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Agency requesting certificate of residence, otherwise deducting taxes from invoice
Thread poster: Christian Schaller
Michael Wetzel
Michael Wetzel  Identity Verified
Germany
Local time: 14:55
German to English
income tax and social-security fees Jul 14, 2016

In Germany, for example, the tax office withholds income tax, public health insurance fees, public retirement insurance fees, etc. from employees' pay checks. Like Rosa has written, some countries also require companies hiring freelancers to withhold these taxes and fees and turn them over to the government.

International freelancers are not (or at least usually are not) subject to withholding and that is why these companies want or possibly need a certificate of residence to docum
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In Germany, for example, the tax office withholds income tax, public health insurance fees, public retirement insurance fees, etc. from employees' pay checks. Like Rosa has written, some countries also require companies hiring freelancers to withhold these taxes and fees and turn them over to the government.

International freelancers are not (or at least usually are not) subject to withholding and that is why these companies want or possibly need a certificate of residence to document why they did not withhold anything.
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Parrot
Parrot  Identity Verified
Spain
Local time: 14:55
Spanish to English
+ ...
Personal income tax Jul 14, 2016

Christian Schaller wrote:

Lincoln Hui wrote:

They're not imposing taxes on goods/services from another country, they're imposing tax on goods/services on their own country unless it can be proven that they're from abroad.


What kind of taxes would this be though other than VAT? And that's what a VAT ID is for, at least within the EU.

[Edited at 2016-07-14 06:03 GMT]


Many countries require income tax withholding from freelancers under contract. If you pay your own social security, that's usually just your concern.

However, as I understand it, VIES should account for tax residence.


 
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Agency requesting certificate of residence, otherwise deducting taxes from invoice







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