Issuing invoices to a foreign client for the first time can be a mixed feeling of satisfaction and responsibility. It is a milestone on the entrepreneurial path, but it also requires a lot of attention.
For this reason, you must consider some legal requirements . In addition, you should follow certain tips to ensure the commercial and financial success of your first steps abroad.
When invoices must be issued to a foreign client in accordance with Spanish regulations
With more than one country involved, it is necessary to consider which rules apply for invoicing. The invoicing regulations, in their article 2.3 , subject the following operations to Spanish rules :
Those understood to be carried out in the territory of application of VAT , with some exceptions.
Those of the special VAT djibouti email list regime that applies to distance sales and certain domestic supplies of goods and services, provided that Spain is the member state of identification. These special regimes include several
one-stop shops, which are very important in electronic commerce . On the other hand, the member state of identification is defined for each regime and is usually the one in which the headquarters or establishment is located.
Certain cases in which the transaction is not deemed to have been carried out in the territory of application of VAT , but the person carrying it out has some connection with said territory.
The language and currency of the invoice
When issuing invoices to a foreign client, you must take into account these two rules :
You can issue them in any currency . However, the amount of VAT charged must be expressed in euros.
You can also choose any language . However, for any tax investigation, the Administration may ask you for a translation into one of the official languages in Spain.
Aspects to consider when billing abroad
Selling outside your country is one of the most common starting points for going abroad. In this sense, the experience of the first sales contracts and invoices will be very enriching. You will surely learn lessons that you will transfer to other facets of the internationalization process. To do this, you must pay attention to some aspects.
The prior analysis of an operation abroad must be even more thorough than that carried out for sales and provision of services in our own country.
Indirect taxation
The three most important ones are:
VAT . In the European Union , it is harmonized. Similar figures exist in other parts of the world. Some countries, however, have taxes that operate differently , in which, for example, companies do not deduct the amounts incurred .
Excise taxes . These taxes are levied only on certain types of goods. They are most commonly focused on hydrocarbons and other sources or forms of energy, alcoholic beverages, tobacco and certain means of transport.
Tariffs . There has been a global trend towards lowering tariffs for decades. However, in some cases they are still being paid.
Direct taxation
In general, you will pay the taxes in your country of residence that are levied on the income generated by your international sales or services. However, it is possible that in the destination country you will have to pay a tax similar to the income tax for non- Spanish residents. In any case, if there is one, you should check what is established in the agreement to avoid double taxation between both countries.
Payments
The lower the amount and the better known the buyer, the more the collection of the sale is usually similar to a transaction carried out within the country. In high-value transactions with non-regular customers, it is often useful to involve intermediaries in the payment. It is also common to establish conditions for making the payment and for the delivery of the goods and documents.
Carrying out physical operations
It must be clear whether certain transactions are carried out by the buyer, the seller or a third party and, in the latter case, how it is chosen. In addition, it must be considered who covers the costs of each transaction and who covers the risks. In this sense, the use of incoterms is common . Depending on which one is contracted, the conditions of operations will vary, such as:
