DUTY TO BILL IN SPAIN

21Oct2013

By Sara Duarte, accountant and tax adviser in Spain, General rules to produce an invoice in Spain.

Entrepreneurs and professionals who carry out an activity in Spain are under the obligation to issue an Spanish invoice and a copy of the same for the delivery of goods and services carried out and to keep a copy of the invoice issued. They also have the obligation to issue an invoice for any advance payments received with the exception of exempt Intra-Community deliveries of goods.

In all cases the Entrepreneurs and professionals are under the obligation to issue an Spanish invoice when they fall under the following cases:

When the recipient of the invoices is an entrepreneur or professional and is purchasing the goods or services in the course of his/her business.
When the recipient of the service or good demands it in order to fulfil any tax obligation.
Export of goods exempt of IVA(except duty free shops).
Intra-Community deliveries exempt of IVA.
When the recipient is a Public Administration or Legal entity not acting as a entrepreneur or professional.
Certain deliveries of goods which require installation or assembly before being handed over to the buyer, as long as this has taken place in the territory where the tax is in force.
Remote Sale and delivery of goods subject to special tax, as long as its understood that the same take place in the territory where the tax is in force.

Exceptions to the Duty to Bill

There are certain exceptions to the obligation to issue an invoice in Spain; this can fall under the following transactions:

The transactions exempt of Spanish VAT (as stated in the Law 37/1992 dated 28th of December, article 20), with the exception of the transactions related to the healthcare and hospitalization , delivery of real estate and the delivery of goods exempt because they have not been able to deduct the Spanish Vat input.
The transactions done by the entrepreneur or professional in the development of its activity which is subject to the Compensation Charge special scheme. Any way, an invoice should always be issued in all the cases where the delivery of real estate when the purchaser has waived the IVA exemption (article 154 – IVA Law)
On the development of the activity for which they are registered in the simplified IVA Tax system unless due to the high volume of the activity the amount taxable will be charged depending on the income volume. Nevertheless, they should always issue an invoice for the transfer of the tangible and intangible fixed assets as stated on (article 123.1-B) nº 3 IVA Law 37/1992.
Those that are authorised by the Tax Management Department of the Tax Agency in relation to business sectors or specific business in order to avoid disturbances to the development of the normal business activity.
Those transactions done by entrepreneurs or professionals which are under the special tax regime of agriculture, livestock, fishing without prejudice their duty to issue receipts (agricultural receipt) for flat rate compensation if they in turn have purchased the goods or services to entrepreneurs or professionals subject to the same tax regime. In all cases, an invoice should always be issued for the deliveries of real estate stated on Article129.1, second paragraph fro the IVA Law 37/1992.
Financial & Insurance operations, regardless the nature of the receiver of the service even if they are entrepreneurs or professional exercising their activity with the exception of the transactions subject but not exempt localised in the Territory of Application of the Tax or in another member State.

Additional information on this subject can be found at our micro web www.accountantsinspain.com

Do not hesitate to contact the leading English speaking accountants at our firm Arcos & Lamers Asociados for any tax, legal, labour and accountancy advice.

Sara Duarte, Accountant in Marbella, tax consultant in Spain!.

Marbella, October 2013