Spain is one of France's major trading partners, with €91.4 billion in goods exchanged in 2024. Many French businesses invoice Spanish customers regularly, but France has no separate invoicing rules for these transactions.

These rules can lead many businesses to make mistakes. Because traditional intracommunity transactions have no customs requirements or currency conversions, some French businesses apply a 20% value-added tax (VAT) to invoices for clients in both Spain and France. There are two risks to this. First, if French VAT is invoiced incorrectly, Spanish customers cannot deduct it and might refuse payment or request a corrected bill. Second, businesses that issue invoices without tax, or without the mandatory legal notice or VAT number, might have to pay a tax adjustment if they are audited. Therefore, understanding how to invoice clients in Spain helps sellers preserve relationships and avoid tax penalties.

In this article, we explain invoicing in Spain, the rules for French businesses, VAT options, mandatory information, and the importance of electronic invoices, reporting requirements, and invoicing by microenterprises.

Key takeaways

• French businesses can invoice Spanish customers without special authorisation or customs requirements, since Spain belongs to the European single market. Invoices remain subject to French law, regardless of where VAT is paid in the end.
  
• The tax treatment varies depending on the type of customer and transaction. Businesses receive invoices excluding tax and reverse the charge or are exempt. Private individuals receive invoices including French VAT for distance selling within the European Union in amounts up to €10,000, and Spanish VAT for amounts over that threshold.
  
• Spain has three different VAT rates: a normal rate of 21%, a reduced rate of 10%, and a super-reduced rate of 4%. Certain territories – such as the Canary Islands, Ceuta, and Melilla – have specific tax regimes with special rates.
  
• Invoices issued to Spanish customers must include all mandatory information required under French law. For business-to-business (B2B) transactions, this includes both parties' intracommunity VAT numbers and a notice justifying the lack of VAT (reverse charge, intracommunity exemption, or exemption regime).
  
• Such transactions also require declarations, such as the European Declaration of Services (DES) for services starting from the first invoice, the VAT summary (ERTVA) for deliveries of goods starting from the first euro, and the One Stop Shop (OSS) scheme for individuals above the €10,000 threshold. A new e-reporting requirement also applies as of September 2026.
  

Can French businesses invoice customers in Spain?

Yes, France-based businesses can invoice customers in Spain without prior authorisation or customs requirements. Because Spain is part of the European single market, French law governs the invoices. The key difference is how VAT is charged. It varies depending on whether the recipient is a business or an individual.

In traditional intracommunity transactions, French businesses do not need to establish a local branch, appoint a tax representative, or register for VAT in Spain to invoice Spanish customers. Invoices are sent from France with a French establishment directory identification system (SIRET) number using the business's normal invoicing software. They could be written in French, but bilingual French – Spanish documents are preferred. This typically helps speed processing by the recipient's accounts payable department.

Invoices have to comply with French regulations, including Article 289 of the General Tax Code (CGI) and Article L.441-9 of the Commercial Code. The billing rules that apply are those of the seller's country. The country where payment is due depends on the transaction type and the client.

For B2B services, taxes are paid in the customer's country, under Article 259-1 of the CGI. This means that if the customer is based in Spain, the charge is paid there. However, for sales to private individuals there, VAT is paid in France for distance selling in amounts under €10,000 within the EU. In both cases, these rules are independent of invoicing rules. Payment might be due there although the invoice remains subject to French law.

How to invoice customers in Spain

To invoice customers in Spain, French businesses typically issue invoices in euros and apply territoriality rules. Businesses with a valid Spanish VAT identification number (NIF-IVA) receive invoices excluding tax, with reverse charge or exemption wording. Individuals receive invoices with French or Spanish VAT, based on whether they meet the €10,000 threshold.

Here are three steps to determining how to invoice a client in Spain:

• Identify the customer: Is it a business subject to VAT or an end user?
  
• Determine the transaction type: Is it a delivery of goods or services? Deliveries of goods to Spain fall under the intracommunity deliveries regime, while services to businesses follow the customers' rules.
  
• Determine the volume of intracommunity sales: This step solely applies to sales of goods and digital services to individuals. It identifies when Spanish VAT applies.
  

Note: Three Spanish territories have special regimes. The Canary Islands belong to the EU's customs territory but are excluded from its VAT territory. Ceuta and Melilla are excluded from both. In all three cases, sales from France are not considered intracommunity deliveries, but exports. They require the notice "Exonération de TVA, article 262, I du CGI" ("Exempt from VAT, Article 262, Section I of the General Tax Code") and customs declarations. Upon arrival, the Canary Islands apply the Canary Islands General Indirect Tax (IGIC) at a normal rate of 7%. Ceuta and Melilla apply a Tax on Production, Services, and Imports (IPSI).

How to invoice Spanish businesses

France-based sellers issue invoices without tax. The client pays VAT on services in Spain, which they reverse-charge. Deliveries of goods are exempt from VAT in France. In both cases, invoices must list both parties' intracommunity VAT numbers and the appropriate legal notice.

Here's how to invoice businesses in Spain:

Verify the NIF-IVA in the VIES database before the first invoice

The NIF-IVA begins with ES, followed by nine characters. To verify its validity, French sellers can use the European Commission's VAT Information Exchange System (VIES) database. To appear in the system, Spanish clients must be included in the Register of Intracommunity Operators (ROI) maintained by the Agencia Tributaria (AEAT).

Invoice excluding tax

Under the territoriality principle, transactions are taxed in the customer's country, not the seller's. Customers reverse charge VAT in Spain on services (Customer Rule, Article 259-1 of the CGI). Deliveries of goods are exempt in France as intracommunity deliveries (Article 262 ter, Section I of the CGI). The recipient accounts for the charge there.

The exemption requires four cumulative conditions: a sale in exchange for consideration, an identified client in another member state subject to VAT, actual transport outside of France, and submission of an ERTVA.

Verify territoriality exceptions

Some services are exempt from the Customer Rule. They follow their own nexus rules instead. These cover building-related construction and services taxable where the building is located, and short-term rentals of modes of transport taxable at the place of rental. If the building or rental is located in Spain, the French business might need to pay Spanish VAT, which requires local registration.

How to invoice Spanish individuals

Invoices sent by French businesses to Spanish individuals must include all taxes. France's 20% VAT rate is typically charged on services. Remote sales of goods and digital services within the EU under €10,000 per year are subject to French VAT. Sales over that amount are subject to Spanish VAT.

Here's how to invoice individuals in Spain:

Apply French VAT to services

Article 259-2 of the CGI states that businesses based in France must pay VAT there on services rendered to customers not subject to VAT. For instance, a French consulting firm that renders services to a private client living in Seville would invoice French VAT of 20% – the same as for customers in France.

Verify the single threshold of €10,000

This threshold applies to the total remote sales of goods and digital services (including electronic, telecommunication, and broadcasting services) to individuals in the EU. It concerns businesses of any size based in a single member state and is calculated across the current and previous calendar year. Amounts below the threshold use the French rate. Amounts above it use the Spanish rate.

Use the OSS

Businesses can use the OSS scheme to declare and pay Spanish VAT from their business account at impots.gouv.fr. A single quarterly declaration covers all member states. The OSS centralises these payments to French authorities, who then forward payments to Spain.

The alternative – direct registration with the AEAT – is much more cumbersome. It requires a tax ID in Spain and periodic local declarations, such as Form 303. In addition, the process has to be repeated for each country where you make a sale.

Issue invoices when optional

When selling to individuals, billing documents are mandatory in certain cases. This includes intracommunity remote selling and at the customer's request. The best protection is to issue an invoice every time, in case of a dispute or audit – especially since the invoice information can be used directly for e-reporting.

Verify the invoicing and delivery addresses

For deliveries of goods, the VAT regime is determined by the actual place of delivery, not the invoicing address. For example, if the billing address is in Barcelona, but the delivery address is in Tenerife, the transaction is no longer an intracommunity delivery. It is considered an export. The French electronic invoicing reform is another reason to verify addresses. Under the reform, documents have to state the delivery address if it differs from the invoicing address.

What VAT rates apply in Spain?

Spain has three VAT rates: normal at 21%, reduced at 10%, and super-reduced at 4%. These rates are used for France-based sellers' transactions taxable there – primarily sales to Spanish individuals above the €10,000 threshold.

Let's take a closer look at Spain's three VAT rates:

• Normal (21%): This rate covers the vast majority of goods and services, from consulting to computer hardware to apparel.
  
• Reduced (10%): The reduced rate applies to restaurants, passenger transport, certain processed foods, deliveries of new housing, and some residential improvements.
  
• Super-reduced (4%): This rate is reserved for staples – primarily bread, milk, eggs, fresh fruit and vegetables, print books, newspapers, and medicine for human use.
  

What information is required on French invoices sent to Spain?

Invoices sent to Spain must include all mandatory information required by French law, plus two additional elements. For B2B clients, the documents have to contain the intracommunity VAT numbers of both the buyer and seller, along with a precisely worded legal notice justifying the lack of VAT.

Here is the information required on invoices sent to Spain:

Full identity of both parties

Sellers have to provide their company name, legal form, registered address, and SIRET number. Invoices to Spanish business customers must include the customer's company name, invoicing address, and NIF-IVA. For private clients, the recipient's name and address are sufficient.

Both parties' intracommunity VAT numbers

The presence of both VAT numbers is the element most often audited in intracommunity transactions. The customer's number is required for VAT exemption, because it allows French and Spanish authorities to cross-check the transaction in the VIES database.

Invoice number and dates

Invoices must be numbered in continuous chronological order. If the delivery or service is provided on a day other than the date of issue, that date also has to appear on the invoice.

Itemisation of transactions

Invoices must include a clear, precise description of each good or service, the quantity, unit price excluding tax, any discounts or reductions, and the total excluding tax.

Legal notice justifying lack of VAT

The legal notice varies by transaction. Invoices for B2B services have to contain the phrase "Autoliquidation, articles 44 et 196 de la directive 2006/112/CE" ("Reverse charge, Articles 44 and 196 of Directive 2006/112/EC"). Otherwise, Spanish customers cannot justify a reverse charge with the AEAT. Invoices for deliveries of goods must include the phrase "Exonération de TVA, article 262 ter, I du CGI et article 138 de la directive 2006/112/CE" ("Exempt from VAT, Article 262 ter, Section I of the General Tax Code and Article 138 of Directive 2006/112/EC").

Invoices from VAT-exempt businesses to individuals must include the phrase "TVA non applicable, article 293 B du CGI" ("VAT not applicable, Article 293 B of the General Tax Code"). You can use this phrasing at least until 31 December 2027, when the recodified Code of Taxes on Goods and Services (CIBS) takes effect.

Payment terms

Invoices have to state the due date, late penalty rate, and €40 collection fee. Unless the contract provides otherwise, French law sets the payment terms at 30 days from delivery of the goods or services. The parties can agree to a longer payment term, capped at 60 days from the invoice issuance date or, with express agreement, at 45 days end of month.

Spain's rules are similar. The default is 30 days, but the parties can agree to up to 60 days.

Glossary for Spanish invoices

Although French businesses are not required to issue invoices in Spanish, a Spanish or bilingual version can help speed processing by the recipient's accounts payable department. Precise vocabulary is important. A poorly translated tax notice might confuse the recipient and delay payment.

Here are some useful terms for writing and reviewing invoices in Spanish:

Do electronic invoicing rules apply to French businesses invoicing in Spain?

No, French businesses selling to Spanish customers are not required to issue structured electronic invoices. Spanish regulations – including VERI*FACTU and B2B electronic invoicing rules under the Create and Grow Law – apply exclusively to businesses based in Spain. This also covers subsidiaries of foreign groups.

The regulations do not apply to French businesses without an established local branch. The French reform categorises invoices to other countries as e-reporting, not mandatory B2B electronic invoices. In practice, a growing number of clients in Spain expect structured invoices whose data can be ported directly to their accounting software (e.g., Universal Business Language [UBL] or Factur-X formats).

What declarations are required when invoicing in Spain?

Declarations vary by transaction type. Services rendered to Spanish businesses require a DES from the first invoice. Deliveries of goods require an ERTVA from the first euro. Businesses selected by customs must also complete the monthly intra-EU trade in goods (EMEBI) survey and comply with the new e-reporting requirement.

Here is a closer look at each mandatory declaration:

DES

This declaration covers any service rendered to a client subject to VAT based in another member state, if VAT is reverse charged. Submit the DES online through the customs portal by the 10th business day of the month after the invoice is issued. There is no minimum threshold. Filing begins with the first invoice.

ERTVA

ERTVA applies to intracommunity deliveries of goods exempt from VAT under Article 262 ter, Section I of the CGI. It also extends to inventory transfers to warehouses in Spain. ERTVA is submitted monthly via the DEBWEB2 customs portal and is a condition for VAT exemptions.

Failure to submit the ERTVA is punishable by a fine of €750, or €1,500 if submitted more than 30 days after receiving a warning notice. In addition to fines, omitting a delivery can jeopardise an exemption during an audit.

Monthly EMEBI survey

EMEBI is limited to enterprises selected by customs via an official letter at the end of the previous year. Missing or incorrect declarations are punishable by a fine of €75 to €150, or more for repeat violations.

VAT declaration: CA3 and CA12 forms

Businesses that owe VAT must submit either a CA3 or CA12 VAT declaration form, depending on the regime. The form has to report transactions in Spain, including those that generate no tax. Report intracommunity deliveries and services not taxable in France on the designated lines. This allows authorities to match the declaration to the corresponding ERTVA (for goods) or DES (for services).

OSS declaration

Each quarter, businesses must declare sales made to individuals in the EU over €10,000 per year via the One Stop Shop. French authorities forward the Spanish VAT collected to Spain.

E-reporting of international transactions

The new e-reporting obligation calls for sellers to send tax authorities data for certain transactions that fall outside of the mandatory electronic invoicing rules. These include international transactions. The requirement starts with large companies beginning 1 September 2026. On 1 September 2027, it will extend to small and medium-sized enterprises (SMEs), very small enterprises (TPEs), and microenterprises, regardless of VAT regime, including VAT-exempt enterprises.

Microenterprises and VAT exemptions

Microenterprises exempt from VAT can invoice Spanish customers, but the exemption is subordinate to territoriality rules. When billing Spanish businesses, microenterprises must obtain the recipient's intracommunity VAT number, issue invoices excluding tax, add the reverse charge wording, and file a DES. However, they continue to enjoy VAT exemption on French transactions.

Note: Services rendered to Spanish businesses subject to VAT are not considered located in France, as defined by Article 259-1 of the CGI. They fall outside French VAT, regardless of the seller's regime. As a result, transactions not located in France are not exempt from VAT. The notice mentioned in Article 293 B of the CGI is not appropriate. Instead, the invoice has to contain the phrase "Autoliquidation" (reverse charge).

Also, unlike Germany and other European markets, Spain has no VAT exemption regime. Beginning 1 January 2025, Directive 2020/285 allows small enterprises to use another member state's VAT exemption under certain circumstances. This mechanism is moot in Spain because no underlying national VAT exemption rule exists. Consequently, for sales to Spanish individuals in amounts over €10,000, Spanish VAT applies from the first euro. No local VAT exemption is available.

How Stripe Invoicing can help

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Learn more about how Stripe can simplify your accounts receivable process or get started today.

FAQs about invoicing in Spain by French businesses