VAT invoice dissected

Raymundo Larraín Nesbitt, February, 11. 2019

By Raymundo Larraín Nesbitt
Lawyer – Abogado
11^thof February 2019

Whether you are selling property or want to claim landlord tax relief from the Spanish Tax Office (which leads to a 70% tax mitigation from your tax bill on renting out), your VAT invoice must meet a series of requirements. I collate them all below.

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.

Anyone handing you an invoice without VAT is not tax-deductible. Make no mistake, you are in fact paying for that other person’s tax when you are not handed over a VAT invoice. I don't know about you, but I've never fancied subsidizing other people's taxes...

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)**

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.

VAT invoice number. i.e. 37/2019
Personal details of the invoice receiver

Full name and surname.
Company name.
NIF number.
Address.

Service date.
Service provided, brief description.
Breakdown of Value Added Tax i.e. 21%
Total amount to pay, including VAT on top.
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 to book an appointment.

Tax & legal services available from Larraín Nesbitt Lawyers:

Non-Resident Income Tax (Fiscal Representation) from €90
Holiday Rental Accounting Service (HRAS) from €100
Registration of Holiday Homes (Andalusia)

Holiday lettings-related articles

Holiday Rental Laws in Spain – 8th of March 2015
Non-Resident Taxes in Spain – 8th December 2015
Holiday Rental Laws in Andalusia (Decree 28/2016) – 8th of February 2016
Renting in Spain - Landlord´s Taxation – 8th of January 2017
Holiday Home Taxation in Spain – 8th of July 2017
Holiday Rentals in Andalusia Made Easy – 3^rd July 2017
Non-Resident Income Tax – 8^th December 2017
Holiday Rental Taxation in Spain – 8th July 2018
Renting in Spain: are you still overpaying income tax every quarter? – 16^th October 2018
You are taxed at source on renting out in Spain – 30^th November 2018
Did you get an email from AirBnb over your Spanish tax details? – 21st December 2018
Important information from the Spanish Ministry of Finance – 7^th January 2019
Holiday lettings: “Con factura, por favor.” – 21st January 2019
Holiday lettings: VAT invoice dissected – 11th February 2019

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.