Starting a professional activity as a freelancer or SME is a process that involves a series of initial investments: buying a computer, renting an office, hiring services, or acquiring stock. A very common question at this stage is: can I deduct the VAT from these invoices received before my official registration with the Tax Agency?
The short answer is yes, it is possible, but the Spanish Tax Agency (AEAT) establishes a series of very strict conditions that you must meet to do so correctly.
The Key: Notifying Your Intention to Start an Activity
The fundamental requirement to be able to deduct VAT from prior expenses is to have notified the Tax Agency of your intention to start a business or professional activity *before* making these purchases.
This is done by submitting a census declaration (Form 036 or 037), checking the box for "pre-registration before the start of the activity." By doing this, you are not definitively starting your activity, but rather informing the AEAT that you will begin to incur expenses and make investments for your future business.
Requirements to Deduct Input VAT Before Registration
Once you have communicated your intention, you must ensure you meet the following points for the deduction to be valid:
* Direct link to the activity: The goods and services acquired must be directly and exclusively related to your future economic activity. For example, the computer for a graphic designer, the tools for a plumber, or the furniture for a consultancy.
* Full invoices in your name: Tickets or simplified invoices are not valid. You need full invoices that include all your tax details (name, NIF/tax ID, and address), those of the supplier, and the VAT breakdown.
* No more than four years have passed: The right to deduct these VAT amounts expires four years from the invoice date.
* Complete final registration: You must complete your final registration in the Census of Entrepreneurs, Professionals, and Payers within one year of submitting the prior notification.
How and When is This VAT Deducted?
These input VAT amounts are not deducted immediately. You will have to wait to file your first VAT self-assessment (Form 303) after having formalized the start of your activity. In that first return, you can include all the VAT amounts from the invoices for prior expenses that meet the requirements.
Planning and the Future: The VeriFactu Era
Keeping an impeccable record of these initial invoices is crucial. With the imminent arrival of electronic invoicing and VeriFactu systems, digital and orderly management from day one is more important than ever. Remember that the deadline for companies to adapt is January 1, 2027, and for freelancers, it is July 1, 2027.
Starting off on the right foot involves not only complying with the paperwork but also choosing the right tools. If you have questions about the registration process, you can consult our guide on how to register as a freelancer step by step. Furthermore, to be prepared for the new obligations, it is essential to understand the changes introduced by VeriFactu 2027: Deadlines for Freelancers in Spain.