Intra-EU IVA: How to Invoice European Clients as a Spanish Freelancer

More and more freelancers in Spain invoice clients from other EU countries. There are specific rules. Here they are, simply explained.

The basic rule: reverse charge

When you invoice a company in another EU country, you charge 0% IVA. The buying company declares IVA in their own country. This is called the reverse charge mechanism.

Conditions for applying 0% IVA

1. Your client must be a business (not an individual). 2. They must have a valid EU VAT number (starts with two country letters: FR for France, DE for Germany, IT for Italy). 3. You can verify the number on the EU Commission's VIES system.

What if the client is a European individual?

For digital and electronic services, you must charge the IVA rate of the client's country of residence. For traditional professional services, Spanish IVA applies (21%).

What must the invoice include?

Amount without IVA, 0% IVA rate, the text 'Reverse charge per Article 44 Directive 2006/112/EC', and the client's EU VAT number.

Modelo 349: intra-EU transaction report

All invoices to European companies under reverse charge must be reported on Modelo 349. If the volume exceeds EUR 50,000 in a quarter, reporting becomes monthly.

In k-factu

Add the client with their country and VAT number. The system automatically detects when reverse charge applies and generates the correct legal text on the invoice.