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Invoicing from Spain

Spanish VAT (IVA) guide for service businesses

21%

Standard Rate

10%

Reduced Rate

ES

VAT Prefix

IVA

Local Name

VAT Registration in Spain

In Spain, VAT is called IVA (Impuesto sobre el Valor Añadido). You register with the Agencia Tributaria (AEAT) by submitting form 036 or 037.

Autónomo Status

Self-employed professionals (autónomos) must register for IVA from their first invoice. Since 1 January 2025, Spain participates in the EU-wide SME VAT exemption scheme under Directive 2020/285, which allows small businesses below a national threshold to be released from certain VAT obligations.

Additionally, certain professional activities may be exempt from IVA.

Special Territories

The Canary Islands use IGIC (7%), and Ceuta/Melilla use IPSI (different rates). These territories are outside the EU VAT area. This guide covers mainland Spain and the Balearic Islands.

VAT Rates

Rate type	Percentage
Standard	21%
Reduced	10%
Super-reduced	4%

For the full list of reduced rate categories, see the European Commission VAT rates reference.

Invoice Requirements (Factura)

Spanish invoices must include:

Your details

1 Business name and address

2 NIF/CIF (tax ID) or NIF-IVA

Client details

3 Client name and address

4 NIF (Spanish) or VAT number (EU)

Invoice details

5 Sequential invoice number

6 Invoice date (fecha de expedición)

7 Description of services

Amounts

8 Tax base (base imponible)

9 IVA rate and amount

10 Total including IVA

IRPF Retention (Autónomos)

When invoicing Spanish companies, autónomos must typically include IRPF retention (withholding tax) of 15% (7% for new autónomos in their first 3 years).

The client withholds this amount and pays it to AEAT on your behalf.

Cross-Border Invoicing

To EU Businesses (B2B)

For B2B services to other EU countries, the inversión del sujeto pasivo (reverse charge) applies. Invoice at 0% IVA.

Required invoice note

"Operación no sujeta por reglas de localización. Art. 69.Uno LIVA."

You must validate their VAT number via VIES before applying reverse charge.

To EU Consumers (B2C)

For most services to consumers in other EU countries, charge Spanish IVA (21%). For digital services, you may need to register for OSS and charge the destination country's VAT rate.

Outside the EU

Services to clients outside the EU are not subject to IVA. Invoice without IVA.

Required invoice note

"Operación no sujeta a IVA por reglas de localización. Art. 69.Uno LIVA."

How Invoxo handles this

Invoxo validates EU VAT numbers via VIES automatically when you add a client. Based on the validation result, it applies the correct inversión del sujeto pasivo treatment for EU B2B sales. All required notes are added to your facturas automatically.

Learn more about VIES validation →

NIF-IVA Format

Spanish VAT numbers follow the format: ES + 9 characters. The first and last characters may be a letter or digit, depending on the entity type.

Example

ESA12345678

The format varies based on entity type: companies use a letter prefix (A, B, etc.), while individuals use their DNI/NIE format.

Common questions

What is the NIF-IVA? ⌄

The NIF-IVA is your Spanish VAT identification number for EU transactions. It's your NIF (tax ID) with the ES prefix. You need this for VIES validation and cross-border B2B invoicing.

How does inversión del sujeto pasivo work? ⌄

Inversión del sujeto pasivo (reverse charge) applies when you invoice B2B services to other EU countries. You invoice at 0% IVA and the client accounts for VAT in their country.

Are there special rules for the Canary Islands? ⌄

Yes. The Canary Islands use IGIC instead of IVA, with different rates. Ceuta and Melilla have IPSI. These territories have separate VAT systems from mainland Spain.

What invoice numbering is required? ⌄

Spanish invoices must have sequential numbering within each series. You can use multiple series (e.g., for different business lines) but each must be sequential without gaps.

Disclaimer: This guide covers common scenarios for service businesses invoicing from Spain. For complex situations, confirm requirements with your asesor fiscal.