| Pages in topic: [1 2] > | Do Americans need a VAT number? Thread poster: Anna Fitzgerald
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Hello,
I am an American translator trying to build my client base. Recently, I have been filling out a lot of agency web forms for their databases. They often ask for VAT numbers. Do American translators need one if working with a European company? Is there any equivalent in the US?
Thanks for any help.
anna
| | | | XX789 (X) 
Netherlands
Local time: 08:54
English to Dutch
+ ...
Hi Anna,
My American clients tell me there is no such thing as a VAT number in the States. Within the EU it is very important to have one for clients, as EU regulations require you to state the client's VAT number on your invoice if you do not want to charge VAT to them.
There's probably also a good reason for wanting to know the VAT number of translators.
In principle, the VAT number is the number under which a legal entity is registered at the local tax o... See more Hi Anna,
My American clients tell me there is no such thing as a VAT number in the States. Within the EU it is very important to have one for clients, as EU regulations require you to state the client's VAT number on your invoice if you do not want to charge VAT to them.
There's probably also a good reason for wanting to know the VAT number of translators.
In principle, the VAT number is the number under which a legal entity is registered at the local tax office.
If possible, simply state there is no such thing as a VAT number in the States. Good luck!
[Edited at 2005-05-05 07:19] ▲ Collapse
| | | | | If you live in the EU, that is | May 5, 2005 |
You do not need a VAT number if you live in the States. You do need a VAT number if you live in the EU, regardless of your nationality.
Good luck,
Steven
| | | | Williamson
United Kingdom
Local time: 07:54
Flemish to English
+ ...
| The US does not have a VAT-system | May 5, 2005 |
As an American you do not need a VAT-number. VAT does not exist in the US. Correct me if I am mistaken: In the US, you have sales-tax which differs from state to state.
If you send a translation to Europe, you export a service.
On that export there are no taxes to be levied.What I do not know is whether on the other end of the line import duties and VAT are to be paid. With import of goods this is the case, but with import of services ????
If a translator based in Europ... See more As an American you do not need a VAT-number. VAT does not exist in the US. Correct me if I am mistaken: In the US, you have sales-tax which differs from state to state.
If you send a translation to Europe, you export a service.
On that export there are no taxes to be levied.What I do not know is whether on the other end of the line import duties and VAT are to be paid. With import of goods this is the case, but with import of services ????
If a translator based in Europe sends a translation to the US, it is pure export of a service. The same rule applies.
[Edited at 2005-05-05 12:16] ▲ Collapse
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| No sales tax on translations | May 5, 2005 |
Williamson wrote:
As an American you do not need a VAT-number. VAT does not exist in the US. Correct me if I am mistaken: In the US, you have sales-tax which differs from state to state.
If you send a translation to Europe, you export a service.
On that export there are no taxes to be levied.What I do not know is whether on the other end of the line import duties and VAT are to be paid. With import of goods this is the case, but with import of services ????
If a translator based in Europe sends a translation to the US, it is pure export of a service. The same rule applies.
[Edited at 2005-05-05 12:16]
You're right. Sales tax does vary from state to state (and Oregon doesn't charge any). US translators don't need to charge sales tax on translations, and we don't have/need VAT nos.
| | | | | No VAT for Americans | May 5, 2005 |
As a US American, my invoices for European clients state VAT: not applicable.
But I do pay taxes to the US government. I report business income and pay only the self-employment tax because income under $80,000 from abroad is exempt from income taxes. The self-employment tax is credited to social security taxes - so I'll get it all back in a few years.
| | | | sarahl (X)
Local time: 23:54
English to French
+ ...
| VAT/Sales tax in the US | May 5, 2005 |
there is no sales tax on "intangible goods" in the US, which includes services.
| | | | Anna Fitzgerald
France
Local time: 08:54
Member
French to English
TOPIC STARTER | Thanks, everybody! | May 5, 2005 |
I appreciate your help on this matter. No VAT for me; one less thing to worry about.
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RobinB
United States
Local time: 01:54
German to English
Anna,
Just to clarify the issue: if you're domiciled in the US and sell translations to EU-domiciled clients, no tax appears on your invoice. However, the EU clients must themselves add the relevant VAT to their VAT bill (import VAT), while at the same time deducting it as input VAT. A bureaucratic procedure that you needn't bother yourself about in the slightest.
Robin
| | | | | too good to be true? | May 20, 2005 |
Kim Metzger wrote:
As a US American, my invoices for European clients state VAT: not applicable.
But I do pay taxes to the US government. I report business income and pay only the self-employment tax because income under $80,000 from abroad is exempt from income taxes. The self-employment tax is credited to social security taxes - so I'll get it all back in a few years.
I'm pretty sure the $80,000 exemption applies only to US citizens residing abroad. If you reside in the US, you also pay income tax on that first $80,000.
| | | | Heike Reagan
United States
Local time: 02:54
German to English
| Thank you Lothar, | May 25, 2005 |
Lothar Kneifel wrote: Kim Metzger wrote:
As a US American, my invoices for European clients state VAT: not applicable.
But I do pay taxes to the US government. I report business income and pay only the self-employment tax because income under $80,000 from abroad is exempt from income taxes. The self-employment tax is credited to social security taxes - so I'll get it all back in a few years.
I'm pretty sure the $80,000 exemption applies only to US citizens residing abroad. If you reside in the US, you also pay income tax on that first $80,000.
I believe it's actually everything over 300 USD/year or so. My tax advisor (here in Colorado) said I need to give my foreign clients my TIN or SSN so they can sent me a statement/W2/something at the end of the year if income from that one client is over 300 USD. Wether anyone actually does this or not doesn't matter, but they need to have the info to do this, should they want to comply with US law. Or something like that.
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I believe it's actually everything over 300 USD/year or so. My tax advisor (here in Colorado) said I need to give my foreign clients my TIN or SSN so they can sent me a statement/W2/something at the end of the year if income from that one client is over 300 USD. Wether anyone actually does this or not doesn't matter, but they need to have the info to do this, should they want to comply with US law. Or something like that.
... See more I believe it's actually everything over 300 USD/year or so. My tax advisor (here in Colorado) said I need to give my foreign clients my TIN or SSN so they can sent me a statement/W2/something at the end of the year if income from that one client is over 300 USD. Wether anyone actually does this or not doesn't matter, but they need to have the info to do this, should they want to comply with US law. Or something like that.
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This form is called 1099 and currently it is required only if you have provided services for over $600.00 for the entire year. See http://www.irs.gov/pub/irs-pdf/i1099msc.pdf ▲ Collapse
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Anya Lester (X)
United States
Local time: 02:54
English to Russian
+ ...
| Services are actually taxed, if you provide services by fixing tangible goods. | Dec 10, 2009 |
xxxsarahl wrote:
there is no sales tax on "intangible goods" in the US, which includes services.
| | | | Sheila Wilson
Spain
Local time: 07:54
Member (2007)
English
+ ...
| Where are you, Anna? | Dec 10, 2009 |
I'm a little confused here as your profile says you are in France, probably in Montpellier, just a few km from where I'm writing this.
Still, you know where you are VAT-wise now, even if you don't know physically!
| | | | Woodstock (X)
Germany
Local time: 08:54
German to English
+ ...
| As an American living in the EU and | Dec 10, 2009 |
working for clients in EU countries - you DO need a VAT number. If you work only with French clients, you may not - you'd have to check with the authorities there. At least from your avatar and what you stated you reside in France and will have to pay taxes there.
Somehow with so many people answering and talking about expats and US taxes, I hope you did get that core message: You do need a VAT No. if you work with EU-based clients.
Example: I'm an American living in Ge... See more working for clients in EU countries - you DO need a VAT number. If you work only with French clients, you may not - you'd have to check with the authorities there. At least from your avatar and what you stated you reside in France and will have to pay taxes there.
Somehow with so many people answering and talking about expats and US taxes, I hope you did get that core message: You do need a VAT No. if you work with EU-based clients.
Example: I'm an American living in Germany. Since my clients are almost all in Germany, I don't need the VAT No. for them because I charge them the VAT, but I do need it if I have clients in Austria, Denmark, etc., so they don't have to pay me the German 19% MwSt/VAT. Otherwise you are liable for the missing taxes and that could come back to bite you some day.
[Edited at 2009-12-10 18:05 GMT]
[Edited at 2009-12-10 18:05 GMT] ▲ Collapse
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