Invoicing and Tax regulation in Spain

Navigating Spanish evolving e-invoicing and tax regulations can be challenging. This guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.

In the guide, we will cover:

Regulations Timeline

Spanish E-invoicing Requirements (2025 Updated)

Tax Regulations

Digital Reporting

Penalties

Achieving Global Invoicing and Tax Compliance with Space Invoices

 

 

Regulations Timeline

A quick overview of all current and upcoming regulations that Spain mandates regarding e-invoicing and digital reporting. For a complete list of countries with mandatory B2B e-invoicing regulations, click here. For a comprehensive general guide to e-invoicing regulations by country, click here.

 

Regulations in Effect:

Mandatory e-invoicing for all B2G transactions,

Voluntary e-invoicing for B2B and B2C transactions.

 

Upcoming Changes to Croatian E-invoicing:

2027: Large businesses with a turnover exceeding €8 million must comply with mandatory B2B e-invoicing in Spain.

2028: Mandatory B2B e-invoicing extends to all businesses in Spain.

For more details, click here.

 

 

Spanish E-invoicing Requirements (2025 Updated)

In Spain, current regulations mandate e-invoicing for all B2G transactions. While B2B and B2C e-invoicing is voluntary for now, B2B companies will be mandated to issue e-invoices, starting in January 2027. This is a part of EU ViDA’s program, mandating all Europe to be e-invoicing compliant by 2030.

To support this transition, Spain has implemented:

The PEPPOL network

Directive 2014/55/EU

Platform FACeB2B

 

Governmental Body Responsible for E-invoicing

Ministry of Economic Affairs and Digital Transformation is responsible for e-invoicing regulations in Spain.

Click here to visit their official website.

With regulations, Ministry of Finance helps them with financial regulations related to e-invoicing.

Click here to visit their official website.

 

E-invoicing Formats

In Spain, e-invoices are typically exchanged using the XML format, usually in either UBL or PEPPOL BIS Billing 3.0. Businesses connect to FACeB2B; facilitating the exchange of electronic invoices between B2B and supports the Spanish government’s commitment to streamlined digital invoicing.

 

E-invoice Requirements

Invoices must be issued at the time of the supply and for taxable customers, they have to be issued within 30 days after the taxable event occurs. They can be issued in either electronic or paper form and must include the following components:

Unique and Sequential Invoice Number;

Date of Issuance;

Identification of the Seller and the Buyer: Full name, address, and Tax Identification Number (NIF);

Information about Goods or Services Provided;

VAT Information;

Total Amount Excluding VAT;

Currency;

Payment Terms: Including payment due date and any discounts;

Reference to the Legal Requirement for the Invoice;

Electronic Signature;

Time of Supply of Goods or Services;

Mandatory Legal Wording.

 

B2C Transactions:

Simplified e-invoices may be issued, which require less information than full invoices, but only if the total amount, including VAT, does not exceed €400.

Simplified Invoices Include:

 

E-invoice Archiving

E-invoices must be archived for a minimum of ten years.

 

 

Tax Regulations

Value Added Tax (VAT)

In Spain, the standard VAT rate is 21% and applies to most goods and services.

However, Spain also enforces reduced VAT rates:

10% rate: Applies to various foodstuffs, non-alcoholic beverages, water supplies, etc;

4% rate: basic necessities such as bread, milk, cheese, eggs, etc.

 

Corporate Tax

The standard corporate tax rate in Spain is 25%. A reduced tax rate of 15% applies on the first €300,000 of taxable profit for newly created entities during their first two tax periods.

 

VAT on Digital Services in Spain

Digital services in Spain are generally subject to an 21% VAT. Digital services that are subject to VAT include e-books, software downloads, music, movies, games, and other electronically supplied services.

 

 

Certified Invoicing Software

All businesses in Spain, regardless of size, must use certified invoicing software. The use of such software supports the electronic generation, transmission, and storage of invoices, promoting standardized digital communication of business documents. Non-compliance may result in penalties and fines, as part of Spain's broader digital transformation and anti-fraud strategy.

 

 

Digital Reporting

Ukraine has already introduced several digital reporting requirements, with more to come:

B2G e-invoicing is required for all companies;

B2B e-invoicing will become mandatory in 2027-2028;

Electronic filing of VAT Returns and for making payments.

Real Time Reporting is Mandatory

 

VAT Registration and Thresholds

There is no registration threshold in Spain. This applies to both, established and non-established businesses.

For non-EU businesses selling goods to consumers in Spain, the VAT registration threshold is €10,000 per annum.

 

VAT Returns and Payments

The reporting frequencies are as follows:

Monthly: Required for businesses with an annual turnover exceeding €6 million in the previous year, large taxpayers, and those under the REDEME (Monthly Refund VAT Registry). VAT returns must be submitted by the 20th of the following month.

Quarterly: Required for businesses with a turnover below €6 million. These reports must be submitted by the 20th of the month following the end of the quarter.

 

 

Penalties

Non-compliance with einvoicing can result in fines up to 0.5% of the total transaction value per invoice, with a minimum of €300 and a maximum of €6,000 per quarter-

Penalties for delaying the immediate supply of information (SII) are calculated at 0.5% of the invoice amount, with a quarterly minimum of €300 and a maximum of €6,000.

The fines for late submissions are ranging from €150 to €6,000 depending on the extent of the delay and the size of the business.

Non-compliance with invoicing requirements, such as failing to issue an invoice or issuing incorrect invoices, can attract fines ranging from €150 to €6,000 depending on the severity of the infraction.

 

 

Achieving Global Invoicing and Tax Compliance with Space Invoices

One way to comply with (e-)invoicing, tax, and reporting regulations in Spain is to use a provider like Space Invoices.

You will be able to:

Have one API for current and future global tax and invoicing compliance, including Spain

Save time and money with integration that takes less than a week

Support and upsell your clients worldwide, including Spain

Ensure all documents are archived and successfully reported to responsible institutions

Become a one-stop shop for current and future clients

Streamline processes and eliminate manual errors, saving time and money

Do you have questions about achieving compliance in Spain?

We are ready to help.

 

The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on January 24, 2025.

Looking to automate real-time reporting and tax compliance for Spain? Let's talk