Invoicing Requirements in Spain (IVA)

This article provides a comprehensive guide to invoicing requirements for freelancers and small businesses in Spain, focusing on the Impuesto sobre el Valor Añadido (IVA) (Value Added Tax).

Mandatory Invoice Fields

All invoices issued in Spain must contain specific information to be considered valid. This applies to a factura completa (complete invoice) and its copies. The following details are mandatory, without prejudice to other requirements that may apply for different purposes:

• Invoice Number and Series: Each invoice must have a unique, correlative number within its series. Specific series are mandatory for invoices issued by recipients or third parties, rectifying invoices, and those issued by adjudicators in administrative and judicial forced execution procedures AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.a)].
• Date of Issue: The date on which the invoice is issued AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.b)].
• Full Identification of Issuer and Recipient: Full name and surname, or full company name (razón o denominación social completa), of both the person or entity obliged to issue the invoice and the recipient of the operations AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.c)].
• Tax Identification Number (NIF): The Número de Identificación Fiscal (NIF) attributed by the Spanish tax administration or, if applicable, by another EU Member State, with which the issuer has carried out the operation AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.d)]. The recipient's NIF is also mandatory in specific cases:
  • For an exempt intra-community supply of goods AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.d.1º)].
  • When the recipient is the taxable person (sujeto pasivo) of the tax for the operation AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.d.2º)].
  • For operations deemed performed in the Spanish territory of application of the tax (territorio de aplicación del Impuesto - TAI), and the issuer is established in that territory AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.d.3º)].
• Address: The address of both the issuer and the recipient of the operations. If multiple fixed places of business exist, the location of the relevant business or establishment should be indicated if it affects the tax regime AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.e)].
• Description of Operations: A clear description of the goods delivered or services rendered, including all necessary data to determine the tax base and its amount. This must include the unit price without tax and any discounts or rebates not included in that unit price AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.f)].
• Applied Tax Rate(s): The tipo impositivo (tax rate) or rates applied to the operations AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.g)].
• Tax Amount (Cuota Tributaria): The cuota tributaria (tax amount) passed on, which must be stated separately AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.h)].
• Date of Operations/Advance Payment: The date on which the operations were carried out or an advance payment was received, if this date is different from the invoice issue date AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.i)].
• Specific Mentions for Certain Operations:
  • Exempt Operations: A reference to the relevant provisions of Directive 2006/112/CE or the Spanish VAT Law, or simply the indication that the operation is exenta (exempt) AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.j)].
  • New Means of Transport: For deliveries of new means of transport (as per Article 25 of the VAT Law), their characteristics, date of first entry into service, and distances covered or hours of navigation/flight until delivery AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.k)].
  • Invoicing by Recipient: If the recipient issues the invoice on behalf of the supplier, the mention "facturación por el destinatario" (invoicing by the recipient) AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.l)].
  • Reverse Charge Mechanism: If the recipient is the taxable person of the tax (inversión del sujeto pasivo), the mention "inversión del sujeto pasivo" (reverse charge mechanism) AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.m)].
  • Special Schemes: Specific mentions for operations under the régimen especial de las agencias de viajes (special scheme for travel agencies), régimen especial de los bienes usados, objetos de arte, antigüedades y objetos de colección (special scheme for second-hand goods, works of art, antiques, and collectors' items), or régimen especial del criterio de caja (special cash accounting scheme) AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.n), o), p)].

When a single invoice documents multiple operations, the part of the tax base corresponding to each operation must be specified separately if they are exempt and non-exempt, subject to reverse charge and not, or subject to different tax rates [BOE - RD 1619/2012, Art. 6.2].

Registration IDs

The primary registration ID required on invoices in Spain is the Número de Identificación Fiscal (NIF) (Tax Identification Number). This NIF can be either the one assigned by the Spanish tax administration or, for cross-border transactions, the NIF from another European Union Member State AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.d)].

For intra-EU transactions, specifically for exempt intra-community supplies of goods or operations where the recipient is the taxable person, the recipient's NIF (effectively their VAT ID) must also be included on the invoice AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.d.1º, 6.1.d.2º)].

VAT Rates

The provided sources specify that invoices must include the tipo impositivo o tipos impositivos (tax rate or rates) applied to the operations and the cuota tributaria (tax amount) separately AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.g), h)].

However, the crawled sources do not provide specific details on the standard, reduced, or zero/exempt IVA rates applicable in Spain, nor do they offer examples of goods or services that fall under each category. For current IVA rates and their application, it is advisable to consult the official website of the Agencia Estatal de Administración Tributaria (AEAT) (Spanish Tax Agency) or relevant tax legislation.

Intra-EU Transactions

For transactions within the European Union, Spain applies the inversión del sujeto pasivo (reverse charge mechanism) in certain situations. This means that the recipient of the goods or services, rather than the supplier, is responsible for accounting for the IVA.

Key aspects for intra-EU transactions:

• Recipient's NIF Mandatory: The NIF of the recipient is mandatory on the invoice for exempt intra-community supplies of goods (as per Article 25 of the VAT Law) and for any operation where the recipient is the taxable person of the tax AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.d.1º, 6.1.d.2º)]. This NIF should be a valid VAT ID from an EU Member State.
• "Inversión del Sujeto Pasivo" Mention: If the reverse charge mechanism applies (i.e., the recipient is the taxable person), the invoice must explicitly state "inversión del sujeto pasivo" AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.m)].
• Invoice Obligation: An invoice must be issued for deliveries of goods destined for another Member State (Article 25 of the VAT Law) [BOE - RD 1619/2012, Art. 2.2.b)]. Also, if an operation is subject to tax in another Member State and the recipient is the taxable person, the Spanish supplier must issue an invoice, unless the recipient issues it on the supplier's behalf [BOE - RD 1619/2012, Art. 2.3.b).a'')].
• Simplified Tax Details: For operations subject to tax in another Member State where the recipient is the taxable person, the issuer may omit the detailed description of operations, tax rate, and tax amount, and instead indicate the amount subject to tax [BOE - RD 1619/2012, Art. 6.3].

Special Regimes

Spain has several special IVA regimes that affect invoicing obligations and content. The sources do not describe a general small business exemption from IVA based on turnover, but rather specific schemes with their own rules.

Operations Exempt from Invoicing Obligation

In general, businesses and professionals are obliged to issue invoices for all operations. However, there are exceptions where an invoice is not required, unless the recipient is a business/professional or explicitly requests an invoice for tax purposes [BOE - RD 1619/2012, Art. 3.1]:

• IVA Exempt Operations: Operations exempt from IVA under Article 20 of the VAT Law, except for specific operations listed in Article 20.Uno.2º, 3º, 4º, 5º, 15º, 20º, 22º, 24º, 25º, and 28º of the VAT Law (e.g., certain financial, insurance, educational, or cultural services) [BOE - RD 1619/2012, Art. 3.1.a)].
• Régimen Especial del Recargo de Equivalencia (Special Surcharge Scheme): Operations carried out by businesses under this scheme, except for non-exempt deliveries of real estate [BOE - RD 1619/2012, Art. 3.1.b)].
• Régimen Simplificado (Simplified Scheme): Operations carried out by businesses under the simplified IVA scheme, unless the tax is determined based on income volume. This exception does not apply to transfers of fixed assets [BOE - RD 1619/2012, Art. 3.1.c)].
• Financial and Insurance Services: Certain financial and insurance services (Article 20.uno.16º and 18º, a) to n) of the VAT Law), unless they are subject and not exempt in Spain or another EU Member State, or subject and exempt in Spain (or Canarias, Ceuta, Melilla) and performed by specific types of entities (e.g., not insurance companies, collective investment scheme managers, credit institutions) [BOE - RD 1619/2012, Art. 3.2].
• Régimen Especial de la Agricultura, Ganadería y Pesca (Special Scheme for Agriculture, Livestock, and Fishing): Operations carried out under this scheme, except for deliveries of real estate [BOE - RD 1619/2012, Art. 3.3].
• Authorized Exceptions: Other operations specifically authorized by the Tax Management Department of the AEAT [BOE - RD 1619/2012, Art. 3.1.d)].

Required Invoice Notes for Special Regimes

Invoices issued under specific special regimes must include particular mentions:

• Régimen Especial del Recargo de Equivalencia: Businesses applying the recargo de equivalencia (surcharge) must issue separate invoices for these deliveries, clearly stating the surcharge rate and its amount. Retailers under this regime who also conduct other business activities must keep separate invoices for goods destined for each activity [BOE - RD 1619/2012, Art. 16.4].
• Régimen Especial de la Agricultura, Ganadería y Pesca: When acquiring goods or services from individuals under this scheme, the buyer (who must be a business or professional) must issue a recibo (receipt) instead of an invoice. This receipt must include a series and number, full identification (name, NIF, address) of both the issuer and the farmer (indicating their special regime status), description of goods/services, place and date of operations, price, compensation percentage, compensation amount, and the farmer's signature. A copy must be given to the farmer [BOE - RD 1619/2012, Art. 16.1].
• Régimen Especial de los Bienes Usados, Objetos de Arte, Antigüedades y Objetos de Colección (Second-hand Goods, Works of Art, Antiques, and Collectors' Items):
  • A purchase document must be issued for acquisitions from non-businesses/professionals, signed by the seller, containing the details required for a complete invoice [BOE - RD 1619/2012, Art. 16.2.a)].
  • Invoices for sales under this regime must include the mention "régimen especial de los bienes usados", "régimen especial de los objetos de arte", or "régimen especial de las antigüedades y objetos de colección" AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.o), 16.2.b)].
  • The IVA amount cannot be stated separately; it is considered included in the total price [BOE - RD 1619/2012, Art. 16.2.c)].
• Régimen Especial de las Agencias de Viajes (Travel Agencies): Invoices for operations under this regime must include the mention "régimen especial de las agencias de viajes" AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.n), 16.3)]. The IVA amount cannot be stated separately; it is considered included in the price [BOE - RD 1619/2012, Art. 16.3].
• Régimen Especial del Criterio de Caja (Cash Accounting Scheme): Invoices for operations under this scheme must include the mention "régimen especial del criterio de caja" AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 6.1.p)].

Simplified Invoices

Spain allows for the issuance of a factura simplificada (simplified invoice), which replaces the traditional "tique" and has fewer mandatory fields than a complete invoice. This is intended to reduce administrative burdens for certain types of transactions.

When Simplified Invoices are Allowed AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 4.1, 4.2]

Simplified invoices can be issued in the following situations:

• When the total amount does not exceed 400 euros (IVA included).
• When issuing a factura rectificativa (rectifying invoice).
• When the total amount does not exceed 3,000 euros (IVA included) for specific operations, including:
  • Retail sales (where the recipient is a final consumer, not for goods primarily for business/professional use).
  • Ambulance sales or services.
  • Door-to-door sales or services.
  • Transport of persons and their luggage.
  • Hospitality and catering services (restaurants, bars, cafes, etc., and on-the-spot food/drink supply).
  • Services provided by dance halls and discotheques.
  • Telephone services from public booths or using non-identifiable cards.
  • Hairdressing and beauty institute services.
  • Use of sports facilities.
  • Photo developing and photographic studio services.
  • Vehicle parking and estacionamiento.
  • Film rental.
  • Dry cleaning and laundry services.
  • Use of toll roads.
• Other cases authorized by the Tax Management Department of the AEAT.

When Simplified Invoices are NOT Allowed [BOE - RD 1619/2012, Art. 4.4]

Simplified invoices cannot be issued for:

• Intra-community supplies of goods (Article 25 of the VAT Law).
• Deliveries of goods referred to in Article 68.3.a) of the VAT Law, unless the special scheme in Chapter XI, Title IX applies.
• Deliveries of goods or services deemed performed in Spain where the supplier is not established in Spain, the recipient is the taxable person, and the invoice is issued by the recipient (reverse charge).
• Deliveries of goods or services referred to in Article 2.3.b).b') (operations outside the EU or in another MS where recipient is TP and supplier is established in TAI).

Mandatory Fields for Simplified Invoices AEAT - Contenido de las facturas, [BOE - RD 1619/2012, Art. 7.1]

Simplified invoices must contain:

• Number and, if applicable, series (correlative, with specific series for certain situations).
• Date of issue.
• Date of operation or advance payment, if different from the issue date.
• NIF and full name/company name of the issuer.
• Identification of the type of goods delivered or services rendered.
• Applied tax rate and, optionally, the expression "IVA incluido" (IVA included). If different rates apply, the tax base for each must be specified separately.
• Total consideration.
• For rectifying invoices, a clear and unequivocal reference to the rectified invoice and the modifications.
• Specific mentions required for exempt operations, reverse charge, or special regimes (as listed in Article 6.1.j) to p) for complete invoices).

What Can Be Omitted from Simplified Invoices

Compared to a complete invoice, a simplified invoice generally omits the full identification (NIF, name, address) of the recipient and the separate listing of the IVA amount. However, if the recipient is a business or professional and requests it, or if a non-business recipient requests it for tax purposes, the issuer must include the recipient's NIF and address, and the IVA amount separately [BOE - RD 1619/2012, Art. 7.2, 7.3].

Retention Requirements

Businesses and professionals in Spain are obliged to retain invoices and other supporting documents for a specified period. This obligation applies to both issued and received documents [BOE - RD 1619/2012, Art. 19.1].

• Retention Period: Documents must be conserved for the period established in the Ley 58/2003, de 17 de diciembre, General Tributaria (General Tax Law) [BOE - RD 1619/2012, Art. 19.1]. This generally means 4 years for tax purposes, but it is advisable to check other applicable regulations (e.g., commercial law may require longer periods, such as 6 years).
• Documents to Conserve:
  • Invoices received.
  • Copies or matrices of invoices issued.
  • Accounting justifications for certain operations.
  • Receipts issued under the special scheme for agriculture, livestock, and fishing (both original by issuer and copy by farmer).
  • Import documents [BOE - RD 1619/2012, Art. 19.1].
• Format and Conditions: Documents (paper or electronic) must be conserved in a way that guarantees the authenticity of their origin, the integrity of their content, and their legibility from the date of issue and throughout the retention period. They must be kept orderly and accessible to the tax administration without undue delay [BOE - RD 1619/2012, Art. 8.1, 19.2, 20.1].
• Electronic Conservation: Conservation by electronic means is permitted, provided it ensures legibility in the original format, along with associated data and verification mechanisms for authenticity and integrity. The tax administration must be granted online access, remote upload, and use of the conserved data [BOE - RD 1619/2012, Art. 20.2, 21.1, 21.2, 23].
• Location of Conservation: Documents can be conserved anywhere, provided they are made available to the tax administration without delay upon request. If conservation is carried out outside Spain, it must be done electronically, guaranteeing online access and remote use by the tax administration, and prior communication to the AEAT is required [BOE - RD 1619/2012, Art. 22.1, 22.2].
• Third-Party Conservation: The obligation can be fulfilled by a third party acting on behalf of the business, but the business remains responsible. If the third party is not established in the EU (with certain exceptions), prior communication to the AEAT is required [BOE - RD 1619/2012, Art. 19.3, 19.4].

Recent Updates or Upcoming Changes

Real Decreto 1007/2023, de 5 de diciembre (Royal Decree 1007/2023, of December 5) introduced significant updates to the invoicing regulations, particularly regarding electronic invoicing and the use of certified IT systems. This decree, which updated the Reglamento por el que se regulan las obligaciones de facturación (Regulation on Invoicing Obligations) approved by Real Decreto 1619/2012, aims to enhance tax control and combat fraud [BOE - RD 1619/2012, Última actualización publicada el 06/12/2023].

Key updates include:

• VERI*FACTU System (Certified Invoicing Software): For invoices issued using specific IT systems that comply with the new technical and functional requirements (known as the VERI*FACTU system), additional content is mandatory:
  • A graphical representation of part of the invoice content via a QR code. For electronic invoices, the QR code can be replaced by its content [BOE - RD 1619/2012, Art. 6.5.a), 7.5].
  • The phrase "Factura verificable en la sede electrónica de la AEAT" (Invoice verifiable on the AEAT electronic headquarters) or "VERI*FACTU" must be included. This is only required if the IT system automatically sends all invoicing records to the AEAT [BOE - RD 1619/2012, Art. 6.5.b), 7.5].
• Presumption of Authenticity and Integrity: The authenticity of the origin and integrity of the content of an invoice are presumed to be accredited when issued using an IT system that complies with the new requirements [BOE - RD 1619/2012, Art. 8.4].
• Promotion of Electronic Invoicing: The regulation reinforces the principle of equal treatment for paper and electronic invoices, aiming to reduce costs and increase business competitiveness. Electronic invoices are defined as those issued and received in electronic format, complying with the regulation's requirements, and requiring the recipient's consent [BOE - RD 1619/2012, Preamble, Art. 9.1, 9.2]. Authenticity and integrity can be guaranteed by any legal means, including usual business management controls, advanced electronic signatures, or Electronic Data Interchange (EDI) [BOE - RD 1619/2012, Preamble, Art. 8.3, 10.1].

These updates reflect Spain's commitment to modernizing tax administration and ensuring greater transparency in business transactions. The specific implementation dates for the VERI*FACTU system requirements will be detailed in subsequent Ministerial Orders.