Thursday, 19th September 2019
BUSINESS SERVICES Article
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How to account an invoice from another EU country

How to account an invoice from another EU country

It is important to make sure that your Intra-European invoices are properly declared

Nearly every business which operates online nowadays receives an invoice from Google or Facebook. These companies invoice their customers from their respective branches in Ireland. If you have a business account with these internet companies they will issue intracommunity invoices.

What do you need to do with them?
It is essential to account them and report them correctly. In order to issue or receive intra-community invoices businesses must be registered with the European traders’ database with an international VAT number.

Once registered (ROI – Registro de Operadores Intracomunitarios) invoices without VAT can be received. See below how to account for it in Quipu.

Problems arise on receipt of one of these invoices without the registration because the other party would have declared it as an international transaction and the Tax Agency will get to know we have had this transaction. Hacienda will require the due report of intracommunity operations or the possibility of a fine is almost certain.


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What to do then?
If you occasionally receive an invoice without IVA but have no intention of trading within the European market you should request for the VAT to be added at source so that the other party will not report it as an intracommunity transaction and you can then offset the total of invoice in your accounts as an expense.

In doing so, Quipu will offset the total off the income tax but nothing off the IVA.

To summarise, it is very important to account for and report your invoices in accordance with your registration to avoid triggering an unpleasant letter.



Limit Consulting - Tax Consultants from Sotogrande to Manilva, Estepona San Pedro, Marbella
Business, Legal, Accounts, Calle Miguel Delibes, 9, 29692
+34 951 087 937
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Limit Consulting - Tax Consultants from Sotogrande to Manilva, Estepona San Pedro, Marbella

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