Knowing how to invoice services abroad is key for freelancers and companies working with international clients. In 2025, with new fiscal rules and advancements in electronic invoicing, it’s important to have a clear understanding of the process, obligations, and real-world examples to operate with complete security.
1. What Does Invoicing Services Abroad Involve?
It depends on the type of client and their location:
- Clients within the European Union: If the counterparty is a company or freelancer with an intra-community VAT number (NIF-IVA), the invoice is issued without VAT by applying the reverse charge mechanism. You must include the phrase “Operación exenta de IVA” (VAT-exempt operation) on the invoice and declare the operation in models(https://entretramites.com/fiscal-tributario/como-presentar-modelo-303-iva-autoliquidacion)(https://entretramites.com/fiscal-tributario/modelo-390), and(https://entretramites.com/fiscal-tributario/como-presentar-modelo-349-operaciones-intracomunitarios) (the latter for intra-community operations). You can find more information on how to carry out operations with other businesses within the EU.
- Clients outside the EU: Whether they are companies or individuals, neither VAT nor IRPF (Personal Income Tax) retention is applied. You declare the invoices without VAT in your models 303 and 390.
2. What Taxes Are Involved When Invoicing Services Abroad?
- VAT:
- In the EU, the reverse charge mechanism is applied, and VAT is not charged to the client.
- Outside the EU, VAT does not apply.
- IRPF: No retentions are made on invoices to foreign clients, whether intra-community or not.
- Mandatory Fiscal Models:
- Model 349: Intra-community operations.
- Models 303 and 390: Quarterly declaration and annual summary of VAT.
3. Steps to Correctly Invoice Services Abroad
- Registration in the ROI (Register of Intra-community Operators): To invoice companies/freelancers in the EU, register using model 036, ticking box 582, and obtain your NIF-IVA. You can get more information on how to carry out operations with other businesses within the EU: ROI, VIES, NIF-IVA, and NVAT.
- Issue the Appropriate Invoice:
- Include complete fiscal data.
- For intra-community clients: Specify VAT exemption and NIF-IVA.
- For third countries: Invoice without VAT or retentions.
- Declare Operations in the corresponding models according to the type of client.
4. Examples
- Case 1 (EU): Marta, a freelancer, provides SEO services to a French company with a NIF-IVA. She issues an invoice for €5,000 without VAT, applies the reverse charge mechanism, and reports it in Model 349.
- Case 2 (Non-EU): Luis develops an app for a Canadian firm. He invoices €8,000 without VAT or retention. He declares it in models 303 and 390.
5. Adapting to Electronic Invoicing in 2025
- The VERIFACTU system is underway, available since April 23, 2025, on the AEAT (Spanish Tax Agency) Electronic Headquarters. It allows for sending verifiable and accessible invoices with a QR code.
- In 2026, it will be mandatory for companies; in July 2026, it will apply to freelancers and SMEs with revenues below 6 million euros.
- Royal Decree 254/2025 (modifying RD 1007/2023) is introduced to regulate the Invoice Information Systems (SIF) and traceability.
Frequently Asked Questions
Is it mandatory to register in the ROI to invoice abroad?
Only if you invoice companies or freelancers with a VAT number from the EU. It is not necessary with non-EU clients or individuals.
Is it necessary to apply IRPF retention when invoicing abroad?
No. Retention does not apply to invoices for foreign clients (EU or non-EU) according to current regulations.
Must I include these invoices in my VAT models?
Yes. Declare them in Model 303 (quarterly), Model 390 (annual), and, for the EU, in Model 349.
Invoicing services abroad requires understanding the fiscal differences between clients in the EU and third countries, complying with formal registrations like the ROI if applicable, and adapting to the imminent obligation of electronic invoicing. Ensuring you issue the invoice correctly and submit the required models is fundamental to operating safely, avoiding penalties, and optimizing your international fiscal management. Preparation for new systems like VERIFACTU will be key for efficiency in the coming years.
If you need personalized assistance, at Entre Trámites we offer management and fiscal advisory services for freelancers and SMEs. We are here to facilitate the process and ensure your international activity complies with all regulations.
You can also contact us directly through this contact Form for us to call you, or if you prefer, you can schedule a free consultation or write to us on WhatsApp. We’re here to make the process easier for you!.
