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intracommunity VAT number

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  • Charlie Stanford Translations
    Does anyone know anything about this.... I have a DIC because I pay tax in the Czech Republic but no DIC DPH or whatever it is called because I am still below
    Message 1 of 7 , Sep 10, 2012
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      Does anyone know anything about this.... I have a DIC because I pay tax in the Czech Republic but no DIC DPH or whatever it is called because I am still below the threshold for VAT. An agency who might put me on their books have just been asking me about my tax status. I gave them my DIC and they say that that is not enough because:

      "all transactions within the EU must indicate a valid intracommunity VAT number, validated in the VIES system. This is something compulsory since 1st January 2010. Except for the UK, this is something compulsory for all the EU countries.In the case one translator does not have this number, he/she may send me a proof from his/her local tax authority where it indicates that he/she is not obligated to have that intracommunity VAT number. Also, as far as I know from other collaborators within the Czech Republic, having this number is free of charge, but you need that your tax authority validates it or includes it in the VIES system, something they only do upon your request. (This is not something that works this way in CR, as it works the same way in Spain, Italy and France, at least)."

      No agency has ever made any noise about this before. Maybe they are right though.... Does anyone know?
      Charlie

      [Non-text portions of this message have been removed]
    • (no author)
      Hi Charlie, There s IC (Identifikacni cislo) - you have that if you are registered in CR Then there s DIC (Danove identifikacni cislo) - which is a bit
      Message 2 of 7 , Sep 10, 2012
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        Hi Charlie,

        There's IC (Identifikacni cislo) - you have that if you are registered
        in CR

        Then there's DIC (Danove identifikacni cislo) - which is a bit
        misleading because it's in fact the VAT reg number, not sure if you can
        still have one without being VAT registered..

        I'm not sure what the current status for self-employed people (OSVC)
        is, it used to be that everyone had IC assigned by financak and
        everyone had a DIC, mine used to be my birth certificate number at some
        point... I know for sure this format is not valid anymore

        Now if you are a VAT payer, your DIC is usually CZ plus IC, that's the
        intracommunity format she's refering to...

        you can check yours (or anybody else's) at:
        http://ec.europa.eu/taxation_customs/vies/vatResponse.html

        Your best bet is to call the lady who's in charge of your returns at
        your financak (or anyone else there for that matter), they will tell
        you if you have a DIC and what it is... BUT don't tell them you're
        already invoicing to EU, because:

        Unless I'm mistaken - there was a detailed debate here at some point
        and others will be able to correct me (I am VAT registered so I didn't
        have to question it in this case) - as soon as you invoice even EUR 1
        to a company within the EU and outside of the Czech Rep, you have to be
        VAT registered - you don't add any VAT on the invoice because that's
        not done within EU, but your invoice must have a valid VAT number (DIC)
        in the above format AND (which is a real pain), you have to report each
        and every such EU invoice (including the client's VAT in correct
        format) on a separate form attached to your VAT return (usually
        quarterly)... apparently someone/some computer somewhere matches and
        checks those:(?

        I'm not sure the rule is as strict in other countries, or maybe they
        are just taking it easy, because it is usually very difficult to get
        the correct VAT number from agencies and direct clients in Western
        Europe - they don't have a clue and have to ask their head accountant,
        then they send you five versions before they get it right (the
        electronic version of the said form won't accept an incorrect VAT no,
        so you have to check at the link above or your accountant will be after
        you..)

        So to sum up, yes, AFAIK you need a VAT no/DIC in the EU format to be
        able to invoice abroad as a CZ subject, I THINK you also need to be VAT
        registered (perhaps without actually filling for/paying VAT if you're
        below the threshold, you better check that)... BUT any client West of
        us doesn't seem to care much, only clients from ex-Commie countries
        that are now in the EU - might be one of these cases of us CE and EE
        countries being stricter than EU just because we love restrictions :)

        And of course if this is the case and you get audited, you better make
        sure you don't have any income from the EU on your regular account
        without all this


        M


        ------ Original Message ------
        From: "Charlie Stanford Translations"
        <charliestanfordtranslations@...>
        To: Czechlist@yahoogroups.com
        Sent: 10.9.2012 12:38:55
        Subject: [Czechlist] intracommunity VAT number
        > Does anyone know anything about this.... I have a DIC because I pay
        >tax in the Czech Republic but no DIC DPH or whatever it is called
        >because I am still below the threshold for VAT. An agency who might
        >put me on their books have just been asking me about my tax status. I
        >gave them my DIC and they say that that is not enough because:
        >
        >"all transactions within the EU must indicate a valid intracommunity
        >VAT number, validated in the VIES system. This is something compulsory
        >since 1st January 2010. Except for the UK, this is something
        >compulsory for all the EU countries.In the case one translator does
        >not have this number, he/she may send me a proof from his/her local
        >tax authority where it indicates that he/she is not obligated to have
        >that intracommunity VAT number. Also, as far as I know from other
        >collaborators within the Czech Republic, having this number is free of
        >charge, but you need that your tax authority validates it or includes
        >it in the VIES system, something they only do upon your request. (This
        >is not something that works this way in CR, as it works the same way
        >in Spain, Italy and France, at least)."
        >
        >No agency has ever made any noise about this before. Maybe they are
        >right though.... Does anyone know?
        >Charlie
        >
        >[Non-text portions of this message have been removed]
        >
        >


        [Non-text portions of this message have been removed]
      • Mihail Mihaylov
        Message 3 of 7 , Sep 10, 2012
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          <<BUT any client West of us doesn't seem to care much...>>

          ...until the first financial audit.

          I'd be very carefull with any EU client if they cannot provide a valid VAT number (that is, present and verifiable in the VIES).

          Mihail


          ----- Original Message -----
          From: Matej Klimes
          To: Czechlist@yahoogroups.com
          Sent: Monday, September 10, 2012 2:48 PM
          Subject: Re: [Czechlist] intracommunity VAT number



          Hi Charlie,

          There's IC (Identifikacni cislo) - you have that if you are registered
          in CR

          Then there's DIC (Danove identifikacni cislo) - which is a bit
          misleading because it's in fact the VAT reg number, not sure if you can
          still have one without being VAT registered..

          I'm not sure what the current status for self-employed people (OSVC)
          is, it used to be that everyone had IC assigned by financak and
          everyone had a DIC, mine used to be my birth certificate number at some
          point... I know for sure this format is not valid anymore

          Now if you are a VAT payer, your DIC is usually CZ plus IC, that's the
          intracommunity format she's refering to...

          you can check yours (or anybody else's) at:
          http://ec.europa.eu/taxation_customs/vies/vatResponse.html

          Your best bet is to call the lady who's in charge of your returns at
          your financak (or anyone else there for that matter), they will tell
          you if you have a DIC and what it is... BUT don't tell them you're
          already invoicing to EU, because:

          Unless I'm mistaken - there was a detailed debate here at some point
          and others will be able to correct me (I am VAT registered so I didn't
          have to question it in this case) - as soon as you invoice even EUR 1
          to a company within the EU and outside of the Czech Rep, you have to be
          VAT registered - you don't add any VAT on the invoice because that's
          not done within EU, but your invoice must have a valid VAT number (DIC)
          in the above format AND (which is a real pain), you have to report each
          and every such EU invoice (including the client's VAT in correct
          format) on a separate form attached to your VAT return (usually
          quarterly)... apparently someone/some computer somewhere matches and
          checks those:(?

          I'm not sure the rule is as strict in other countries, or maybe they
          are just taking it easy, because it is usually very difficult to get
          the correct VAT number from agencies and direct clients in Western
          Europe - they don't have a clue and have to ask their head accountant,
          then they send you five versions before they get it right (the
          electronic version of the said form won't accept an incorrect VAT no,
          so you have to check at the link above or your accountant will be after
          you..)

          So to sum up, yes, AFAIK you need a VAT no/DIC in the EU format to be
          able to invoice abroad as a CZ subject, I THINK you also need to be VAT
          registered (perhaps without actually filling for/paying VAT if you're
          below the threshold, you better check that)... BUT any client West of
          us doesn't seem to care much, only clients from ex-Commie countries
          that are now in the EU - might be one of these cases of us CE and EE
          countries being stricter than EU just because we love restrictions :)

          And of course if this is the case and you get audited, you better make
          sure you don't have any income from the EU on your regular account
          without all this


          M


          ------ Original Message ------
          From: "Charlie Stanford Translations"
          <charliestanfordtranslations@...>
          To: Czechlist@yahoogroups.com
          Sent: 10.9.2012 12:38:55
          Subject: [Czechlist] intracommunity VAT number
          > Does anyone know anything about this.... I have a DIC because I pay
          >tax in the Czech Republic but no DIC DPH or whatever it is called
          >because I am still below the threshold for VAT. An agency who might
          >put me on their books have just been asking me about my tax status. I
          >gave them my DIC and they say that that is not enough because:
          >
          >"all transactions within the EU must indicate a valid intracommunity
          >VAT number, validated in the VIES system. This is something compulsory
          >since 1st January 2010. Except for the UK, this is something
          >compulsory for all the EU countries.In the case one translator does
          >not have this number, he/she may send me a proof from his/her local
          >tax authority where it indicates that he/she is not obligated to have
          >that intracommunity VAT number. Also, as far as I know from other
          >collaborators within the Czech Republic, having this number is free of
          >charge, but you need that your tax authority validates it or includes
          >it in the VIES system, something they only do upon your request. (This
          >is not something that works this way in CR, as it works the same way
          >in Spain, Italy and France, at least)."
          >
          >No agency has ever made any noise about this before. Maybe they are
          >right though.... Does anyone know?
          >Charlie
          >
          >[Non-text portions of this message have been removed]
          >
          >

          [Non-text portions of this message have been removed]





          [Non-text portions of this message have been removed]
        • Tomas Mosler
          I have a DIC because I pay tax in the Czech Republic but no DIC DPH or whatever it is called because I am still below the threshold for VAT. - If you are a
          Message 4 of 7 , Sep 10, 2012
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            "I have a DIC because I pay tax in the Czech Republic but no DIC DPH or whatever it is called because I am still below the threshold for VAT."

            - If you are a Czech tax resident and supply services within EU (outside Czechia), you _have to_ be registered for VAT no matter what the threshold is. Since January 1, 2010.

            DIC for VAT payers is the same as for VAT non-payers, but you have to let the local financial authority (financni urad) know that you are a VAT payer.

            Something like this:
            http://www.mfcr.cz/sys/cds/scripts/tiskopisy/tiskopisy-pdf2007/5104-A_1.pdf

            Plenty of reading on the topic here for example:
            http://www.proz.com/forum/czech/156242-dph_nov%C3%A1_povinnost_pro_p%C5%99ekladatele_v_r%C3%A1mci_eu.html


            "BUT any client West of us doesn't seem to care much"

            - Well "interestingly" enough I had a check (not in person though) few months ago from a local FU to confirm that I received payments from one EU company in 2010. Apparently this was based on that company request, or the fin. authority on their side. Then they can obviously also double-check the relevant VAT assesments (or the absence thereof) if the business was done between two EU states.

            Tomas
          • Martin Janda
            Sconded. Once you send your first invoice to another EU country, you are required to apply for the VAT payer status at your local Tax Office and then you
            Message 5 of 7 , Sep 10, 2012
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              Sconded. Once you send your first invoice to another EU country, you are
              required to apply for the VAT payer status at your local Tax Office and
              then you include your DIC to your invoices.

              Being VAT payer is free but it involves quite some redtape and extra
              paperwork.

              HTH
              Martin



              Dne 10.9.2012 13:48, Matej Klimes napsal(a):
              >
              > Hi Charlie,
              >
              > There's IC (Identifikacni cislo) - you have that if you are registered
              > in CR
              >
              > Then there's DIC (Danove identifikacni cislo) - which is a bit
              > misleading because it's in fact the VAT reg number, not sure if you can
              > still have one without being VAT registered..
              >
              > I'm not sure what the current status for self-employed people (OSVC)
              > is, it used to be that everyone had IC assigned by financak and
              > everyone had a DIC, mine used to be my birth certificate number at some
              > point... I know for sure this format is not valid anymore
              >
              > Now if you are a VAT payer, your DIC is usually CZ plus IC, that's the
              > intracommunity format she's refering to...
              >
              > you can check yours (or anybody else's) at:
              > http://ec.europa.eu/taxation_customs/vies/vatResponse.html
              >
              > Your best bet is to call the lady who's in charge of your returns at
              > your financak (or anyone else there for that matter), they will tell
              > you if you have a DIC and what it is... BUT don't tell them you're
              > already invoicing to EU, because:
              >
              > Unless I'm mistaken - there was a detailed debate here at some point
              > and others will be able to correct me (I am VAT registered so I didn't
              > have to question it in this case) - as soon as you invoice even EUR 1
              > to a company within the EU and outside of the Czech Rep, you have to be
              > VAT registered - you don't add any VAT on the invoice because that's
              > not done within EU, but your invoice must have a valid VAT number (DIC)
              > in the above format AND (which is a real pain), you have to report each
              > and every such EU invoice (including the client's VAT in correct
              > format) on a separate form attached to your VAT return (usually
              > quarterly)... apparently someone/some computer somewhere matches and
              > checks those:(?
              >
              > I'm not sure the rule is as strict in other countries, or maybe they
              > are just taking it easy, because it is usually very difficult to get
              > the correct VAT number from agencies and direct clients in Western
              > Europe - they don't have a clue and have to ask their head accountant,
              > then they send you five versions before they get it right (the
              > electronic version of the said form won't accept an incorrect VAT no,
              > so you have to check at the link above or your accountant will be after
              > you..)
              >
              > So to sum up, yes, AFAIK you need a VAT no/DIC in the EU format to be
              > able to invoice abroad as a CZ subject, I THINK you also need to be VAT
              > registered (perhaps without actually filling for/paying VAT if you're
              > below the threshold, you better check that)... BUT any client West of
              > us doesn't seem to care much, only clients from ex-Commie countries
              > that are now in the EU - might be one of these cases of us CE and EE
              > countries being stricter than EU just because we love restrictions :)
              >
              > And of course if this is the case and you get audited, you better make
              > sure you don't have any income from the EU on your regular account
              > without all this
              >
              >
              > M
              >
              >
              > ------ Original Message ------
              > From: "Charlie Stanford Translations"
              > <charliestanfordtranslations@...
              > <mailto:charliestanfordtranslations%40gmail.com>>
              > To: Czechlist@yahoogroups.com <mailto:Czechlist%40yahoogroups.com>
              > Sent: 10.9.2012 12:38:55
              > Subject: [Czechlist] intracommunity VAT number
              > > Does anyone know anything about this.... I have a DIC because I pay
              > >tax in the Czech Republic but no DIC DPH or whatever it is called
              > >because I am still below the threshold for VAT. An agency who might
              > >put me on their books have just been asking me about my tax status. I
              > >gave them my DIC and they say that that is not enough because:
              > >
              > >"all transactions within the EU must indicate a valid intracommunity
              > >VAT number, validated in the VIES system. This is something compulsory
              > >since 1st January 2010. Except for the UK, this is something
              > >compulsory for all the EU countries.In the case one translator does
              > >not have this number, he/she may send me a proof from his/her local
              > >tax authority where it indicates that he/she is not obligated to have
              > >that intracommunity VAT number. Also, as far as I know from other
              > >collaborators within the Czech Republic, having this number is free of
              > >charge, but you need that your tax authority validates it or includes
              > >it in the VIES system, something they only do upon your request. (This
              > >is not something that works this way in CR, as it works the same way
              > >in Spain, Italy and France, at least)."
              > >
              > >No agency has ever made any noise about this before. Maybe they are
              > >right though.... Does anyone know?
              > >Charlie
              > >
              > >[Non-text portions of this message have been removed]
              > >
              > >
              >
              > [Non-text portions of this message have been removed]
              >
              >
            • Tomas Mosler
              ... And you can also deduct the VAT on things needed for business. Charlie, if you eventually register as a VAT payer, you can apply for a refund of VAT for
              Message 6 of 7 , Sep 10, 2012
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                > Being VAT payer is free but it involves quite some redtape and extra
                > paperwork.

                And you can also deduct the VAT on things needed for business.

                Charlie, if you eventually register as a VAT payer, you can apply for a refund of VAT for the period of one year before the date of registration, given you have the relevant invoices.

                Tomas
              • Jan Culka
                Hi, somebody here said that all the invoices concerned must be submitted to the financial office. The law says that their list must be submitted only. They can
                Message 7 of 7 , Sep 11, 2012
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                  Hi,
                  somebody here said that all the invoices concerned must be submitted to the financial office.
                  The law says that their list must be submitted only.
                  They can ask for individual invoices in case of unclarities...
                  Honza



                  ----- Original Message -----
                  From: Tomas Mosler
                  To: Czechlist@yahoogroups.com
                  Sent: Monday, September 10, 2012 7:09 PM
                  Subject: [Czechlist] Re: intracommunity VAT number



                  > Being VAT payer is free but it involves quite some redtape and extra
                  > paperwork.

                  And you can also deduct the VAT on things needed for business.

                  Charlie, if you eventually register as a VAT payer, you can apply for a refund of VAT for the period of one year before the date of registration, given you have the relevant invoices.

                  Tomas





                  [Non-text portions of this message have been removed]
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