Common Tax Errors for Freelancers and SMEs in Spain: Avoid Them!

As a freelancer or SME in Spain, tax management can be a labyrinth. Regulations change, deadlines are tight, and a small slip can lead to significant penalties. With the current reference date of July 2026, and looking ahead to a 2027 full of novelties, staying up-to-date is crucial. Below, we break down the most frequent tax errors so you can avoid them.

1. Incorrect or Insufficient Deductions

One of the most widespread errors is the inadequate management of deductible expenses. Many sole traders don't deduct everything they could due to lack of knowledge, or worse, deduct expenses that do not meet the requirements for exclusive allocation to their economic activity. Remember: for an expense to be deductible for IRPF (income tax) or VAT, it must be directly related to your activity, justified with an invoice, and properly recorded in your accounts. This includes everything from utility bills and office rent to per diems and mileage, provided their professional link is justified.

2. Errors in VAT Management

Value Added Tax (VAT) is another common source of errors. Mistakes in applying the correct tax rate, in the settlement of intra-community operations, or in managing the pro-rata (for activities with both exempt and non-exempt VAT) can lead to adjustments and surcharges. It is vital to periodically review the tax bases and the VAT charged and supported, as well as to strictly comply with quarterly and annual deadlines.

3. Lack of Knowledge of Withholding Obligations

Many freelancers, especially those who collaborate with other professionals or rent premises, are unaware of their obligations as IRPF (income tax) withholdings agents. Failing to apply the corresponding withholding on professional service invoices or rents, or not declaring and paying it to the Tax Agency (AEAT), is a serious infraction with its corresponding penalties.

4. Non-Compliance with Deadlines and Formal Obligations

The AEAT is inflexible with deadlines. Filing declarations late (VAT, IRPF, Intrastat, etc.) incurs surcharges and fines. Furthermore, not maintaining adequate accounting, not issuing invoices correctly numbered and with all mandatory tax data, or not retaining documentation for the legally established period, are formal failures that can lead to serious problems in the event of an inspection.

5. New E-invoicing and VeriFactu: The Big Challenge of 2027

The most significant change on the horizon is the mandatory nature of electronic invoicing and the VeriFactu system (Law 18/2022, known as 'Ley Crea y Crece'). From January 1, 2027, it will be mandatory for all companies, and from July 1, 2027, this obligation will extend to all freelancers and micro-enterprises.

This system aims to combat tax fraud and ensure the traceability of operations. It involves using AEAT-certified invoicing software that generates verifiable invoices and automatically sends them (or via intermediary platforms) to the Tax Agency. Failing to adapt in time can lead to serious problems, including significant VeriFactu fines. It is essential to understand when VeriFactu is mandatory for your business and prepare in advance.

Conclusion

Avoiding these tax errors will not only save you money in penalties but also give you peace of mind and security in your activity. Staying informed and having the right tools is essential. At Fakturia.es, we understand your needs and offer intuitive invoicing software adapted to the Anti-Fraud Law and the future VeriFactu system, so you can focus on what truly matters: growing your business.