Exchange Rate for 2013 Tax Return

[bernipops3]

I see from the FAQ that the conversion rate for 2013 is 1.1778€ to the GBP.

Do you have a link to the tax office site that states this please as the guy who is doing our tax return is saying that the exchange rate is taken at 31 December 2013 and should be 1.1995 to the GDP.

Thanks very much.

Bernipops

[El Cid]

Just tell him he is talking rubbish!

As far as I am aware the tax office do not publish an annual figure, just the year end one.

The figure in the FAQ is the average for the year from various FX sites.

It is up to you to declare your income in Euros. Strictly speaking, you should use the rate that applied on the day that you received the income. In most cases the income is regular over the year, so an average is OK.

Personally, as most of my pensions are paid direct into my Spanish bank I just add up all of the individual amounts. For those pensions that are paid into my UK account I take the annual total and use the average annual rate.

Sid

[Beachcomber]

The exchange rate on 31st December is for declarations on the form 720 not the annual tax return which, as Sid says, is most definitely the average for the year or on individual dates on which the payments were received.

[Trooperman]

My Spanish accountant (sounds grand I know!) has just completed my return for me and in his email, states the following:

We have applied the official exchange rate raised by the BCE which was 0, 84926 for the year 2013.

[AndaluzCampo]

Our advisor insists the rate is 0.836 and that's what's being applied.
This equates to 1.196 not 1.1778.
Is this system open to abuse, like making some extra on the side or having some clients pay more than others by applying a different rate?
Can anyone advise please?

[El Cid]

Our advisor insists the rate is 0.836 and that's what's being applied.
This equates to 1.196 not 1.1778.
Is this system open to abuse, like making some extra on the side or having some clients pay more than others by applying a different rate?
Can anyone advise please?

Yes, he is wrong and he is costing you money by using a disadvantageous rate.

Ask him to prove that that is the official rate.

Otherwise, get another advisor - quick!

Sid

[Beachcomber]

Well you can refer him to this and take delight in telling him he is WRONG:

http://sdw.ecb.europa.eu/quickview.do?S ... EUR.SP00.A

You could also tell him you want the difference refunded to you forthwith.

[Trooperman]

Well! That's confirmed my faith in my accountant!

[masterob]

I completed my tax return last week at the Tax Office here in Alora. My financial situation is very straightforward so I go in with details of last years income and they do the rest. They showed no interest in the exchange rate I used, it seemed to be irrelevant to them as it has over the last six years.

[country boy]

Same for us...no interest in the calculations, we used 1.178.coincidentally. ( I still had to pay €700 tho' grrrrr!).

[El Cid]

They showed no interest in the exchange rate I used, it seemed to be irrelevant to them as it has over the last six years.

It's not their problem. It is down to you to declare your income in Euros. How you arrive at that figure is entirely up to you.

It is a self assessment system so you can declare anything you like. If they decide that you might be not declaring it in full then they will just make you prove everything in every detail but that rarely happens to us mortals.

Frankly, they are usually so surprised to see a foreigner actually declare anything, they are more likely to send you a Xmas card than a tax demand!!


Sid

[Beachcomber]

Any query over the exchange rate used is more likely to be raised if/when the declaration is examined by a tax inspector at the central AEAT office rather than a clerk in the local tax office. I would venture to add that the staff in the Alora office, as sweet and helpful as they are, cannot be said to be totally au fait with what is going on nationally.

[country boy]

Absolutely!!