Holiday lettings: VAT invoice dissected

Raymundo LarraĆ­n Nesbitt, February, 11. 2019

Blog post copyrighted © 2019. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer – Abogado
11th of February 2019

 

In order to claim lenient landlord tax relief from the Spanish Tax Office that leads to a 70% tax mitigation from your tax bill on renting out, your VAT invoice must meet a series of requirements. In Spanish a VAT invoice is called a factura. Many suppliers will be highly reluctant to issue you with one (because they work off the books and do not submit any taxes). Others will hand you a factura just to keep you happy, but it will be missing key elements which make them void i.e. VAT is missing (true case, see examples below). A VAT invoice that misses out on key elements cannot be claimed for tax relief purposes.

By law, you must store all VAT invoices on which you are claiming landlord tax relief over the next 5 years. This is in case you are landed with a tax inspection, where you will be required to produce copies of all VAT invoices you have claimed tax relief on.

Today's tax blog is going to briefly go over the key elements which constitute a proper VAT invoice (factura).

The Spanish Tax Office lists these requirements in much detail on its web page. In this blog, we are going to simplify and only outline the main points that are required (see the blog’s inset photo, right, as graphical support):

Invoice examples, spot the differences!

Sample of a good VAT invoice

Sample of a non-acceptable VAT invoice

Anatomy of a VAT invoice (factura)

 

  1. Personal details of the invoice provider
  • Full name and surname.
  • Company name.
  • NIF number of trader/service provider; if a company, it’s CIF number.
  • Address.
  1. VAT invoice number. i.e. 37/2019
  2. Personal details of the invoice receiver
  • Full name and surname.
  • Company name.
  • NIF number.
  • Address.
  1. Service date.
  2. Service provided, brief description.
  3. Breakdown of Value Added Tax i.e. 21%
  4. Total amount to pay, including VAT on top.
  5. Company’s rubber-stamp seal (optional)

 

The Spanish Tax Office only accepts you claim tax relief against proper VAT invoices. If the VAT invoice you have been handed does not meet all the above requirements, it will not be accepted, and we will not be able to claim tax relief on your behalf.

We gently remind you that till tickets from supermarkets, commercial centres and petrol stations are not accepted by the tax office as tax-deductible. Only proper VAT invoices such as the one featured above.

 

We lower by 70% our client’s tax bills, on average, on renting out. What are you waiting for? Call or email us.

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €90/year

Holiday Rental Accounting Service (HRAS) 100/tax quarter

We are specialized in taxation

 

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, inheritance and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal & tax services available from Larraín Nesbitt Lawyers:

 

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Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

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