In Contaldia, the first specialized consulting firm in Odoo in Spain, one of the most recurring questions we receive is always the same:
“I have an invoice from outside Spain… Does it include VAT?, Can I deduct it?, Is it exempt or not subject?”
The reality is that not all foreign invoices are treated the same, and a mistake in classification can cause problems in model 303, in the SII or in an inspection.
Next, we explain to you the most common cases, with tax criteria and a practical approach in Odoo to learn how to correctly account for international purchases.
Import invoices
Due to the fact that there are several steps and documents such as the DUA or CAU, supplier purchase invoice, and freight forwarder invoice, it is better Check the full news with video tutorials here
Invoices with VAT that I decide not to deduct voluntarily
Description
It may happen that, due to the internal criteria of the company, it is decided not to deduct VAT even though it would be deductible.
Tax
21% ND
21% non-deductible VAT
or according to product the rate 10%, 4%
Tax Position
Indifferent
Invoices with VAT from another country or IGIC (travel, hotels, meals…)
Description
Typical example:
- Hotel in Italy
- Restaurant in Norway
- Accommodation in Canary Islands(IGIC)
VAT from another country is not deductible in Spain's VAT model 303. Remember that you can request a refund of the VAT from that country.
Tax
Exempt DUA (tax we use because it is not linked to any official AEAT tax)
Another option is to create a new VAT tax without the right to deduction
Tax Position
Indifferent
Supplier Without VAT from outside the EU (USA, UK, China…)
Description
Non-EU company that issues us an invoice for goods or services without VAT, because it sends it to Spain.
Tax
21% EX S - VAT 21% Acquisition of goods or services from outside the EU
Tax Position
Non-EU
Supplier from the Canary Islands, Ceuta, or Melilla
Description
Company from the Canary Islands, Ceuta, or Melilla invoices us without VAT to our company in Spain
Tax
0% G EXEMPT NS (Purchases) - VAT Not Subject to Goods or Services
Tax Position
Regime not subject to location rules
EU supplier (Italy, Germany, France…)
Description
A European company listed in the VIES census issued an invoice without VAT to our Spanish company.
More information about the VIES census here
Tax
21% EU G -
VAT 21% Intra-Community Acquisition of goods or services
or depending on the product, the rate is 10%, 4%
Tax Position
Intra-community
“Foreign” suppliers with CIF ESN or NXXX
Description
This happens a lot with Amazon, large platforms, or multinationals.
If the CIF starts with:
- ESN
- N…
The supplier has a permanent establishment in Spain, therefore, it is like a Spanish company
Tax
21% G INC - 21% VAT (current goods)
Or 21% RC - VAT 21% Purchase with National Reverse Charge Mechanism (very common on Amazon)
Tax Position
National
Investment of the National Taxpayer
Routine operations NOT SUBJECT to VAT
Description
These operations are outside of VAT:
- Freight and transport to/from outside Spain
- Compensations
- Certain services located outside due to location rules
Do not carry VAT anddo not affect the prorate.
Tax
0% G NS - Not subject goods or services
Tax Position
Indifferent
Regular operations EXEMPT from VAT
Description
- Bank commissions, PayPal, and financial services
- Formal education and training
- Medical, health, and similar services
- Housing rentals
- Services of non-business associations
Here we are indeed within VAT, butwithout repercussion
Important: the exempt ones do affect the prorate.
Tax
0% EXEMPT Others, Art 22, 23, or 24. It is exempt according to the type of exemption
Tax Position
Indifferent
🚀 Conclusion Contaldia
The biggest mistake in international VATis not where the supplier is, but:
- the tax position
- the tax to select
In Contaldia we not only handle accounting,we design the correct tax logic in Odoo, so that each invoice is recorded correctlyfrom the first click.
If you have questions about international invoices, DUA, SII, or tax positions in Odoo,talk to us before the tax office does 😉
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