Country Guide

How to invoice in Spain

Spain combines strict invoicing rules with a real-time tax reporting system called SII. Add regional variations like TicketBAI in the Basque Country, and you have a system that rewards careful attention to detail.

Why Spanish invoicing rules matter

Spain's Agencia Tributaria (Tax Agency) enforces detailed invoicing requirements through the Reglamento de facturación (Royal Decree 1619/2012). Larger businesses must report invoices in near real-time through the SII (Suministro Inmediato de Información) system. The Basque Country and Navarra operate their own tax regimes with additional requirements like TicketBAI. Spain is also rolling out mandatory B2B e-invoicing under the Ley Crea y Crece, which will phase in starting with large companies. Whether you are a freelancer (autónomo) or a corporation, understanding these rules ensures your invoices are valid and your tax filings stay clean.

Key tax and invoicing facts

IVA rates
Standard rate is 21%. The 10% rate applies to food, passenger transport, hospitality, and housing renovation. The 4% super-reduced rate covers bread, milk, fruit, vegetables, books, medicines, and social housing. The Canary Islands use IGIC (7% general rate) instead of IVA.
Tax identification
Spanish businesses use a NIF (Número de Identificación Fiscal). For individuals, this matches the DNI number. Companies receive a NIF starting with a letter (formerly called CIF). For intra-EU operations, the NIF-IVA adds the ES prefix. The NIF is required on all invoices.
SII real-time reporting
Companies with annual revenue over 6 million EUR, large groups, and those in the monthly VAT refund register must report invoices to the Agencia Tributaria via SII within 4 days of issuance. The system provides near real-time visibility into VAT transactions and reduces the need for annual summary returns.
TicketBAI (Basque Country)
The Basque provinces (Álava, Bizkaia, Gipuzkoa) require TicketBAI, a system that chains invoices cryptographically to prevent fraud. Each invoice includes a QR code and a digital signature linked to the previous invoice. TicketBAI is fully operational across all three provinces since 2024.
Common payment methods
Bank transfer (transferencia bancaria) is standard for B2B invoicing. Domiciliación bancaria (SEPA direct debit) is common for recurring payments. Bizum is increasingly popular for smaller B2B and B2C transactions. Credit cards are used mainly in consumer-facing scenarios.
IRPF withholding
Freelancers (autónomos) and certain professionals must include IRPF (income tax) withholding on their invoices to Spanish businesses. The standard rate is 15%, reduced to 7% during the first three years of activity. The client withholds this amount and pays it to the Agencia Tributaria on the freelancer's behalf.

Required invoice fields in Spain

  • Full name/company name and address of the supplier
  • Full name/company name and address of the customer
  • Supplier's NIF (Número de Identificación Fiscal) or NIF-IVA for EU operations
  • Customer's NIF or NIF-IVA (for B2B and intra-EU transactions)
  • A unique, sequential invoice number within the series
  • Invoice issue date
  • Date of supply or service (if different from issue date)
  • Description of goods or services supplied
  • Quantity and unit price (net) per line item
  • Applicable IVA rate per line item (21%, 10%, or 4%)
  • Net amount (base imponible), IVA amount, and gross total
  • Any applicable equivalence surcharge (recargo de equivalencia) where required
  • IRPF withholding percentage and amount (for applicable professional invoices)
  • Reference to IVA exemption where applicable (Article 20 or 25 of Ley IVA)
  • Payment terms and bank details (IBAN)

Questions

Do I need to register for IVA in Spain?

If you carry out taxable economic activities in Spain, you must register for IVA with the Agencia Tributaria. There is no small business VAT exemption in mainland Spain. All autónomos and companies must charge IVA from day one. In the Canary Islands, IGIC applies instead, and Ceuta and Melilla have IPSI.

What is the Facturae format?

Facturae is Spain's structured electronic invoice format, an XML-based standard required for invoices to public administrations through the FACe portal. The current version is Facturae 3.2.2. For B2B e-invoicing under the Ley Crea y Crece, Spain will accept both Facturae and European Norm (EN 16931) formats.

When does mandatory B2B e-invoicing start in Spain?

Under the Ley Crea y Crece (Law 18/2022), mandatory B2B e-invoicing will phase in once the implementing regulations are finalized. Companies with revenue over 8 million EUR are expected to comply first, with all businesses following within one to two years. The exact timeline depends on secondary legislation expected in 2026.

What is the recargo de equivalencia?

The recargo de equivalencia is a special surcharge applied to retail businesses that are individual entrepreneurs (not companies). Rates are 5.2% on the 21% IVA base, 1.4% on the 10% base, and 0.5% on the 4% base. Suppliers must add this surcharge to invoices when the buyer is subject to this regime. The retailer does not file IVA returns in exchange.

How long must I keep invoices in Spain?

6 years under commercial law (Código de Comercio, Article 30). For tax purposes, invoices should be kept until the assessment period expires, which is typically 4 years from the filing deadline. In practice, keeping invoices for at least 6 years covers both requirements. Digital storage is permitted if authenticity and integrity are guaranteed.

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