European Union VAT
Invoicing to other EU customers is fairly simple; however there are items that must be put on European invoices. If this is done correctly it will save time and money trying to reclaim VAT from other European authorities. Firstly an overview of how VAT works intra-community – i.e. between European Union member states:
When one company in one member state provides goods or services to another company in a different member state, the seller does not add VAT to the invoice but instead zero rates it and registers £0.00 for VAT. It is the job of the buyer to pay the correct local VAT rate for the purchase directly to the authority which handles VAT in their country and this is done through their VAT declaration. For example:
You sell something to someone in Germany for €1,000. On the invoice, the figures would be as follows:
- Sub total: €1,000.0
- VAT (at 0%): €0.00
- Total: €1,000.00
The client declares this to their local VAT authority and, in Germany for example, they would pay the local rate of VAT to them. They would then pay the VAT €160. At the end of the quarter or year, this figure is balanced against a credit for the same amount (and their other inputs and outputs) and they would receive it back, essentially meaning that they never paid it. The way this is done is probably different in each member state, but this does not affect the seller. Buying is another matter.
You need to do the following:
* Make the invoice from Your Company Ltd at the company’s registered address (in the country of origin).
* Below the address, include your company’s registration number and prefix it with a two digit country code (for the UK, this is ‘GB’, i.e. For a company with a UK company number of 01234567 this would be GB-01234567). In Germany these numbers are known as CIF (Company Fiscal Identity) numbers.
* Put the client’s address in and also include their CIF number (this could be the buyer’s national insurance / social security number if they’re an individual or their company’s registration or fiscal number, if they represent a company).
* Itemise the invoice in pounds or Euro, whatever is agreed. It is easier to use Euro for all countries that use this currency and pounds or Euro for any others.
* Include sub-total, then VAT at 0.00 Euro/pounds and the total.
* Your bank details for making the payment (try to avoid cheques if possible as they are often extremely slow to process; and rules on a cheque’s acceptability can vary between countries greatly). For the bank details you should include at least the account name, the name of the bank and an IBAN (International Bank Account Number); see below for bank details. If the client does pay by cheque, make sure it’s in either pounds or Euro and also sign the back of the cheque before sending it to the bank to be paid in. Cheques can take a long time (around 4 weeks) to clear between two EU states.
Bank details for receipt of payments
Theoretically, to make life easier, it is a good idea to have a current accounts in both pounds and Euro. Give the euro account details if the billing and payment is in Euro and the sterling ones if it is in pounds. That way all the figures correspond and accounting is made easier. There are, however, drawbacks of so-called currency accounts, such as not having on-line or telephone banking facilities with them.
To receive the payment you need give your customer your IBAN (International Bank Account Number). The IBAN number is formed by prefixing a international code to your bank sort code and account number. The format is CC-NN-BBBB-XXXXXX-YYYYYYYY, where CC is a country code (in this case GB), NN is a number identifying the bank, BBBB also identifies the bank, XXXXXX is your sort code and YYYYYYYY is your bank account number. Here’s an example:
We phone our bank, Big Banking Corporation, and they give us the IBAN prefix of GB-31-BIGC, meaning.
- Our sort code: 12-34-56
- Our account #: 12345678
- Our IBAN: GR-31-BIGC-123456-12345678
You are obliged to declare to HM Revenue & Customs any monies you receive for payment against EU invoices. This is added to the VAT Return in box 8 – purchases made from other states go in box 9. If you complete this box, HM Revenue & Customs will then send us an EU Sales List, which you will need to complete and send back to them.
Purchases
You should be eligible to pay no VAT in member states, giving your VAT number, but only if the final destination of the goods is the UK. In this case, we would then let HMRC know.
However, the final destination means that if I buy myself a new computer while living in Germany, where it will be used, I cannot claim a zero VAT rating as the final point of sale is Germany and German VAT applies, even though my company is a UK company. I then have no way of getting this money back unless I become self-employed in Germany, in which instance I have to pay social security and even then, it won’t be my company that pays for it, but myself, or rather me as fiscal entity in Germany. To get the money out of my company, I’d have to invoice them for it, which means I’d have to charge German VAT.
For more information on European VAT and how to make a VAT Reclaim of European VAT contact Global Tax Reclaim.
Medical Tourism From this Little Isle
One of the things about my job is you get to know a little bit a loads of things. For instance the phrase “medical tourism” – well I had not come across it before a few short weeks ago. And the definition for you and me – simply going on holiday and combining that with medical treatment.
This as we know is becoming ever more popular. While it gets very expensive in Ireland for dental treatment – people have been travelling to Northern Ireland for a long time to get the expensive procedures. Well this has now expanded, and it seems like we have all become potential medical tourists.
Just book a holiday, catch a plane, lie on the beach and get your teeth done, or a face lift, or whatever you want – really.
But is it that simple? For most the answer appears to be yes, however, how do you arrange who to see? How do you know if they are any good? Who checks this for me?
Well now there are companies filling this need in the market. They act as a third party and arrange everything for you, giving you more security and peace of mind when it is needed. So you can have them book your dentist in Prague, or your laser eye surgery in India, or Poland or almost where-ever you want.
Nursing Home for Me?
When I am old and cranky and I can’t look after myself no more – please stick me in a nursing home. Now don’t get me wrong I don’t want this anytime soon – I think I have a good few years left before being put out to pasture, also some would argue that I may be cranky enough if not old enough. In addition I want one of these places where I have my own front door, living room, kitchen, etc – but with 24 hr help close by – more the type of thing I see in the UK nursing homes.
And rightly you may ask, why the hell am I writing about this just now? Bloody good question, as one would hope that I am 30 or more years away from this.
I spent the weekend in Prague, while there we visited the other half’s parents. A seniors community living would be great for them – the type of thing that I describe for myself – however it seems that the Czech market for nursing homes is not yet as advanced as Ireland or the UK. Now I know there are other that would consider their way is better with older people being looked after by their family – sorry people but if you think this still you are living in wonder land.
All of Europe has become so busy that the life style of having time to look after older parents has changed – both in most marriages work, and work too long and late into the day to have the time to spend with their own children and look after their parents.
I reckon by the time I am ready to be carted off we might have something more like the various options they have in the sates – I so hope so.
Irish Bed & Breakfast
For those who don’t want to stay in a hotel –perhaps you feel they are too impersonal, or maybe, even if you have nothing against hotels personally, you simply want a place that has a bit more character to it– an inn or a bed and breakfast may be a pleasing alternative. Whatever your reasons for choosing to stay at an inn or bed and breakfast, Ireland will be able to offer you a wide selection of these all over the island for you to choose from.
If it is luxury you seek in your accommodation, you may not think that a bed and breakfast can provide it; after all, the idea of a bed and breakfast usually implies a much smaller scale, and fewer amenities as well. However, when one takes into account the fact that a smaller number of guests amounts to more individualized and dedicated service, luxury suddenly seems a reasonable expectation.
People often choose these small, cosy places to increase their privacy as well; if it’s a small, quiet inn with a high standard and great attention to service that you seek, you may want to try one like the Ashfield B&B in County Cork; set in secluded grounds with a private salmon stream and a high standard of furnishing in the guest rooms, the Ashfield is sure to delight.
There are a wide variety of other inns as well, some of them less luxurious but no less functional. If an inn still seems too aloof for you, you may even want to investigate the possibility of booking into a guest house or even a farmhouse; Ireland, the land of a thousand welcomes, has many residents who open their guest rooms to travellers for a small fee, and in return tourists get to see close to hand what life in Ireland is like. If it’s culture you want to soak up, then a stay in a guest house may be just the ticket.
Dublin Airport and delays again…
So here I am stuck in Dublin Airport as he flight is delayed for two hours. It doesn’t happen often thank god, but airports are fairly boring places.
gave us vouchers for food – good… And I get to sit here in Starbucks and chill for a few hours – still it is hard to get passed the bordom. So here I am writing and hoping that no-one reaaly reads this.
Walking in Europe is a new site that I am developing, and much to my surprise it still hasn’t been indexed by the big G after a month – I should really have put a bit more effort into that, so hopefully this post will help the big G find it at last.
Dublin Airport is fairly horrible, in a few hours we will be in Prague – and what a difference there is in the airport. Prague is just so … clean, not so packed, much easier to be in – also I can still smoke there. Yeah one day I might get around to not doing that anymore.
So hope some of this made some sense – I have only had one xanex so far – yeah hate flying also…
Have a good weekend.
Walking in Ireland
Carrauntoohil (Corran Tuathail in Irish), Co Kerry which forms part of MacGillycuddy’s Reeks stands at 1039 meters high and is not just the tallest mountain in Munster, but also the tallest mountain in Ireland. The views from top of this mountain are spectacular, looking out over Hags Glen and Co. Kerry. This is not the safest mountain in Ireland to climb. Most people climb the mountain via the Devil’s Ladder which can only be described as dangerous. The Devil’s Ladder is made up of loose rocks and rises at a steep angle. Once you reach the top of the Devil’s Ladder, there is a further stretch to climb to the peak of the mountain which is marked by a cross.
Connaught
Mweelrea (Cnoc Maol Réidh, bald grey hill in Irish) is the tallest mountain in Connaught, standing just over 800 meters. It is situated beside the coastline of Mayo which is famous for its beauty. From the top of the mountain you look over Clew Bay and the numerous Islands that litter the seascape. Often described as one of the great walks in Ireland, Mweelrea is a difficult mountain that asks many questions of those who climb it.
Ulster
Slieve Donard meaning Sliabh Domengard in Irish or Donard Mountain, is the tallest mountain in Ulster, peaking at 850 meters. Standing next to the picturesque seaside town of Newcastle, Slieve Donard is an interesting climb, not only because of the spectacular views it offers up to those who make the effort, but because of the climb itself. The trek up the mountain is marked out with a rocky path, including steps up the mountain itself. When you reach the saddle, turn left and follow the Mourne Wall to the top of the mountain. This wall can provide great shelter from wind and rain on a cold day.
Leinster
Lugnaquilla is the highest mountain in Leinster, and many say is the most difficult of all the mountains in Ireland. From the base and Murphy’s Glen of the Imall Pub, you will gain over 700 meters to the top. The Mountain is covered in grass and a vague path worn into the mountain side marks the path to the top. It is not unusual to see wild deer here, so keep an eye out. The mountain offers up spectacular views over County Kildare after you get passed the first and toughest incline. If you are lucky enough to climb Lugnaquilla on a cloudless days, be prepared for one of the most spectacular vistas in Ireland.
