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

Tickets disappeared and have been replaced by “simplified invoices”.

This has taken place pursuant to the Royal Decree 1619/2012, of 30th November, approving the Regulations that govern the obligations to issue invoices.

The simplified invoice is a document that has replaced the usual tickets, with some changes included. The simplified invoices  have less information than usual invoices.

Who has the right to issue simplified invoices?

Pursuant to article 4 of aforesaid Royal Decree 1619/2012, the obligation to issue an invoice may be replaced, in some cases, by a ticket up to the year 2012 and by the new simplified invoice as from the year2013 inany of the following cases:

Any business manager:

a. when the sum of the invoice is less than 400 Euros, VAT included.

b. when a corrected invoices of a previous one must be issued.

Companies with the following specific activities:

In the case of transactions described below, when the sum of the invoice does not exceed 3000 Euro, VAT included:

a. Retail sales

b. Street selling or service rendering

c. Door-to-door selling or service rendering

d. Transport of persons and their luggage

e. Catering companies and restaurants: restaurants, bars, cafeterias, chocolate shops and similar

f. Services rendered by dance clubs and nightclubs.

g. Telephone services for use of telephone boxes, or by means or telephone cards not allowing any identification of the user

h. Hairdresser’s and services rendered by beauty salons.

i. Use of Sport Facilities

j. Developing of pictures and services rendered by photographic studios

k. Car parks and parking lots

l. video renting

m. Laundries and dry cleaner’s

n. Use of toll motorways

o. Other services authorized by the Inland Revenue

Contents of the simplified invoice

Pursuant to article 6 of aforesaid Royal Decree 1619/2012, at least the following information shall be obligatory when issuing a simplified invoice:

• Series number of the invoice
• Number of the invoice
• Date of the invoice
• Date of the sales or service rendering
• Description of the sales or service rendering
• Applicable tax and the expression “VAT included”
• Total amount

In case the invoices is issued to a business manager or self-employed professional, the following information must be added:

• Cif number and address of the client
• Percentage of VAT

 Term and language in which the invoice must be issued

Pursuant to article 11 of aforesaid Royal Decree 1619/2012, the invoices must be issued at the time of delivery of the sales or services. When the invoice is issued to to a business manager or self-employed professional, the invoices must be issued before the 16^th of the month following the month in which the corresponding tax is accrued.

The invoices may be issued in any language. But the Inland Revenue may require a translation into Spanish.

Do not hesitate to contact your fiscal advisers and economists at Arcos & Lamers Asociados for any questions on your fiscal, labour, commercial, legal and accounting issues.

María Teresa Arcos, lawyer in Marbella.

Wim Lamers, economist in Marbella.

Marbella, August 2013.

Tax advisers in Spain. Tax consultants in Marbella.

The accountants and fiscal advisers of Arcos & Lamers Asociados are pleased to inform you that the Spanish Council of Ministers recently approved to send the Bill to boost e-invoices and set up an accounting register to Parliament. This will allow to put an end to unpaid invoices of suppliers and will expedite payment procedures.

With this future Spanish law, it is expected to reach the following objectives:

• To boost the use of e-invoices both in the public and private sector.
• Suppliers will be more protected in their commercial relations with the Public Administration.
• The Administration will have a major control of the invoices in relation to their accountancy.

It is expected that the implementation of the e-invoices will lead to an annual net savings of 51 million compared to the 2.3 million of savings when dealing with the usual invoices on paper.

What does this mean for suppliers?

Suppliers will present the invoices in a digital way on a general access site for e-invoices that each Government must possess.

This will reinforce the protection of suppliers because in this way, they can give proof of the date of the invoice for the purposes of interest in case of delay in the payments of the invoices. This will also expedite the invoices procedures and will make any follow-up easier.

All invoices will have a structured format which has not been determined yet.

As from 15^th January 2015, the e-invoice will be obligatory for those persons or entities that are obliged to the digital taxation system in accordance with the current tax regulation.

Nevertheless, Spanish Public Administrations may exclude from this obligation all invoices for an amount of less than five thousand Euros.

Do not hesitate to contact our professional lawyers and economists of our law firm Arcos & Lamers Asociados if you wish to obtain more information on the “E-invoices”, as well as for all your Spanish fiscal, accounting, tax and legal inquiries.

María Teresa Arcos, lawyer in Marbella.

Wim Lamers, Economist in Marbella.

Marbella, august 2013.

Income tax in Spain

Tax adviser in Spain informing on Spanish Income Tax.

The initial name of the Spanish income tax was “general contribution to Spanish income” (contribución general sobre la renta) , which was approved, long time ago, by the law of November 20, 1932, under the government of Mr. Manuel Azaña and as Minister of Finance Mr. James Carner Romeu. The law, which took effect on January 1, 1933, set a minimum exemption of 100,000 pesetas and tariffs from 1 to 7.70%.

By Act of November 14, 1935, as Minister of Finance Joaquin Chapaprieta, the free threshold was lowered to 80,000 pesetas and maximum rates were increased upto 11%, maintaining the minimum 1%. Several relevant amendments took place between 1940 and 1960. Central Spanish State reform in a decentralized state in the 90s resulted in more changes.

During the last decade additional changes have been introduced in the Spanish tax law leaving the following scales applicable for year 2012. With other words, the Income Tax declaration to be presented in 2013 that entitles income information obtained during 2012 will be taking into account the following scales:

As an example, a taxpayer, tax resident in Andalucía, with a gross income from work of  Euros 60,000 will mean a payment of Euros 9458.31 Euros taxed by the general national scale, Euros.1.314, 51 as per the above mentioned additional scale plus Euros. 9.458.31 as by the Andalucian regional scale, making a total of Euros. 20.231.13 with an average rate of 33.72%. Kindly note that this data is obtained regardless of the family status and is for informative purposes only as no deductions have been taken into account such as those generated at the time of contributions to Spanish pensions plans, contributions to Social security, etc..

Do not hesitate to contact the multi-lingual lawyers, accountants and tax advisers in Spain of Arcos & Lamers Asociados, specialists in the Spanish tax system, for any legal, tax and labour inquiry.

María Teresa Arcos, registered lawyer in Spain.

Wim Lamers, registered accountant (economist) in Spain.

Arcos & Lamers Asociados, Spanish tax lawyers in Marbella, tax lawyers in Spain, income tax in spain specialists, accountants in Spain, accountants in Marbella, tax advisers in Spain, tax advisers in Marbella.

Marbella, June, 2013.

Accountant in Spain

Accountants in Spain.

Spanish multi-lingual proactive law firm, Arcos & Lamers Asociados, has recently launched, in addition to our weekly posts at our blog, a new micro web under the title “Accountants in Spain” providing deep going information on the Spanish Tax system, Spanish accountancy rules and tax advice that our firm provides to Spanish and north European communities, individuals and companies in Spain. Please find below a summary of the different areas we have taken into account providing answers to inquiries that our firm receives on a daily basis.

• Information to learn more on Spanish tax obligations to take into account after of constitution of your new company or on the accountancy obligations that your existing company should take care of. Additional information may be found here with regards to the Spanish fiscal system as well the accountancy services rendered by our firm.

• Information regarding Spanish company tax, Company Tax rates applicable for different types of companies.

• Specific information on reductions on Personal Income Tax in Spain for whom wish to start an activity in Spain.

• Information to take into account when your company is unable to collect debts from its clients as from an accountancy and tax point of view.

• Other services.

The professional team of Arcos & Lamers Asociados has an extensive knowledge on legal and tax issues and disposes of the material resources and the hands-on experience to attend to all your needs in accountancy, tax and legal matters in Spain

Do not hesitate to contact one of the registered professionals of this multi lingual law firm in Spain!.

María Teresa Arcos, lawyer in Spain

Wim Lamers, economist in Spain.

Marbella, May, 2013

Accountants in Spain

Accountants in Spain.

Spanish multi-lingual proactive law firm, Arcos & Lamers Asociados, has recently launched, in addition to our weekly posts at our blog, a new micro web under the title “Accountants in Spain” providing deep going information on the Spanish Tax system, Spanish accountancy rules and tax advice that our firm provides to Spanish and north European communities, individuals and companies in Spain. Please find below a summary of the different areas we have taken into account providing answers to inquiries that our firm receives on a daily basis.

• Information to learn more on Spanish tax obligations to take into account after of constitution of your new company or on the accountancy obligations that your existing company should take care of. Additional information may be found here with regards to the Spanish fiscal system as well the accountancy services rendered by our firm.

• Information regarding Spanish company tax, Company Tax rates applicable for different types of companies.

• Specific information on reductions on Personal Income Tax in Spain for whom wish to start an activity in Spain.

• Information to take into account when your company is unable to collect debts from its clients as from an accountancy and tax point of view.

• Other services.

The professional team of Arcos & Lamers Asociados has an extensive knowledge on legal and tax issues and disposes of the material resources and the hands-on experience to attend to all your needs in accountancy, tax and legal matters in Spain

Do not hesitate to contact one of the registered professionals of this multi lingual law firm in Spain!.

María Teresa Arcos, lawyer in Spain

Wim Lamers, economist in Spain.

Marbella, May, 2013

 At Arcos & Lamers Asociados, your law firm in Spain, always at the forefront of the latest technologies, we offer comprehensive advice in paying your taxes, ranging from obtaining all the necessary information for calculating, preparation and presentation of the tax settlement and the communication to the client for meeting with his tax obligations, and always, electronically, giving the whole process of the agility to the taxpayer, being resident as no resident in Spain, has in their possession in the shortest time possible their taxes paid and settled, provided within the period specified by law. All this is possible thanks to our excellent multidisciplinary team, which specializes in different areas of the Spanish Tax System, very complex in itself, by engaging different administrations, such as the National Inland Revenue, the regional ones and local levels.

Taxes on personal Income Tax, Wealth Tax, also for residents as for non residents in Spain, Company Tax, Income Tax Non- Resident(IRNR), Value Added Tax (VAT), all taxes related to real estate transactions ( for example the Capital Gain Tax, Stamp duties), local Taxes (IBI), plusvalia Taxes, other municipal taxes (such as Spanish road tax) and all the rates that may be applicable (for instance municipal garbage collection, rates, opening licence for a business premises, etc), by the mere fact of living in Spain or being a property owner in Spain, or other assets, business or companies, should be carried by specialized professionals.

Therefore, do not hesitate to approach the lawyers, registered accountants (economists) of Arcos & Lamers Asociados , who may fulfil on an efficient bases your tax obligations in Spain.

Social Security

Arcos & Lamers Asociados, Your registered accountant (economist) in Spain informs on part of royal decree 04/2013. This new Spanish law entitles a reduction on social security costs besides the already mentioned reduction on Spanish company tax and income Tax for individuals.

Do you wish to immigrate to Spain? Do you wish to start a company in Spain? Do you already carry out an activity in Spain? Are you self employed or do you have already a Spanish company?

Please kindly bare in mind the below mentioned positive news appearing on legislation regarding social security costs in Spain.

• Among the announced measurements mentioned at Spanish Tax law 04/2013 it is now confirmed a fix payment of 50 Euros for new self-employed who are minor 30 years old. Females should be under 35 years old. This fixed amount would be due for the first six month’s and additional discounts would be applicable for the following 18 month.
• The above mentioned point would be compatible in the case that they are enjoying unemployment benefits with a maximum of 9 month although it is also possible to obtain the full payment in one go for the total right of unemployment that has been built up. As new possibility the same could be invested in Capital of a company in Spain.
• Companies with over 250 employees inSpainwould be seen reduced the corresponding Spanish Social Security costs in a 75% for the first year. Rest of companies could be enjoying a reduction of 100% for hiring non full time, inexperienced employees linked to some type of formation. The mentioned reduction would also be applicable in the event that the employee did previously work in a sector were there is no offers at all or those who were unemployed for over 12  month.
• In addition, companies that have up-to 9 employees would be able to enjoy a reduction of 100% of the corresponding Social Security quotes when they employ an unemployed individual younger than 30 years old full time and with an indefinite contact.
• If a company in Spain would like to apply for one of the reductions previous mentioned they should maintain the number of pre-existing employees excluding those who suffered an appropriate dismissal.
• The measurements will be maintained until the unemployment levels of the Spanish youth falls down to 15%.

Arcos & Lamers Asociadosprovides you with all the necessary Spanish legal and fiscal advice that you may need. We offer an extensive range of overall services in a personalized and specialized manner in order to satisfy our private and institutional clients’ needs.

Law firm, Arcos & Lamers Asociados, is situated in Marbella from where we develop our services throughout Spain. Do not hesitate to contact as all companies need efficient registered accountants.

María Teresa Arcos, Lawyer in Spain.

Wim Lamers, Economist, Registered accountant in Spain.

Marbella April 2013.

Do you need a firm to deal with all your Tax, Labour, Mercantile and Accountancy
matters?

Whether you are setting up a new Company or you feel the need to change your present accountants, Arcos & Lamers Asociados would be proud to take over this role.

Setting up a new Spanish Company

If you are setting up a new Company from day one Arcos & Lamers will explain all the Tax and Fiscal obligations your company you will need to fulfil in Spain and will advise you on the best ways to comply with these obligations.

Change of Spanish Accountants

When your Company has been running for some time and, for whatever reason, you decide to change Accountants, the professional team ofArcos & Lamers Asociadoswill take an active role from the very beginning and as soon as we are supplied with all the documentation from the previous accountants, we will review everything and prepare a preliminary report tailored to your Company’s needs and stating some of the following points:

1. Mercantile situation.

2. Fiscal situation.

3. We will check if all the Fiscal & Mercantile obligations have been met and inform you accordingly.

4. When documentation is found to be incomplete we will request the missing documents.

5. If we find any inconsistencies, whether Mercantile or Tax, we will advise you  the steps that will need to be taken to correct the situation in order to avoid any future liabilities.

Whether it is a new or existing Company, Arcos & Lamers will advise you how to comply with all your Company’s obligations, and will keep you up-to-date with all the new regulations which might be of concern to yourself or your Company.

Additional information on Spanish tax law can be found here: http://www.arcos-lamersasociados.com/services/tax-law-tax-and-accounting-advice/

Click (HERE)  for information with regards to Spanish corporate law.

Sara Duarte, Accountant in Marbella

Do not hesitate to contact now Arcos & Lamers Asociados, your registered accountants (economists) in Spain and your Tax Lawyer in Marbella, Málaga,Costa del Sol, for any legal, tax and accountancy inquiry.

Bad Debts

Is your company having cash flow problems due to the delay of payments of your client/s? Invoices have been raised and VAT have been paid to Spanish Inland Revenue although your company has not got paid yet by its client/s?

Sara Duarte, professional English speaking Spanish accountant in Marbella of Arcos & Lamers Asociados is informing you on the way forward!.

At the present time many companies are suffering with Debts from which they are having difficulty to recover.  If this is happening with your Company you will need to now the following:

A debt can be considered a total or partial “Bad Debt” when all the following conditions apply:

1. That a full year has elapsed since the accrual of the output tax without the payment of all or part of the debt having been received.

2. The fact that this has been recorded in the books of the Company.

3. The supplier or recipient of the operation acts as a entrepreneur or professional. If this is not the case, the tax base (amount before vat) should be higher than 300,00 €uros.

4. That the tax payer has claimed the debt through a lawsuit or through a notary requirement.

The amendment should be made within three months following the end of the one year period referred to in condition 1 above and contact should be made with the Tax Agency in the period specified by regulation.

On completion of the reduction in the tax base, this change will not be reversed even if the taxpayer should obtain the total or partial payment of the debt, unless the debtor is not acting in the capacity of an entrepreneur or professional.

Arcos & Lamers Asociados, Your accountant and tax adviser in Spain!. Accountants in Marbella, Málaga, Spain.

Marbella, April, 2013.