The Spanish Tax Agency (AEAT) only lets you deduct the VAT on an expense when three conditions are met at the same time: a full invoice in your name, showing your NIF (tax ID) and the VAT amount broken down; an expense linked to your business activity; and the invoice being recorded in the register of invoices received and in modelo 303, the quarterly VAT return.
5 Tax Agency requirements for claiming back VAT on an expense
A full invoice is the basic proof, but on its own it is not enough. Check these five points before recording any input VAT:
- Invoice in your name. It must identify the recipient by name or company name, NIF and address. A generic receipt without your details gives you no right to deduct.
2. Expense linked to the business. The goods or service must be related to what you invoice. Personal or family purchases are excluded even if the invoice is in your name.
3. Activity with a right to deduct. If your sales or services are VAT-exempt, or you are taxed under a special scheme that does not allow deductions, such as the equivalence surcharge (recargo de equivalencia) for retailers, the input VAT simply becomes one more cost.
4. Entry in the register. The invoice must appear in the register of invoices received, with the taxable base, the rate and the VAT amount, and be carried over to that quarter's return.
5. Claimed within the deadline. The right to deduct is not indefinite: it expires if it is not exercised within the period set by the VAT law. Don't stockpile forgotten invoices from old quarters.
Expense invoice details the AEAT checks before accepting the deduction
During a tax inspection, the AEAT first checks whether the invoice contains all the mandatory details. If any is missing, it can refuse the deduction even when the expense is genuine.
| Invoice detail | What it must show | Common mistake |
|---|---|---|
| Number and series | Supplier's sequential numbering | Invoices with no number or a duplicated number |
| Issue date | Day the invoice is issued | Date different from the transaction without saying so |
| Issuer details | Name or company name, NIF and address | Trading name without NIF |
| Recipient details | Your name, your NIF and your address | Invoice in a relative's name |
| Description | Specific goods or service supplied | “Various” or “services” with no detail |
| Taxable base and VAT rate | Taxable base and rate applied: 21 %, 10 % or 4 % | Wrong rate applied |
| VAT amount | Tax amount shown separately from the base | “VAT included” price with no breakdown |
Once your supplier uses a VeriFactu system, its invoices will carry a QR code you can use to check that the record has been sent to the AEAT. The obligation applies from 1 January 2027 for corporate income tax (Impuesto sobre Sociedades) payers and from 1 July 2027 for everyone else. The QR code does not replace any of the details in the table: an invoice with a QR code but without your NIF still cannot be used for the deduction.
If you also issue invoices and want to review yours field by field, you can use the VeriFactu invoice requirements checker.
Simplified invoice or till receipt: when you can recover input VAT
A simplified invoice is allowed up to 400 € VAT included, and up to 3.000 € in certain retail sectors, under article 4 of Real Decreto 1619/2012. An ordinary till receipt does not identify the buyer, so in principle it does not let you recover the VAT.
The solution is to ask the supplier to add your NIF, your address and the VAT amount broken down to the simplified invoice, or to issue you a full invoice. Do it when you pay at petrol stations, restaurants, hardware shops or office supply stores, because afterwards some businesses are more reluctant.
Keep proof of payment together with the invoice: it is not a formal requirement for the deduction, but it helps show that the expense is genuine and relates to your business.
Real example: deductible VAT on a professional's invoice to a company
A company hires a professional for 1.000 € in fees. This is the invoice it receives:
| Invoice item | Calculation | Amount |
|---|---|---|
| Taxable base | service fees | 1.000,00 € |
| VAT (21 %) | 1.000,00 € × 21 % | 210,00 € |
| IRPF withholding (15 %) | 1.000,00 € × 15 % | −150,00 € |
| Invoice total (base + VAT) | 1.000,00 € + 210,00 € | 1.210,00 € |
| Amount to be paid | total − withholding | 1.060,00 € |
The company can deduct the 210,00 € of VAT in its modelo 303, because the invoice contains the mandatory details and the service is linked to its business. The 150,00 € withholding does not affect VAT: the company pays it to the Tax Agency with modelo 111 and summarises it in modelo 190 under key G01. The 1.000,00 € base is the expense that counts towards its direct tax.
Modelo 303 is filed from 1 to 20 April, July and October, and from 1 to 30 January for the fourth quarter. To check amounts before booking them, use the freelance invoice calculator with VAT.
4 mistakes that cost you the VAT on an expense invoice
- Accepting invoices without your NIF. This is the most common slip with small suppliers and quick purchases.
2. Deducting VAT on a personal expense. A family meal or everyday clothing does not become a business expense just because it carries your details.
3. Not correcting a wrong VAT rate. If the supplier charges 21 % where 10 % applies, ask for a corrective invoice instead of deducting the wrong amount.
4. Forgetting to record the invoice in its quarter. An invoice that is neither in the register nor in the 303 is hard to defend during an inspection.
Frequently asked questions
Can a till receipt be used to deduct VAT?
A normal till receipt cannot be used to deduct VAT, because it does not identify the buyer. To claim the VAT, the simplified invoice must include your NIF, your address and the VAT broken down, or the supplier must issue you a full invoice in your name.
What happens if an expense invoice shows the wrong NIF?
An expense invoice showing the wrong recipient NIF does not prove that the expense is yours, and the Tax Agency may reject the deduction. The right step is to ask the supplier for a corrective invoice with the correct details and record that corrective invoice in the register of invoices received.
Can a freelancer deduct VAT on an invoice not yet paid?
A freelancer under the general VAT scheme can deduct the VAT on an invoice received even before paying it, as long as the formal requirements are met. Anyone under the special cash accounting scheme (criterio de caja), however, must wait until payment to deduct it.
Where is VAT on expense invoices declared?
VAT on expense invoices is declared in modelo 303, filed from 1 to 20 April, July and October, and from 1 to 30 January. The year's input VAT is then summarised in modelo 390, except for those who keep their registers through the SII.
If you want to know whether the way you invoice is already ready for what the Tax Agency will require in 2027, take Fakturia's free VeriFactu risk diagnosis: in 2 minutes you will know your obligation date and what you still need to adjust.