Found 21st Jan 2010
Bit of a specialist question.

If a person goes to work for a foreign company, based in an EU country, for 6 weeks, as a freelance, does the worker have to be VAT registered? The worker would not earn enough to meet the registration for VAT threshold in this financial year.

The foreign employer has asked for the potential employee's VAT number: is the simple answer "I don't have one. I don't charge it, you don't have to pay it on my salary" ?

Any answers appreciated as would be any links to legislation that the foreign employer could look at.

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Banned

VAT is for products and services that people buy or sell, Tax is on people and businesses for the money they earn.

Does he mean national insurance number, which is used for tax purposes?

edit: If he's working in a foreign country he should be paying tax to that country.

[COLOR="DarkOrchid"]You just need to tell your potential employer that you're not VAT registered.[/COLOR]

Original Poster

lumoruk;7614840

VAT is for products and services that people buy or sell, Tax is on … VAT is for products and services that people buy or sell, Tax is on people and businesses for the money they earn.Does he mean national insurance number, which is used for tax purposes?.



No - he's selling a service - just like your plumber in this country.

chrysha;7614904

[COLOR=DarkOrchid]You just need to tell your potential employer that … [COLOR=DarkOrchid]You just need to tell your potential employer that you're not VAT registered.[/COLOR]



As I thought. So the employer simply pays the wages to the employee, no Vat implication for the employer - yes?

virus;7614961

As I thought. So the employer simply pays the wages to the employee, no … As I thought. So the employer simply pays the wages to the employee, no Vat implication for the employer - yes?



They won't pay wages you would just invoice for them with 'NO VAT'.

I would check to see if local tax's are due for foreign nationals though. :thumbsup:
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