IVA …don’t get caught out!

on the subject of IVA …don’t get caught out!...

Due in part to the state of the Spanish economy at the moment the powers that be are clamping down heavily on IVA fraud and the trend seems to be that they are targeting smaller businesses, especially, for some reason, businesses run by non-Spanish nationals.

IVA in Spain is like the VAT we all have to pay in the UK, and like the UK its law in Spain as too. Under Spanish Law all payments made to an electrician, plumber or builder – even media like JFM Radio – by law, they must provided you with an invoice that includes IVA. Basically, IVA is a tax that is applicable to all commercial activities.

IVA (Impuesto sobre el valor añadido) like VAT is an indirect, general consumption tax assessed on value, added to services and goods including advertising media, and is ultimately borne by the final consumer and it’s charged as a percentage of the price paid.

EVERY business must charge IVA at the point of sale (even if you are self employed or an agent) it and every consumer MUST pay it.

So, always get an invoice for payments made for services - like advertising - because you never when you’ll need them.