VAT and IRPF

On a Spanish sales invoice two taxes with opposite signs coexist: output VAT (IVA repercutido), which you charge the customer and later settle with the tax office, and the IRPF withholding, which the customer withholds and advances to the tax office on your behalf. Aikount applies both per line and carries them to the matching models.

Output VAT#

VAT is a percentage on the taxable base of each line. The usual Spanish rates are 21% (standard), 10% and 4% (reduced), plus 0% or exempt operations.

• It is computed per line and grouped by rate.
• It is booked to the output VAT account (477).
• It feeds Modelo 303 (quarterly VAT) and the annual summary Modelo 390.

For intra-EU business (B2B) operations the invoice is exempt (IVAINTRA) and carries no VAT amount, but it is still reported on Modelo 349. See Customer regime.

IRPF withholding#

When you are a freelancer and invoice a company or professional, the invoice may carry an IRPF withholding: a percentage that the customer does not pay to you, but instead pays to the tax office on account of your income tax.

• It reduces the total to collect (the withholding is subtracted from the VAT-inclusive amount).
• It is a payment on account of your IRPF: you recover it when you settle.
• It feeds the withholding and IRPF models (for example the 130 instalment under direct assessment).

You charge VAT and later settle it; your customer pays the IRPF withholding for you. That is why VAT adds to the total and the withholding subtracts from it.

A worked example#

On a 1000.00 € base to a company, with 21% VAT and a 15% IRPF withholding:

From the invoice to the models#

Because every figure comes from your real accounting, the models reconcile with the issued invoices:

• VAT → Modelo 303 and 390.
• Withholdings / IRPF → the withholding models and the 130.

Aikount prepares these models; the filing with the AEAT is done by you and your accountant.