VAT
VAT is the tax that raises the most questions when you start out. We explain it in plain language and take care of declaring it for you.
What it involves
VAT (IVA) is a tax you charge your clients on each invoice and then pay to the Tax Agency (Hacienda). In return, you can subtract the VAT you pay on your business expenses. As a self-employed person, you have to add it correctly to your invoices, keep your expense invoices and declare it periodically. Please note: VAT does not apply in the Canary Islands, which have their own tax, IGIC.
Is this your case?
- You don't know whether your activity is subject to VAT or exempt, for example some training or healthcare services.
- You have a shop and have been told about the equivalence surcharge (recargo de equivalencia), but you don't know what it means.
- You sell goods or provide services to clients in other countries and don't know whether you should charge them VAT.
- You have a large VAT bill and think you have not deducted all your expenses.
How we help
We study your activity and tell you which VAT regime applies to you and how you need to invoice. We review the invoices you issue and receive, check which VAT you can deduct and prepare your periodic returns and, when due, the annual summary. If you work in the Canary Islands, we handle IGIC from our offices on the islands. We explain everything in plain words, without unnecessary jargon. We can help you in Spanish, Arabic, Tamazight, French and English, at our offices in Tenerife, Gran Canaria, Málaga and Barcelona or online, wherever you are in Spain.
VAT is declared with your quarterly tax returns, and to make sure everything adds up, we help you with accounting.
Frequently asked questions
- What is the difference between output VAT and input VAT?
- Output VAT (IVA repercutido) is what you charge your clients on your invoices, and input VAT (IVA soportado) is what you pay on your business purchases and expenses. In your return you subtract one from the other and pay or offset the difference.
- What should I do if I have issued an invoice with the VAT calculated wrongly?
- It is corrected with a corrective invoice (factura rectificativa), which cancels or amends the previous one. It then has to be reflected in the return for the relevant period. We help you do it properly.
- If I sell to clients in my home country, do I charge them VAT?
- It depends on whether the client is a business or a private individual and whether their country is in the European Union or not. Sales abroad usually have special rules. We look at it according to your case.
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A first conversation — confidential and without obligation — to understand whether we can help, and how.
We speak Spanish, Arabic, Tamazight (Berber), French and English.