IVA-exempt services in Spain explained
Not every invoice in Spain charges IVA. Some services may be exempt, and understanding the difference matters — both for your invoices and for what you tell your gestor.
What IVA exemption means
IVA exemption means that a specific type of transaction does not have IVA added. The invoice shows 0% IVA on that service. This is different from charging 0% IVA on an export — the reason for the zero rate matters legally.
Exempt does not mean free from rules
If your services are exempt from IVA, you still need to issue proper invoices. The exemption simply means you do not collect IVA from clients and cannot reclaim IVA on related expenses. Your gestor should explain the implications for your quarterly IVA position.
Common areas where IVA exemption may apply
- Certain educational services and teaching activities
- Some medical and healthcare services
- Insurance and certain financial services
- Some cultural and social services
- Property rental for residential use
This list is not exhaustive and the specific conditions matter. Do not assume your services are exempt without checking.
Why you should not guess
Charging the wrong IVA rate — whether too high or too low — creates problems. If you charge IVA when you are exempt, your client may have issues reclaiming it. If you do not charge IVA when you should, you may owe the amount to AEAT regardless of whether you collected it.
What to ask your gestor
Ask your gestor: "Do my specific services qualify for any IVA exemption?" Give them a clear description of exactly what you do and who your clients are. The answer depends on the details.
How BillBee handles IVA settings
BillBee lets you set your default IVA rate and override it per invoice line. If your gestor has confirmed an exemption applies, you can set the appropriate rate and add a note explaining the exemption.