Tax and invoicing glossary

Periodic comparison of the bank statement against the accounting records of invoices and expenses, to catch unrecorded receipts, duplicates, missing fees and balance differences before a period is closed.

Applies to: Global

A new invoice that corrects or cancels an earlier one. In Spain it is compulsory when the original breaks legal requirements, the VAT charged was wrong, or the taxable base changes later; it may be issued within four years of the tax falling due.

Applies to: Spain

An invoice issued, sent and received as structured data that software can process without manual re-keying. A PDF alone does not qualify. Each country sets its own format, delivery network and mandate dates.

Applies to: Global, Spain, Poland, Germany, Italy, France, Belgium

Special Spanish VAT regime for small retailers who are individuals: their suppliers charge them a surcharge on top of VAT, and they file no VAT returns for those sales. The surcharge rates are 5.2%, 1.4% and 0.5%.

Applies to: Spain

Structured XML e-invoice format defined by the Spanish administration. It is the format that is signed and submitted, through the FACe entry point, to public bodies when a supplier is required to invoice them electronically.

Applies to: Spain

Indirect consumption tax charged in the Canary Islands instead of VAT. It works like VAT, with output tax charged and input tax deducted, but at lower rates: a 7% general rate and 3% reduced rate, plus a zero rate, increased rates and a special rate.

Applies to: Spain

Percentage that the payer of a professional-services invoice holds back and pays to the tax authority on account of the professional income tax (IRPF). The general rate is 15%; a professional starting out applies 7% in the first year and the two that follow.

Applies to: Spain

Quarterly income-tax instalment payment (IRPF) for self-employed people and professionals under direct estimation. The payment is 20% of net income accumulated since January, minus earlier instalments and withholdings suffered. Some professionals are exempt.

Applies to: Spain

Periodic VAT self-assessment in Spain: the business subtracts input VAT from output VAT and declares the result. It is quarterly, due 1 to 20 April, July and October, and 1 to 30 January for the fourth quarter.

Applies to: Spain

Quarterly IGIC self-assessment under the general regime, filed with the Canary Islands Tax Agency by IGIC taxpayers. It is due within the first twenty days after each quarter, and throughout January for the fourth quarter.

Applies to: Spain

Mechanism under which the customer, not the supplier, accounts for the VAT on a transaction. The invoice is issued without VAT and with a reverse-charge note; the buyer declares the output VAT and, where entitled, the matching input VAT in its own return.

Applies to: Global, Spain

System run by the three Basque foral tax authorities (Araba, Bizkaia and Gipuzkoa) in which invoicing software signs each invoice, chains it to the previous one, adds a QR code and a TBAI identifier, and produces an XML file for the tax authority.

Applies to: Spain

Indirect consumption tax that a business charges on invoices and pays to the tax authority after deducting the VAT it has paid. In Spain the standard rate is 21%, with reduced rates of 10% and 4%; the Canary Islands apply IGIC instead.

Applies to: Global, Spain

Spanish regulation (Royal Decree 1007/2023) setting technical requirements for invoicing software so that records are intact, traceable and unalterable. Its VERI*FACTU mode adds optional automatic submission of every record to the tax agency.

Applies to: Spain