DOERS SHE OR DOESN'T SHE

I have an advertiser who claims that, as her company is UK based, she is not obliged to pay IVA on an advertisement she is placing in a Spanish news portal. Is she right? Thanks! - Mike

If one is VAT registered in the EU one doesn't pay VAT for goods or service supplied by other EU countries (as it would be impossible to get the money back). On your VAT return you make a sort of dummy entry whereby you acknowledge what the vat would have been had you paid it and then simultaneously claw it back. In short, you neither pay nor charge VAT to businesses in other countries, EU or otherwise. If you import a product from a non-EU country you pay VAT on entry and then claw it back. 

Thanks everyone! I think that settled that. I guessed as much but a second or third opinion, from those better positioned to know the answer is always useful - and appreciated. - Mike