Tax issue exporting to Spain

Carer

I've just had a Spanish company order a lot of items for delivery in a few weeks (we are manufacturing company).

We are not yet Vat registered and I have told them this. However they are now asking for our "tax Operation Number for the European Union (NOI) for European transactions"

Does anyone have a clue what this is? Googling is giving me nothing at all.

It's a big order and a professional company so I don't want to look silly by asking them what they mean.

pooch

If there is something you do not understand, then there is a much greater chance of looking silly if you don't ask them for clarification.

It would appear to me that it is they that have already failed to understand something you have said.

It's good to talk ...

System

http://mbharris.co.uk/articles/finance/eurovat/ may help. It sounds like they do not understand that you are not VAT registered.

martindow

Looking at this (in Spanish). It seems that without this number they will be unable to reclaim the VAT properly. They will nominally charge themselves VAT but then credit it back as UK VAT registered businesses do for European imports.

http://www.datisa.es/blog/category/noi-numero-de-operador-intracomunitario/

I am also not VAT registered but have an EORI number issued by HMRC that I use when importing. Maybe that is the UK equivalent of NOI and what they need to keep their paperwork straight.

https://www.gov.uk/eori-supporting-guidance

pooch

martindow wrote: »

Looking at this (in Spanish). It seems that without this number they will be unable to reclaim the VAT properly. They will nominally charge themselves VAT but then credit it back as UK VAT registered businesses do for European imports.

http://www.datisa.es/blog/category/noi-numero-de-operador-intracomunitario/

The OP is not registered for VAT, so there is no VAT to pay/reclaim

martindow wrote: »

I am also not VAT registered but have an EORI number issued by HMRC that I use when importing. Maybe that is the UK equivalent of NOI and what they need to keep their paperwork straight.

https://www.gov.uk/eori-supporting-guidance

Most of that appears to relate to VAT registered businesses.
However, I agree there is a mention about those that are not VAT registered

Importers - if you are importing goods from outside the EU

Exporters - if you are exporting goods to outside of the EU

martindow

pooch wrote: »

The OP is not registered for VAT, so there is no VAT to pay/reclaim

No, but the OP's buyer has to account for Spanish VAT and they seem to need this number to avoid losing out.

paddyrg

martindow wrote: »

No, but the OP's buyer has to account for Spanish VAT and they seem to need this number to avoid losing out.

I'm confused, why is there Spanish VAT if there is no VAT? They have nothing to reclaim, surely? So not losing out!

Carer

Thanks all. We're still no further forward on this. I have asked them to clarify exactly what they need.

The accountant, the tax advice helpline and the corporation tax people have no idea what they mean either.

Stumped.

martindow

If you are VAT registered in the UK and buy from an EC supplier no VAT is charged in the supplier's country. When you fill in a VAT return here, you have to enter acquisition tax which is the current UK rate (normally 20%) of the value of the goods. This is claimed back in another box on the return so nothing is actually paid. However, you need to keep records and check the validity of the supplier's VAT number. If there is a discrepancy when HMRC do a check the claim back can be disallowed.

I imagine the system is similar in Spain, so the OP's buyers have got to have whatever the Spanish equivalent of HMRC requires.

That I why I suggested the OP asks HMRC whether an EORI number, which acts like a VAT number even though you are not registered for VAT, is what is needed.

pooch

Carer wrote: »

Thanks all. We're still no further forward on this. I have asked them to clarify exactly what they need....

Any response yet?

Or is it due mañana?

:cool:

Carer

Nothing from them as yet but going to apply for the EORI number that Martindow suggested and hope that sorts it.