IT company with service from Thailand. Invoice and VAT

IT company with service from Thailand.

Invoice and VAT  Accounting specialist, accountant, accounting, accounting, ruse, sofia, burgas

 

Question:

Hello !

Our company, a company in the field of IT services registered with VAT, has to use the services of an IT specialist from Thailand.

Our question is this:

1.Where is an individual and issued an invoice for a service, should we charge VAT and issue a protocol to include in the Purchase Log and should we also reflect it in the sales log?

Or is it not able to issue an invoice, is it possible to pay only by bank transfer? So how do we post it?

2. If it is a Thai company how is the invoice processed?

 

And if so, what VAT number?

And which of the variants is the best and cleanest (company or company). It may be necessary, if we are happy, to continue working with them on certain tasks.

Thanks in advance for the time it takes

Greetings!

 

Answer:

Hello,

Whether you receive the service from a physical (IT) or a legal (other IT) person from Thailand, your IT company (recipient of the service) is a taxable person and the place of delivery of the service is in Bulgaria. By virtue of this circumstance, you shall, by a protocol, self-assess VAT (Article 82 (2) (3) in conjunction with Article 21 (2) of the VATA) and include the record in the sales logs. If you are registered under VATA on the grounds of Art. 97a of the VAT Act, the company is not entitled to a tax credit and can not include the protocol in the purchase diaries (art. 70, para 4 of the VAT Act). If you are registered in general terms, the company may include the VAT reverse charge protocol in the purchase logs and use a tax credit.

There is no problem that the invoice in question is from Thailand (it is supposed to be in a language you understand), but when checked by the NRA, you may be required to be accompanied by a translation. It is clear that this invoice will not have a VAT number (it is valid only for EU countries) and will not be included in VIES declarations.

It is imperative that you have an invoice, as the payment of amounts to the bank is not a proof of service. In this context, it is better to provide the service to you by a law firm (another IT firm) rather than an individual (an IT professional).

We hope we have been useful.

Best regards.

 




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