IVA

Can someone confirm the legalities of an SL company providing products or services to another company, registered or not in Spain, without charging IVA?

I know some things are IVA exempt, but the products or services, in question, do not fall under that umbrella.

I am asking as a client of mine has been approached by a company who are offering just that. A factura is being asked for before payment is made, my clients company is fully registered and legal. They want to know how illegal it would be for them to proceed, and if there would be any repercussions.

Sorry it all sounds a bit cloak and dagger but as you could understand I would not wish to name any names, or in any way cast aspersions without knowing if this is indeed legitimate.

I share their concerns, but would rather ask informally at this juncture than involve my legal representative, or theirs.

TIA

Anyone ???

Hi Wilma,
If I were your client I would shy away from this under the counter deal, as you may have read in the Spanish and English press here in Spain that the government are cracking down on all sorts of curroption as the arrest of several Mayors of differing parts of the costas are just the tip of the ice burgh.

Good Luck in whatever your client decides.

David SR.

Yes that would be my advice. I have found a little bit more out and it looks to me that this might be Asda money (Back pocket). Another client who had already taken out the more legit deal with them was not happy with the service or rather lack he was getting and went to check out their offices to have a chat as they were not responding to emails/calls. He found the office all locked up and no one at home.

He tried on more than one occasion, so not looking that good. Maybe they were looking for the air fare home....lol