Comprehensive Guide to VAT in Spain: Invoices, Tax Rates, and Deductions

Posted on May 18, 2024 in Law & Jurisprudence

INVOICE

A document that proves legal supplies of goods and services made. Prestaciones “Businesspeople and professionals are required to issue and deliver invoices, must maintain a copy of these and also must issue an invoice in the case of payments, except for supplies of goods.”

Assumptions of Issue of Invoice Required:

• When the recipient is a businessman or professional acting as such.
• When the recipient so requires.
• Exports of goods exempted from VAT.
• Intra-Community deliveries of goods exempted from VAT (i.e., shipments of goods to EU member states).

Expeditions to the Obligation of Bills:

• Those made by retailers to which they would receive an equivalent surcharge regime.
• VAT exempt transactions (except medical and health services).
• Those made by taxpayers who are taxed in the simplified regimen. VAT: Trading k authorize the tax.

General Content of the Bills:

• Number and, if appropriate, series.
• Name and surname or company name.
• No. of Fiscal identifications.
• Address of consignor and consignee.
• Description of operations.
• Type or rates applied to transactions.
• Tax, that should be entered separately.
• Date of issue.

No signature is required by the shipper or the dispatch room. Amounts may be expressed in any currency. Invoices may be issued in any language.

Expeditions to the General Content of the Bill:

In operations for those who are not entrepreneurs or professionals, it is not necessary to consign the recipient’s identification data if the consideration is less than 100, excluding VAT, or if, being higher, so has authorized the tax.

Bill Summary:

Can be included on one bill for operations carried out on different dates for the same addressee, which underwent the same calendar month.

Substitute Documents of the Bills: Tyche:

When imported not exceed €3000, the invoices can be replaced by tickets or copies of them:

• Retail
• Sales and ambulance services and the consumer.
• Dance halls and nightclubs.
• Hairdressing and beauty salons.
• Video store services.
• Dry cleaning and laundry.
• Use of toll roads.

Minimum Content of the Tickets:

• Number, and where appropriate, series. The numbering must be correlated.
• Tax ID, name or business name and address of the consignor.
• Tax rate or the words “tax included.”
• The total consideration.

Simplified System. Extension and Content of the Bills:

• Date of issue.
• ID required to permit issue.
• Identifying the type of goods supplied or services rendered.
• Tax rate or data to calculate it.

Bills Issued by Third Parties:

• There must be a prior agreement in writing.
• Each invoice must be accepted by the employer or professional for whom it has carried out the operation, within 15 days from receipt of the invoice.
• As rejected bills within x are not widespread.

Deadline for Issue and Submission of the Bill:

Duplicate and Copies of Bills:

• If the same operation there is more than one recipient.
• In the event of loss of the original.

In all doubled must contain the expression “duplicate.” In all copies must contain the words “copy.”

Storage of Invoices, Substitute Documents, and Other Documents:

• Bills and substitute documents received.
• Copies or matrices of bills issued and copies of documents replaced. issued.
• The receipts supporting the regime of special rebates agriculture, livestock, and fisheries.
• Documents evidencing payment of tax on imports.

Supplies Costs

What they are billed separately from the goods because he has lost so orally or in writing by the buyer.

Carriage:

Taxed at 16%. The carrier shall issue the consignment note on behalf of the purchaser concerned.

Insurance:

You are exempt. The insurance company shall issue an invoice to the buyer.

Trade Discount:

It is a corporate business policy for the promotion of products or discounts or offers. It is estimated that one percent of the price of the products is discounted.

Purchase Volume Rebates:

Apply when you buy large quantities of merchandise. Applied on the gross amount of the products, i.e., about the same amount that applies to the trade discount.

Prompt Payment Discount:

This discount is made if payment is in cash. It is applied to the net amount resulting from applying the trade discount and rebate.

Bills and Rectifier Documents:

• When not meet any of the requirements imposed on the content.
• When circumstances arise resulting in the modification of the tax base.
• Due to inadequate fixation of the tax charged.

VAT Registration Books:

Seats and annotations can be made on separate sheets which are then sequentially numbered and bound to form books. When a taxable person has several establishments, different books may be kept for each one of them, provided that the seats are summarized for each book transferred to a general register that is kept in the tax residence of the taxpayer.

Record Book of Bills Issued:

Are entered one at a time, serially by date and numbering, indicating the number, date, recipient, taxable base, tax rate, and tax charged. Entries can be replaced by individual summary seats:

• Are dispatched the same day and numbered correlatively.
• That they apply the same VAT rate.
• That we are documents issued with compulsory identification of the recipient.
• The operations are carried out within the same calendar month.

Register of Bills Received Book:

Individual entries can be replaced by a summary global entry provided that: the invoices have been received on the same date.

• The individual amount does not exceed €500, excluding VAT.
• The total amount of operations made by the same supplier does not exceed €6,000, excluding VAT.

VAT:

Value-added tax is an excise tax that taxes levied on consumption and supply of goods or services incurred by businessmen or professionals, so on imports and supplies of goods.

Active Business: Professional:

a) Professional activity is exercised by a natural person made primarily of services. b) Professional economic yields obtained with the exercise of his profession, self-organized by means of production, human resources, or both. c) Professionals often have their own statutes that mark rights and also obligations.

Entrepreneurs:

a) Entrepreneurs are individuals, companies, or entities engaged in economic activities and derive income from these activities. b) Business in question may engage the services of professionals who they believe most appropriate.

The Taxable Event:

• The delivery of goods and services affected by businessmen and professionals.
• Community acquisitions made by businessmen and professionals. Individuals should only liquidate VAT on new means of transport.
• Imports of goods for both entrepreneurs and professionals as well as individuals.

VAT International Trade:

Community transactions can be:

• Community transactions: the merchandise out of Spain to an EU member state.
• Community acquisition: the goods arrived in Spain from another EU Member State.

Imports:

Permanent or temporary entry of products from third countries outside the EU, the VAT must be cleared through customs.

Exports:

Product shipments to third countries not members of the EU. Such operations are exempt, i.e., that does not charge VAT on the invoice.

The Taxpayer:

Are entrepreneurs and professionals who make taxable supplies. The taxpayer must be fully passed on to the purchaser or VAT taxpayer who is supporting it.

Transactions Not Subject to VAT:

• The interviews of money by way of compensation or payment.
• The supply of printed advertising matter or objects of no commercial value.
• Services provided by partners of associated work cooperatives.

Exemption:

Tax benefit certain operations which are not taxed even though they are subject to it. After the exemption is a tax liability, so that should not be confused with no restraint. In practice, the exemption means that there are businessmen and professionals who cannot charge VAT on their invoices, although if supported on your purchases. Classes:

E. Limited:

Surge in domestic transactions performed by businessmen or professionals who are not subject to VAT, may not deduct VAT in their acquisitions.

E. Total:

There are no entrepreneurs and professionals who can upload their VAT bills, but the contractor or professional can deduct VAT on these transactions related acquisitions:

• Exports.
• Intra-Community supplies of goods.
• Items to Ceuta, Melilla, Canary Islands.

Internal Operations Exempt:

• Medicine and Health
• Education
• Financial Operations.
• Insurance Operations.
• Supply of buildable land and rustic.
• Second and subsequent delivery of buildings.

Tax Base:

Total amount of the consideration or provision of services of the transactions subject to VAT. On the base rate applies positive, which is obtained with the VAT.

Concepts to be Included in the Tax Base:

• Commissions, freight, transport, insurance.
• Subsidies linked to transactions subject.
• Packagings charged, but are likely to return.
• Interests for delays and postponements in payment.

Items Not Included in the Tax Base:

• Discounts to previous or simultaneous operation.
• The supplied justified-requisites: must be a prior mandate, verbal or written. Bills should be issued to the buyer.

Imports in Tax Base:

• Taxes, import duties, and other charges with the exception of VAT.
• Incidental expenses such as fees, packaging, transport, insurance to the place of destination in the EU.

VAT 16%:

• Supplies of goods and services for services rendered.
• Acquisitions supplies of goods.
• Imports

Tax 7%:

Delivery, or importation of intra-acquisitions:

• Nutrition products for people or animals, except alcoholic beverages.
• Water for human consumption, animal or for irrigation.
• Flowers, ornamental plants and seeds alive.

Services:

• Transportation of passengers and luggage.
• Exhibitions and trade fairs.
• Funeral services.

VAT 4%:

• Bread flour bread and cereals for their preparation.
• Milk, eggs, cheeses.
• Books, newspapers, and magazines.
• Medicines for human use.

Deductions:

Businessmen and professionals who are subject to VAT can be deducted from tax to their customers the taxes charged on their acquisitions

Deductible Contributions:

You can only deduct input operations that are directly and solely related to their business or professional. 1 WHICH ARE NOT PROPERTY INVESTMENT OR SERVICES: deduct to input tax services property or be used directly and exclusively in the business or professional activity. Are not deductible VAT borne by the property acquisitions that used in work and other activities. 2 INVESTMENT GOODS: PARTIALLY DEDUCTIBLE CONTRIBUTIONS ARE SUPPORTED IN THE USE OF OR ACQUISITION of property used in entrepreneurial or professional activity and other activities. Applicable to this need for proof of affectation.

Investment Property:

Physical movable bins, livestock or real estate which by its nature and functions are typically intended to be used for a period exceeding one year as work tools or means of exploitation.

Do Not Consider Investment Property:

Any acquisition good whose value is less than €3,005.06.

• Clothes for work.
• Accessories and spare parts.
• Packaging, although reusable.
• The execution of work to fix other investment goods.