Invoicing Basics for Autónomos – How to Invoice Clients with IVA and IRPF
Create compliant invoices that satisfy Spanish tax requirements
As a self-employed professional (autónomo) in Spain, issuing correct invoices isn't just good business—it's a legal necessity. Your invoices are the primary documents that record your business transactions, support your tax filings, and build trust with your clients. This guide explains, in clear terms, every element you need on your invoice.
We'll cover what to include, how to calculate and apply IVA (Value Added Tax) and IRPF (withholding tax), and the best practices for recordkeeping. Whether you're invoicing a Spanish company or an international client, this guide ensures you're compliant with Spanish regulations and sets you up for smooth quarterly tax filings.
Note
1. Invoice Requirements
A compliant invoice must include all the essential details so that both you and the Spanish tax authorities (Agencia Tributaria) can clearly verify the transaction. Every invoice you issue should contain the following elements:
Your Information
The name you registered under (it can be your own name if you're a sole trader).
Your official business address (which might be your home address).
Your Spanish tax ID.
Your phone number and email address.
Invoice Details
Clearly state 'Factura' at the top.
Sequential numbering is mandatory for traceability.
The date when the invoice is created.
Client Information
Include your client's details.
For B2B transactions, the client's VAT number might be required.
Transaction Details
Provide a clear and concise description of what was provided. Include quantities, unit prices, and any relevant project or contract reference.
- Net Amount: The base price before taxes.
- IVA (VAT): Show the applicable IVA rate (usually 21%, or reduced rates of 10%/4% where applicable) along with the calculated IVA amount.
- IRPF Withholding: If applicable (typically 15% for most professionals or 7% for new autónomos), list this as a deduction. Indicate it as a negative amount.
- Total Amount Due: The final amount after adding IVA and subtracting any IRPF withholding.
Payment Terms
How you expect to be paid (e.g., bank transfer, PayPal, etc.).
Clearly state when the payment should be received.
Any notes on late fees or discounts if paid early.
Additional Information
You might include purchase order numbers, references to contracts, or a note stating 'Exento de IVA, Art. 20' if your service qualifies for an exemption.
Ensure your invoice is legible and professionally formatted, using clear fonts and proper spacing.
2. Charging IVA (VAT)
IVA is the consumption tax you must charge on taxable goods and services. Here's what you need to know about applying IVA:
What Is IVA?
IVA (Impuesto sobre el Valor Añadido) is a tax added to the net price of most goods and services in Spain.
- Standard Rate: 21% for most transactions.
- Reduced Rates: 10% applies to items like some food, hospitality, or cultural services; 4% applies to basic necessities like bread and milk in specific cases.
When to Charge IVA
If your business activity is subject to IVA, add the correct percentage to the net amount.
- If your service is IVA-exempt (as defined under Spanish VAT Law, e.g., certain educational or health services), do not charge IVA.
- For international B2B services, if you're registered in ROI (Registro de Operadores Intracomunitarios), you might invoice with 0% IVA under the reverse-charge mechanism.
How to Calculate IVA
Multiply your net price by the applicable IVA rate (e.g., €1000 × 0.21 = €210 IVA).
Clearly list the IVA line with the rate and the resulting amount. This transparency is key for tax filings.
3. IRPF Withholding
IRPF is the income tax prepayment that certain Spanish companies are required to withhold when paying you for services.
What Is IRPF Withholding?
IRPF (Impuesto sobre la Renta de las Personas Físicas) withholding is an advance on your income tax.
- Generally 15% for most professionals.
- A reduced rate of 7% applies for new autónomos during the initial period.
How IRPF Works on Your Invoice
Typically calculated as 15% of the net amount. For example, on a €1000 net invoice, the withholding would be €150.
Display the IRPF withholding as a negative line item. For example: 'IRPF 15%: -€150.'
The client pays this withheld amount directly to Hacienda on your behalf. When you file your annual tax return, the IRPF withheld is credited against your final income tax calculation.
When to Include IRPF
- Spanish businesses (companies, other autónomos)
- Professional associations or organizations
- Public administrations
- Individual consumers
- Foreign clients (non-Spanish entities)
Important Considerations
IVA is added on top of your net price, while IRPF is deducted from the net amount. They serve different purposes and must be shown separately.
Keep accurate records of the IRPF amounts withheld, as you'll need these figures when completing your annual tax return (Modelo 111).
Important Note
4. Invoice Example Layout
Below is an example layout to illustrate a compliant invoice:
[Your Business Logo]
SpanishTax – [Your Name or Business Name]
Address: [Your Address]
Tax ID: [Your NIF/NIE]
Phone: [Your Phone] | Email: [Your Email]
Factura Nº: 00123
Date: June 15, 2025
Bill To:
Client Name
Client Address
Client Tax ID (if applicable)
Description of Services:
- Freelance consulting services for May 2025 – 40 hours at €25/hour
Net Amount: €1000.00
Tax Details:
- IVA (21%): €210.00
- IRPF Withholding (15%): -€150.00
Total Amount Due:
€1000.00 + €210.00 – €150.00 = €1060.00
Payment Terms:
Payment via bank transfer within 30 days. Please include the invoice number in your payment reference.
Notes: Thank you for your business. For any questions, contact us at [Your Email].
5. Record Keeping
Maintaining accurate records of all invoices and related documents is vital for tax compliance and financial management.
Best Practices
Log each invoice with details such as date, invoice number, client name, net amount, IVA, IRPF, and total.
Keep digital and/or physical copies of every issued invoice and received purchase invoice. Spanish law requires retention for at least 4 years.
Reconcile your records with your quarterly IVA returns (Modelo 303) and annual summaries (Modelo 390) to ensure consistency.
Consider using dedicated invoicing software or a spreadsheet that automatically calculates IVA and IRPF. This reduces errors and saves time at tax season.
6. Conclusion and Best Practices
Creating professional, compliant invoices is a critical aspect of running your autónomo business. By ensuring that every invoice contains all the required information and accurately applies IVA and IRPF:
Remember: Consistency is key. Adopt a standard template for every invoice, keep meticulous records, and periodically review your invoicing practices to adapt to any changes in tax regulations. Proper invoicing not only simplifies your tax obligations but also helps you maintain clear financial records for your growing business.
7. Final Thoughts
Once you're comfortable with invoicing, you'll find that routine administrative tasks become second nature. This guide is just one part of our comprehensive resource for English-speaking expats in Spain. For more details on related topics—such as VAT registration, IRPF withholdings, and Social Security filings—please check out our other guides on SpanishTax.
Want to stay up to date?
Subscribe to our newsletter for Spanish tax tips, updates, and more.
Want to stay up to date?
Subscribe to our newsletter for Spanish tax tips, updates, and more.
Want to stay up to date?
Subscribe to our newsletter for Spanish tax tips, updates, and more.