EURO CAR MAGS - TAX ON PHOTOS ?
Discussion
I submitted a bunch of pics to a high-circulation Spanish car magazine last October, loads of which were published in two consecutive issues.
Five months later, invoices remain unpaid, and now their excuse is that they have to deduct 15% for Spanish taxes, unless I allow them to own the images indefinitely.
This is supposed to be a respected magazine / publisher, but something stinks - can anyone shed any light on whether they've had experience of similar ?
www.fluidimages.co.uk
Five months later, invoices remain unpaid, and now their excuse is that they have to deduct 15% for Spanish taxes, unless I allow them to own the images indefinitely.
This is supposed to be a respected magazine / publisher, but something stinks - can anyone shed any light on whether they've had experience of similar ?
www.fluidimages.co.uk
Although it may not be much of a consolation, you need to agree terms of trade and a contract before undertaking work and giving it to a client. If you have anything in writing - such as an email - to support their agreement to pay you a set fee that will assist any case you might bring. I agree fees with magazines before undertaking commissions or selling them pictures or text. My terms of trade (detailed in invoice) stipulate that I maintain copyright until payments have been received.
Their argument sounds pretty poor actually as every company has a tax liability.
One of the downsides of being a freelancer is finding out good and bad clients, those that pay on time and those that don't pay at all. The later are very rare thankfully.
Their argument sounds pretty poor actually as every company has a tax liability.
One of the downsides of being a freelancer is finding out good and bad clients, those that pay on time and those that don't pay at all. The later are very rare thankfully.
I have some shares in Santander (nee Abbey National) and the dividends always come with Spanish Witholding Tax deducted. (Not 15% though, but then tax deduected on UK dividends is at the lowest rate going). I suspect this is the way of things. In theory, being EU and all that, you should be able to offset against your income tax I would imagine. Don't know for sure though.
I have had a quick check with our in-house tax chap. He's not a Spanish tax expert per se but his knowledge of European taxes is pretty good.
The consensus of opinion is that they might be trying to apply a local Spanish withholding tax which is levied on professional services supplied in Spain by a person who pays Spanish tax.
I would tell them you are not subject to Spanish tax and tell them they do not need to withhold anything on the amount of your invoice. See if that fixes things without having the hassle and expense of legal intervention.
Cheers
Chris
The consensus of opinion is that they might be trying to apply a local Spanish withholding tax which is levied on professional services supplied in Spain by a person who pays Spanish tax.
I would tell them you are not subject to Spanish tax and tell them they do not need to withhold anything on the amount of your invoice. See if that fixes things without having the hassle and expense of legal intervention.
Cheers
Chris
cvp said:
I have had a quick check with our in-house tax chap. He's not a Spanish tax expert per se but his knowledge of European taxes is pretty good.
The consensus of opinion is that they might be trying to apply a local Spanish withholding tax which is levied on professional services supplied in Spain by a person who pays Spanish tax.
I would tell them you are not subject to Spanish tax and tell them they do not need to withhold anything on the amount of your invoice. See if that fixes things without having the hassle and expense of legal intervention.
Cheers
Chris
The consensus of opinion is that they might be trying to apply a local Spanish withholding tax which is levied on professional services supplied in Spain by a person who pays Spanish tax.
I would tell them you are not subject to Spanish tax and tell them they do not need to withhold anything on the amount of your invoice. See if that fixes things without having the hassle and expense of legal intervention.
Cheers
Chris
If it's with-holding tax then it's law to with-hold it on all professional services suplied in Spain - it doesn't matter if you are UK Resident for Tax they must still with-hold, it even applies to Companies, not just individuals.
It is offsetable against UK Income Tax, they should give you a certificate.
sgrimshaw said:
cvp said:
I have had a quick check with our in-house tax chap. He's not a Spanish tax expert per se but his knowledge of European taxes is pretty good.
The consensus of opinion is that they might be trying to apply a local Spanish withholding tax which is levied on professional services supplied in Spain by a person who pays Spanish tax.
I would tell them you are not subject to Spanish tax and tell them they do not need to withhold anything on the amount of your invoice. See if that fixes things without having the hassle and expense of legal intervention.
Cheers
Chris
The consensus of opinion is that they might be trying to apply a local Spanish withholding tax which is levied on professional services supplied in Spain by a person who pays Spanish tax.
I would tell them you are not subject to Spanish tax and tell them they do not need to withhold anything on the amount of your invoice. See if that fixes things without having the hassle and expense of legal intervention.
Cheers
Chris
If it's with-holding tax then it's law to with-hold it on all professional services suplied in Spain - it doesn't matter if you are UK Resident for Tax they must still with-hold, it even applies to Companies, not just individuals.
It is offsetable against UK Income Tax, they should give you a certificate.
My source stated it was a specific tax in Spain on professional services supplied by Spanish tax registered people. Logically this passes the burden of collecting tax revenues onto companies rather than their revenue authority and also get rounds the issue that maybe people are not declaring all their taxable income. He stated that he does not know of a general withholding tax on services supplied. However he is not a Spanish tax expert so could be wrong.
Chris
cvp said:
My source stated it was a specific tax in Spain on professional services supplied by Spanish tax registered people.
Withholding tax applies to any professional service supplied REGARDLESS of whether they are from.
When working for a UK limited company, in Spain supplying IT Consultancy the Spanish client company withheld 15% of all our invoices.
There is no way round it.
Simon
sgrimshaw said:
cvp said:
My source stated it was a specific tax in Spain on professional services supplied by Spanish tax registered people.
Withholding tax applies to any professional service supplied REGARDLESS of whether they are from.
When working for a UK limited company, in Spain supplying IT Consultancy the Spanish client company withheld 15% of all our invoices.
There is no way round it.
Simon
Cheers for the clarification. I'll update my colleague to make sure he knows this as we are likely to do some work in Spain fairly soon.
Cheers
Chris
sgrimshaw said:
Withholding tax applies to any professional service supplied REGARDLESS of whether they are from.
When working for a UK limited company, in Spain supplying IT Consultancy the Spanish client company withheld 15% of all our invoices.
There is no way round it.
When working for a UK limited company, in Spain supplying IT Consultancy the Spanish client company withheld 15% of all our invoices.
There is no way round it.
sgrimshaw said:
If it's with-holding tax then it's law to with-hold it on all professional services suplied in Spain - it doesn't matter if you are UK Resident for Tax they must still with-hold, it even applies to Companies, not just individuals.
It is offsetable against UK Income Tax, they should give you a certificate.
Ah - just found this thread - you all beat me to the witholding tax issue. Our company has just changed it's tax structure meaning all our clients due copyright-type (royalty) payments (old and new) would be subject to this - BUT they can complete some exemption certificates and therefore get paid 100%. Not sure how this works within EU - I'll look into it at work.... there's a something in chapter 9 of this double taxation relief document - it's looking at it from the other side but useful info anyway.
If the exemption isn't available the certificate Simon mentions should be supplied to claim it back.
Also mention on page 7 of this mind numbing Inland Revenue document.
Gassing Station | Photography & Video | Top of Page | What's New | My Stuff