This is not the first time we have discussed this topic. And we can confidently say that it will not be the last time we talk about the types of invoices in Spain. We have been working in invoicing for more than two decades and, sometimes, we take for granted many terms and ideas that perhaps not everyone is familiar with or understands. For example, would you be able to say what types of invoices can currently be issued in our country without making mistakes? What happens if you issue an incorrect one? Or if you want to send several to the same customer? Can all of them be extrapolated to the new digital scenario in which we are immersed?
The different types of invoices in Spain
We have already defined in other blog articles of easyap what what an invoice is. Even so, it is worth remembering this when structuring this new content. Therefore, the definition of an invoice could be as follows:
"A note or account detailing the products or services sold in a sale transaction, recording the details of the agents involved, as well as the quantity, amount, and taxes involved in the transaction."
These documents are regulated both in Spain and throughout the rest of the world. The main reason is that they have a direct impact on the tax contribution of any individual or legal entity. For this reason, certain billing information that must always be provided on any invoice.
However, not all invoices are the same, nor do they necessarily contain the same information. In fact, based on their functions or formats, we find different types of invoices in the United States.
The simplified invoice
The best known and most popular invoice in Spain is the simplified invoice. The concept is based on what is known as an ordinary invoice. That is, the one that is issued in any common purchase and sale transaction and contains all the necessary legal information.
However, the nuance lies in the name itself. Simplified invoices , less information is recorded than on any ordinary invoice. Is this legal? Yes, since the Invoicing Regulations recognize and include the term. This term replaces what we have been calling a purchase receipt until now.
Likewise, a simplified invoice is understood to be one that used to deduct a company's expenses and, for this purpose, only includes the issuer's tax information. In other words, it is not necessary to add the recipient's tax information to a simplified invoice.
On the other hand, although it is a type of ordinary invoice, it has several specific differences. Without going any further, simplified invoices, compared to ordinary invoices:
– Does not require recipient details.
–– They must include the total consideration, including taxes, but it is not necessary to break it down (as is required for ordinary invoices).
– It is not mandatory to include the VAT tax amount.
– They should only reflect the type of goods delivered or services provided, without describing or detailing the transaction.
As for their use, in principle they can only be used for transactions where the amount does not exceed 400 euros, including VAT. However, there are some exceptions where the amount can reach €3,000.
Full invoice
In turn, within what we have classified as ordinary invoices, and unlike simplified invoices, we have complete invoices. These are documents that detail in depth everything that needs to be recorded in a commercial transaction. Likewise, a complete invoice will include all the items listed below:
– The date of issue.
–– The expiration date.
– The series or numbering, which must be done correlatively.
– The company name of both parties. That is, both the sender's and the recipient's. In addition, information such as a phone number or email address should be included.
– The tax identification number of all parties involved in the transaction.
– The concept, which is where what is being traded in the transaction is described.
– The net amount of the product or service. If there is more than one transaction on the same ordinary invoice, you will have to itemize each one and add the amount of each separately.
– The tax liability. Normally, this involves applying both VAT and income tax to the invoice.
– The total amount, which is calculated by adding the net amount and the tax amount.
– The account number. If payment is made by bank transfer or deposit, the issuer must include the account number to which they want the payment to be made on the complete invoice.
The fact is that with a complete invoice, the note itself will be much longer, but you can use it in any kind of commercial transaction.
Pro forma invoices
A third type of invoice in Spain and other countries is known as a pro forma invoice. It functions as a draft and is issued so that the buyer knows the details of a transaction. They are usually issued before the sale is concluded.
Unlike other types of invoices, proforma invoices have no legal, accounting, or tax validity. They are not included in the Invoicing Regulations and will not be recorded in any company's accounts or submitted to the Tax Agency.
However, they are useful in certain cases. On the one hand, they assure the buyer that the transaction will be carried out. On the other hand, it is a document that can serve as collateral for other transactions. Without going any further, when financing a car or studies, there are banks that request and accept a pro forma invoice for the vehicle or course to be purchased in order to grant the financing.
The recaps
Summary invoices are invoices that combine several invoices for transactions between the same company and customer or suppli summary invoices combine several invoices for transactions between the same company and customer or supplier. However, they can only include transactions that have taken place within a calendar month. They streamline the invoicing process by simplifying the company's administrative and accounting processes.
When talking about recapitulative invoices, it is important not to confuse them with another type of invoice in Spain: the recurring invoice. The latter is sent to a customer who makes regular payments, always for the same amount, and is issued repeatedly every so often, if you'll pardon the redundancy.
Finally, there is another issue to consider when discussing summary invoices. They can replace a group of ordinary and simplified invoices. However, for simplified invoices, the total amount cannot exceed €3,000, and they are not permitted for all sectors.
Correction
The last type of invoice commonly used in Spain is the corrective invoice. They are very useful and necessary for correcting ordinary invoices. How or in what situations?
– Add incomplete information.
– Correct any incorrect information.
– Indicate a return.
– Indicate a cancellation of an order.
– Because the terms have been renegotiated the terms of the regular invoice have been renegotiated.
– Because there has been a change in tax regulations.
– To recover VAT from an ordinary invoice that has already been issued but remains unpaid.
Corrective invoices are therefore are necessary to make any modification or adjustment, since it is not permitted by law to modify an ordinary invoice that has already been issued. In turn, they must meet three requirements:
- They must have their own numbering, which will be different from that of ordinary invoices.
- You must indicate which original invoice is being modified.
- You must also include the reason for and details of the correction being made.
At the same time, the issuer must clearly communicate that it is a corrective invoice. In addition, as many corrective invoices as necessary may be issued.
Why choose electronic invoicing?
Despite name changes and legal technicalities, these types of invoices have always existed in Spain. Every company has had to work with them from day one, even if only with the simplified versions.
However, we are currently in a new scenario. Now everything is digital, including the process of issuing, receiving, and managing invoices. Likewise, electronic invoicing is a reality , and all these types of invoices in Spain and the rest of the world are already being issued electronically.
Why? Because of the advantages offered by technology for accounting and auditing and for advantages such as those we offer you expert companies in digital invoicing such as easyap:
–– Automating a complex process and which, analogically, takes a lot of time and personnel and material resources.
–– Cost savings through optimization of time and equipment.
– Better communication with customers and suppliers regarding the status of invoices.
– Greater fiscal and tax control, as solutions such as ours offer connection and communication with programs such as SII, SILICIE, or TicketBAI.
– Reduced environmental impact, as everything is managed and stored in the cloud, reducing the use of paper and other materials.
All these advantages of electronic invoicing are precisely what you can take advantage of with a solution like ours. Software that also allows you to manage other areas of your business that impact your accounting. For example, employee expenses. Want to know more? We'll tell you all about it.
