Invoicing your clients (each country has its own invoicing policy, let's gather them all here!) Thread poster: Pierre Normand
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Hi everyone,
I’m working on a tool to facilitate invoicing (and many other things) for freelance translators. In order to make it as easy as possible (and to be sure such a tool can be developped correctly and make it easy to use) I would like to ask for your help 😊.
I’m gathering all the useful information about the way you might invoice your clients. As you might know, each country has its own invoicing policy.
I’ll start with my own country...... See more Hi everyone,
I’m working on a tool to facilitate invoicing (and many other things) for freelance translators. In order to make it as easy as possible (and to be sure such a tool can be developped correctly and make it easy to use) I would like to ask for your help 😊.
I’m gathering all the useful information about the way you might invoice your clients. As you might know, each country has its own invoicing policy.
I’ll start with my own country...
Belgium
Keep in mind this guideline: « How, as a freelance translator, do you invoice your clients (all type and from any kind of country)? What are all the possibilities/exceptions?».
If I do not succeed developing my tool, this thread might be helpful for all the translators on ProZ who might face issue when invoicing a new client 😊.
I am (my company) based in: Belgium
1)
My client is based in: Belgium
VAT policy: 21% (I make more than 25.000€ per year)
My invoice will be:
100€ VAT excl + 21€ VAT = 121€ Total
2)
My client is based in: Belgium
VAT policy: 0% (I make less than 25.000€ per year – tax-free regime)
My invoice will be:
100€ VAT excl + 0€ VAT = 100€ Total
3)
My client is based in: inside and outside European Union (but not Belgium)
VAT policy: 0%
My invoice will be:
100€ VAT excl + 0€ VAT = 100€ Total
Do not hesitate to correct this information (for Belgium) or to add an exception!
You are living/working in another country? Let's share your way of invoicing  .
May I ask you to keep the « framework » (if possible) so I’ll be easy to compare and read the information ?
Thanks a lot for your help on this topic !
Have a nice day,
Pierre ▲ Collapse
| | | | Michael Newton 
United States
Local time: 04:12
Japanese to English
+ ...
| Invoicing policy | May 11, 2022 |
Rather, each company has its own invoicing policy.
| | | | | Talking about country invoicing policy rather than company invoicing policy | May 11, 2022 |
Michael Newton wrote:
Rather, each company has its own invoicing policy.
Hi Michael,
You are totally right. each company has it's own invoicing policy but I guess you are talking about: is a PO mandatory to appear on your invoice, what are the payment terms, should there be any reference on it, when you could/should invoice, should it be a hard copy or a PDF, on which platform you should upload your invoice etc... This kind of mandatory information is already ready in the system I'm working on.
Here I'm more talking about your country "rules". Is it clearer?
If not may I ask you to give me an example for your comment?
Thank you
Pierre
[Modifié le 2022-05-11 08:35 GMT]
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Have users customize their own invoicing templates instead.
Invoicing info, VAT rates and company VAT/registration numbers are linked to customers, so a properly devised customer info table is enough.
As a user of Translation Office 3000, I have two templates: one in EN, one in FR, and I invoice the whole world, except the Holy See and North Korea, in any currency.
My client is based in: some part of the world
VAT policy: 0 or 21%
Invoice amo... See more Have users customize their own invoicing templates instead.
Invoicing info, VAT rates and company VAT/registration numbers are linked to customers, so a properly devised customer info table is enough.
As a user of Translation Office 3000, I have two templates: one in EN, one in FR, and I invoice the whole world, except the Holy See and North Korea, in any currency.
My client is based in: some part of the world
VAT policy: 0 or 21%
Invoice amount:
The machine works it out.
I believe some countries don't even have any kind of value-added tax, or have other tax names.
In the UE, besides UE/non-UE invoicing, the VAT rate varies according to the legal status of the recipient: private person or company. It also varies depending on whether the service is performed in the invoice-originating country or the invoice-receiving country.
Enter each rate in you customer database and forget it.
Philippe ▲ Collapse
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| My invoicing policy | May 11, 2022 |
I issue my own invoices. I have been using the same old Excel template (I have one for each long-standing customer) and I always prepare each invoice immediately after completing a job so that nothing is forgotten. My long-standing customers are invoiced at the end of each month; for new clients invoices are sent out together with the translation (until hopefully they move to the other group).
Since 2014 I’m required by the Portuguese tax authorities to use a certified billing so... See more I issue my own invoices. I have been using the same old Excel template (I have one for each long-standing customer) and I always prepare each invoice immediately after completing a job so that nothing is forgotten. My long-standing customers are invoiced at the end of each month; for new clients invoices are sent out together with the translation (until hopefully they move to the other group).
Since 2014 I’m required by the Portuguese tax authorities to use a certified billing software called SAFT (Standard Audit File for Tax Purposes) in order to be legally compliant.
By the way, VAT in Portugal is 23%... ▲ Collapse
| | | | Samuel Murray
Netherlands
Local time: 10:12
Member (2006)
English to Afrikaans
+ ...
Pierre Normand wrote:
I’ll start with my own country...
Netherlands
I am (my company) based in: Netherlands
1)
My client is based in: Netherlands
VAT policy: 21% (I am a business)
My invoice will be:
100€ VAT excl + 21€ VAT = 121€ Total
(and the client's VAT number must be on the invoice, if he has one)
2)
My client is based in: EU, but not the Netherlands, and has a VAT number
VAT policy: shifted
My invoice will be:
100€ VAT excl + mention the word "shifted" = 100€ Total
(and the client's VAT number must be on the invoice)
3)
My client is based in: outside European Union, and is a business
VAT policy: none
My invoice will be:
100€ VAT excl + mention the words "no VAT" = 100€ Total
4)
My client is based in: anywhere and is not a business (or if in the EU, does not have a VAT number)
VAT policy: 21% (I am a business)
My invoice will be:
100€ VAT excl + 21€ VAT = 121€ Total
5)
My client is based in: not the Netherlands, and has VAT exemption in their country
VAT policy: none
My invoice will be:
100€ VAT excl + mention of the VAT exemption = 100€ Total
(None of my clients are like this)
6)
My client is based in: not the Netherlands, and "translation" is a 0% VAT service in their country
VAT policy: 0%
My invoice will be:
100€ VAT excl + 0% VAT + mention of why 0% VAT is charged = 100€ Total
(None of my clients are like this)
None of my clients qualify for 0% VAT, so I never charge 0% VAT. I often charge no VAT (e.g. for business clients outside the EU), or I shift the VAT (clients in the EU with a VAT number), but I don't charge 0% VAT.
[Edited at 2022-05-11 20:01 GMT]
| | | | | semi automated | May 12, 2022 |
Philippe Etienne wrote:
Have users customize their own invoicing templates instead.
Invoicing info, VAT rates and company VAT/registration numbers are linked to customers, so a properly devised customer info table is enough.
As a user of Translation Office 3000, I have two templates: one in EN, one in FR, and I invoice the whole world, except the Holy See and North Korea, in any currency.
My client is based in: some part of the world
VAT policy: 0 or 21%
Invoice amount:
The machine works it out.
I believe some countries don't even have any kind of value-added tax, or have other tax names.
In the UE, besides UE/non-UE invoicing, the VAT rate varies according to the legal status of the recipient: private person or company. It also varies depending on whether the service is performed in the invoice-originating country or the invoice-receiving country.
Enter each rate in you customer database and forget it.
Philippe
Hi Philippe,
Thank you for your input. I totally understand what you mean and your solution works but our goal is to go one step further.
We want to semi automate the invoicing process (regarding the VAT). Some fresh freelancer don't always know everything about all the rules around the world so if we can provide them such information when they invoice that would be really helpfull for them. You see what I mean?
We want to preset a maximum of information so our user will be able to focus on his main work: translation (and not spending time on the phone with his accountant with such questions)
Is there any particularity in Spain I should know? Different VAT %? Other?
Thanks for your help Philippe!
Cheers,
Pierre
| | | | | Thanks for SAFT information | May 12, 2022 |
Teresa Borges wrote:
I issue my own invoices. I have been using the same old Excel template (I have one for each long-standing customer) and I always prepare each invoice immediately after completing a job so that nothing is forgotten. My long-standing customers are invoiced at the end of each month; for new clients invoices are sent out together with the translation (until hopefully they move to the other group).
Since 2014 I’m required by the Portuguese tax authorities to use a certified billing software called SAFT (Standard Audit File for Tax Purposes) in order to be legally compliant.
By the way, VAT in Portugal is 23%...
Hello Teresa,
Thank you for the information about SAFT software. What I could read about this software is that this is more for the accountant part of your business right? Your accountant needs to use this, not you (unless you are doing your own whole accounting, which is remarquable!)
The Accounting SAF-T PT file must contain the following information:
1. Account code table (GeneralLedgerAccounts);
2. Customer table;
3. Supplier table;
5. Tax table (TaxTable);
Accounting movements (GeneralLedgerEntries);
4. Receipt of issued documents (Pagos), if required.
So this means that our tool does not intervene in this step. Anyway, we will be sure that an export will be available for all those information so you can import them in SAFT and ease the life of your accountant (or yours ).
VAT is 23%, noted
Cheers,
Pierre
[Modifié le 2022-05-12 08:50 GMT]
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| That's a complete answer :) | May 12, 2022 |
Samuel Murray wrote: Pierre Normand wrote:
I’ll start with my own country... Netherlands...
Thank you Samuel for this complete reply
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I'm not sure this is the best place to be asking about how to invoice *correctly*, as nobody ever agrees on anything here, but in the UK it's very simple.
Your invoice must include the following information:
- Sole trader: your name and address and the amount you're billing
- Company: company name, company number, address of registered office and the amount you're billing
If you are registered for VAT, it must also state your VAT number and the amount... See more I'm not sure this is the best place to be asking about how to invoice *correctly*, as nobody ever agrees on anything here, but in the UK it's very simple.
Your invoice must include the following information:
- Sole trader: your name and address and the amount you're billing
- Company: company name, company number, address of registered office and the amount you're billing
If you are registered for VAT, it must also state your VAT number and the amount of VAT you're charging
VAT registration is optional if sales are below £80k. VAT is currently 20% for UK sales but changes regularly. No VAT outside UK.
PS And the date of the bill!
[Edited at 2022-05-12 15:19 GMT] ▲ Collapse
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Pierre Normand wrote:
...Is there any particularity in Spain I should know? Different VAT %? Other?
As regards VAT in detail, I'm fully unqualified. I vaguely know what's relevant to my business, and I e-mail my invoices and paperwork to an accountant each month. Other VAT rates than the max. rate of 21% might apply in Spain, perhaps for court interpreting or certified translation.
My customers are businesses only, and I am registered as a natural person (autónomo), not a legal entity/company. As such, invoicing is almost simple:
1)
My client is: a company/natural person registered in Spain
VAT policy: 21% (not sure about any threshold)
Income tax "withholding" (Retención IRPF*): -15% (likely something else for companies, unsure about any threshold)
My invoice will be:
100€ VAT excl + 21€ VAT - 15€ IRPF = 106€ Total
2)
My client is: a company registered outside of Spain (EU/non-EU)
VAT policy: 0% (or "shifted", as Samuel points out)
My invoice will be:
100€ VAT excl + 0€ VAT = 100€ Total
...
The list may go on and on depending on customer type, service type, my own legal form and what-not. I've only ever been in one of the two situations above.
Philippe
*Impuesto sobre la renta de las personas físicas
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I don’t do my accounting. I hire someone to do it and they deserve every € I pay them. Regarding SAF-T, there are two types (both required by the AT – The Portuguese tax authority):
1. Invoicing SAF-T: it is a simplified file containing all the invoices issued each month. I send it monthly to my accountant who then sends to the AT.
2. SAF-T Accounting: it is a complete file, based on the accounting data of the company. It is exported and sent yearly by my accounta... See more I don’t do my accounting. I hire someone to do it and they deserve every € I pay them. Regarding SAF-T, there are two types (both required by the AT – The Portuguese tax authority):
1. Invoicing SAF-T: it is a simplified file containing all the invoices issued each month. I send it monthly to my accountant who then sends to the AT.
2. SAF-T Accounting: it is a complete file, based on the accounting data of the company. It is exported and sent yearly by my accountant to the Tax Authority or whenever it is requested. ▲ Collapse
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