Did you know this? If you negotiate your daily rate in Northern Europe and/or US, it is without VAT. If you do in the south, then VAT is included! This is how companies save money!
So, if e.g. your daily rate is 500€, then in northern Europe you invoice the customer 617 € (assuming VAT 19%). In southern Europe, you invoice 500€, and you pay the VAT, hence your actual rate is 405€!!!
3 σχόλια:
True, in Western Europe VAT is not recognized as an income. Between professionals we always provide or negociate prices excluding VAT (products as well as services). When you invoice your customer, you charge it including VAT (with details, eg. price excluding VAT, current VAT rate (%) and total amount to pay including VAT).
Richard
As far as I understood, when your company is VAT registered, you should always quote your prices including VAT (or state that it is explicitly excluded).
I find it quite confusing in Greece that some companies quote prices excluding VAT. For example, e-tennis.gr. It makes it difficult to compare prices this way.
Back in South Africa, the moment your company was VAT registered, you had to always quote your price including VAT.
It is better to state these things up front. If someone did some work for me and quoted €250 and then afterwards wanted me to pay €297.50, I'd be a bit miffed.
Just my 2c :-)
Heinz
Δημοσίευση σχολίου