.wetpaint.com/
                >
                >
                >
                >
                > Yahoo! Groups Links
                >
                >
                >
              • Jirka Bolech
                ... company) to tell the company his/her IBAN so that the company can put it on the invoice? That s right. It could be one of the reasons you say, but I don t
                Message 7 of 7 , May 14 5:07 AM
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                  > You mean the company wants the customer (who is going to pay the
                  company) to tell the company his/her IBAN so that the company can put it
                  on the invoice?

                  That's right. It could be one of the reasons you say, but I don't really
                  know. The client's been dealing with more profound issues in that job, so I
                  may never hear about the final solution...

                  Jirka Bolech
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