Duty to Bill

By: Josep Navarro

Duty to Bill in Spain

The obligation for business people and professionals to invoice is stated in article 29.2.e) of the General Tax Law 58/2003 of 17 December (Official State Gazette published on 18-12-2003), in article 164, section One, 3rd of Law 37/1992 of 28 December on VAT (Official State Gazette published on 29-12-1992) and in article 2.1 of the Regulation on invoicing duties approved by the first article of Royal Decree 1619/2012 of 30 November (Official State Gazette published on 01-12-2012).

Employers and professionals are under the obligation to issue an invoice and a copy of it for the delivery of goods and rendering of services that they carry out in the performance of their activity, and to keep a copy of it. They must also issue invoice in the case of advanced payments, except for exempt Intra-Community deliveries of goods.

In any case, employers and professionals are under the obligation of issuing an invoice in the following cases:

* When the recipient is an employer or professional and acts as such.
* When the recipient of the duty requires it for the exercise of any right of a tributary nature.
* Exports of goods exempt from Value Added Tax (except the ones carried out in duty-frees).
* Intra-Community deliveries of goods exempt from Value Added Tax.
* When the recipient is a Public Administration or a legal person who does not act as employer or professional.
* Some deliveries of goods aimed for installation or assembly before being made available, when the said installation is finalised in the territory of application of the tax.
* Distance sales and deliveries of goods subject to Special Taxes, when they are understood to have been carried out in the territory of application of the tax.

In cases of taxpayer reversal, when who carries out the operation is an employer or professional not established in the Community, the recipient must keep the accounting receipt of the operation. if the operation was carried out by a taxpayer established within the EU, the recipient must have the original supplier's invoice containing the requirements collected in article 226 of Directive 2006/112/EC of the European Council, dated 28 November 2006 (VAT Directive).

According to article 2.4 of the Regulation on the duties related to invoicing, any document that supports the book entry of the operation shall be considered a receipt when the person who carries out the operation is an employer or professional not established in the Community.

Spanish tax questions