Invoicing and Tax regulation in Spain

Spain initiated the modernization of its transaction processes in 2015 by implementing mandatory B2G e-invoicing. Starting in July 2025, Spain will most likely extend this requirement, making e-invoicing mandatory for all B2B transactions, ensuring all businesses use certified invoicing software. While B2C and B2B e-invoicing are optional for now, many companies have chosen to transition earlier, recognizing significant savings in money, time, and reduction in manual errors, especially in tax reporting. Given the standard VAT rate of 21% and a corporate tax rate of 25% in Spain, minimizing errors is crucial to avoid increased liabilities and penalties. For comprehensive guidance on e-invoicing, tax regulations, and digital reporting in Spain, explore our detailed guide.

We are going to cover:

Invoicing Regulations in Spain

Electronic Invoicing Regulations

Tax Regulations

VAT Payments and Returns

E-invoice Requirements

Digital Reporting Regulations in Saudi Arabia

Penalties

Streamline Global Invoicing and Tax Compliance with Space Invoices

Invoicing Regulations in Spain

Invoicing regulations in Spain are under the purview of the Agencia Tributaria (AEAT), which is the Spanish Tax Agency. This authority oversees the invoicing requirements whenever goods or services are sold, including transactions with other businesses or consumers. For VAT-registered businesses, invoices must be issued to the customer by the 16th of the month following the provision of goods or services, or sooner upon customer request. Additionally, VAT-registered businesses are obliged to issue a VAT invoice for all taxable sales.

At a minimum, the invoice needs to include:

Date of Issue;

Unique and Sequential Invoice Number;

QR code;

Supplier Information: Name, address, and Tax Identification Number (NIF);

Customer Information: Name, address, and NIF number of the customer;

Description of Goods or Services;

Quantities and Unit Prices;

Additional Information: Any discounts, reasons for any exemption or non-application of VAT;

Total Amount and VAT Details: The total amount payable, excluding and including VAT, the total amount of VAT charged, and a breakdown of the VAT amount for each item where applicable.

Simplified Invoice

Simplified e-invoices are allowed in Spain for transactions where the total invoice amount does not exceed €400, provided the customer does not request a full invoice.

A simplified invoice has to include:

Date of Issue: The date when the invoice is issued.

Unique Invoice Number: A unique and consecutive number to identify the invoice.

Supplier Information: Name, address, and NIF number of the supplier.

Description of Goods or Services: A detailed description of the goods or services provided.

Total Amount Payable, Including VAT: The total amount payable, inclusive of VAT.

VAT Amount Payable: The amount of VAT included in the total payable amount.

Certified Invoicing Software

Starting July 1, 2025, 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.

Invoice Archiving

You have to archive invoices for a period of 10 years. This period starts from the end of the year in which the invoice was issued.

E-invoicing Regulations

In Spain, e-invoicing has been mandatory for B2G transactions since 2015. Starting in early 2026, Spain will most likely extend this requirement, making e-invoicing mandatory for all B2B transactions, ensuring all businesses use certified invoicing software.

Spain’s e-invoicing regulations align with Directive 2014/55/EU, which mandates public entities to be equipped to receive and process e-invoices that adhere to the European standard EN-16931. Furthermore, Spain participates in the PEPPOL network, enhancing standardized cross-border e-invoicing within the EU. To support these requirements, the Spanish government will ensure that businesses use certified software capable of generating, transmitting, and storing electronic invoices.

E-invoicing Process in Portugal

Taxpayers in Spain are required to register on the Agencia Tributaria (Spanish Tax Agency) portal. This platform facilitates the management of tax-related activities, including the submission of electronic documents. The process follows:

Completing a transaction: You must submit transaction details electronically immediately after completion.

Upon submission: The Spanish Tax Agency reviews the electronic document, which includes validating the transaction details and assigning a unique identification code known as the Código de Verificación Electrónica (CVE).

After validation: The taxpayer issues a receipt that includes the CVE and, where applicable, other security features like a QR code. This receipt serves as proof of the submitted and validated transaction.

The customer receives this receipt, which confirms the transaction.

Customers or other interested parties can verify the transaction: through a web application provided by the Spanish Tax Agency, ensuring transparency and accountability.

Portuguese Tax Authorities Responsible for E-invoicing

Responsibility for e-invoicing regulations in Spain lies with the Dirección General de Informática, Telecomunicaciones y Gestión del Conocimiento (DGTIC).

E-invoicing Formats

Spain's e-invoicing formats align with the European standard EN 16931. The system for e-invoicing is managed through FACe (Punto General de Entrada de Facturas Electrónicas).

E-invoicing formats commonly used in Spain:

Facturae	Nationally recognized standard for electronic invoices in XML format, widely used in Spain.
UBL (Universal Business Language)	Internationally recognized standard that includes a suite of XML-based business documents specifications.
PEPPOL BIS Billing 3.0	Internationally recognized standard, providing a unified XML-based specification for electronic billing.

E-invoice Validating

Ensure that your e-invoices adhere to the European standard EN 16931 as well as specific Spanish requirements. Further validation of e-invoices is mandatory in Spain, which includes the use of digital certificates.

It is mandatory to include a QR code on all e-invoices issued within Spain. This QR code facilitates immediate access to invoice details for both tax authorities and taxpayers, enhancing transparency and ease of verification.

Alongside the QR code, the CVE (Código de Verificación Electrónica), or electronic verification code, is another essential element of the e-invoice. The CVE, which is provided by the Spanish Tax Agency (Agencia Estatal de Administración Tributaria), serves as a critical identifier for the invoice.

Certified Invoicing Software

E-invoice Archiving

You are required to archive e-invoices for a minimum of 10 years, beginning from the end of the year in which the invoice was issued.

Tax Regulations

The standard VAT rate in Spain, known as Impuesto sobre el Valor Añadido (IVA), is 21% and is applicable to most goods and services. A reduced VAT rate of 10% is applicable to foodstuffs, non-alcoholic beverages, water supplies, some pharmaceutical products, hotel accommodations, and certain transport services. Furthermore, basic necessities such as bread, milk, cheese, eggs, etc; benefit from an even lower VAT rate of 4%.

Corporate Tax

The standard corporate tax rate in Spain is 25%. Small and medium-sized enterprises (SMEs) benefit from a reduced corporate tax rate of 15% on the first €300,000 of taxable profit for newly created entities during their first two tax periods.

VAT on Digital Products

In Spain, digital products including software, digital media, e-books, and online services are subject to the standard VAT rate. This rate is 21% across the entire country.

VAT Payments and Returns

In Spain, businesses are also required to file a VAT Return with the Spanish Tax Agency (Agencia Tributaria) to declare the VAT they have collected and the VAT they have credited for business purchases. The VAT Return should detail:

VAT collected on sales,

VAT credits for VAT paid on business purchases.

The net VAT amount, which is the difference between the VAT collected on sales and the VAT credits on purchases, is indicated on the VAT Return and must be paid to the Spanish Tax Agency. If the VAT credits exceed the VAT collected, the business can claim a refund or carry the amount forward to the next period.

The reporting frequencies are:

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.

The Spanish Tax Agency encourages the electronic filing of VAT Returns and Payments through its online portal (Agencia Tributaria).

VAT Registration 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.

E-invoice Requirements

In Spain, e-invoice requirements adhere to EU standards and demand components such as:

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;

For businesses with repeating customers, setting up recurring invoices can streamline the billing process by automating regular, automatic payments.

Utilizing invoicing software can significantly benefit businesses in creating, sending, and managing e-invoices in compliance with Spanish regulations. These tools not only help in generating professional invoices but also in streamlining the invoicing process, improving cash flow, and ensuring that payments are received on time.

See how Space Invoices can help.

Simplified E-invoice Requirements

You can issue simplified e-invoices for transactions where the total invoice amount, including VAT. For general transactions the total amount should not exceed €400 and for specific cases such as retail sales, services in ambulances the threshold is higher, allowing for simplified invoices up to €3,000.

Simplified e-invoices include:

Date of Issue

Unique Invoice Number

Supplier’s Identification: Name and Tax Identification Number (NIF)

Description of Goods or Services

Total Amount Payable, including VAT

VAT Rate Applied

Any applicable mentions for special regimes or corrections

Digital Reporting R

Businesses registered for VAT in Portugal are required to submit their VAT returns electronically. This can be done through the Portuguese Tax Authority's online platform, Portal das Finanças, using business software that integrates this feature, or through a tax agent. The VAT return should include detailed information on the VAT collected and the VAT paid during the reporting period.

SAF-T

SAF-T is not mandatory in Portugal.

Real-Time Reporting

Real-time reporting is mandatory in Spain under the Suministro Inmediato de Información (SII) system. This system, implemented on July 1, 2017, requires businesses to electronically submit detailed information about their invoices to the Spanish tax authorities within a short period. Specifically, businesses must submit data from their accounts payable (AP) and accounts receivable (AR) invoices within four days of issuing or booking the invoices. The SII system applies to large companies, VAT groups, and companies registered in the monthly VAT refund regime.

Data Breaches

If a data breach occurs, you must notify the Spanish Data Protection Authority (Agencia Española de Protección de Datos, AEPD) within 72 hours of becoming aware of the incident. If the breach poses a significant risk to individuals' rights and freedoms, affected individuals must also be notified without undue delay. This protocol ensures timely actions to mitigate any potential damage and uphold data protection standards.

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.

Streamline Global Invoicing and Digital Reporting with Space Invoices

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

You will be able to:

Utilize a single API for current and future worldwide compliance, including in Spain

Support and upsell your clients globally, including in Spain

Become the one-stop shop for current and future clients

Streamline processes to save time and reduce costs, while also eliminating manual errors

Rest assured all documents are properly archived and reported to the relevant authorities

Achieve rapid integration, typically completed in less than a week.

Having questions about how to achieve compliance in Spain?

We are here to assist.

This guide is provided by Space Invoices and does not constitute professional tax advice or opinions tailored to the specifics of any particular business or situation. Space Invoices does not accept responsibility for the accuracy or applicability of the content within this guide. Tax regulations, e-invoicing requirements, and digital reporting standards are subject to frequent changes and complex interpretations that require validation by qualified tax professionals. It is the user's responsibility to evaluate the relevance and accuracy of the information provided and to consult appropriate professionals. Space Invoices does not offer professional tax opinions or advice through this publication.

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