Requesting an upfront deposit before starting work is a smart way for freelancers and SMEs in Spain to secure cash flow. However, confusing quotes, proforma invoices, and advance payment invoices is a frequent pitfall that can lead to tax penalties from the AEAT.
Here is how to properly document upfront payments and stay compliant with current invoicing laws.
Quotes and proforma invoices: strictly commercial proposals
Neither a price quote (presupuesto) nor a proforma invoice (factura proforma) holds any tax or accounting validity in Spain:
* Quote: details the agreed scope of work, timeline, and pricing.
* Proforma invoice: looks identical to a formal invoice, but it must clearly bear the title «Proforma» and use a separate numbering system outside your official invoice series.
A widespread mistake among expats and freelancers is treating the proforma as proof of transaction once the client pays. In the eyes of the Spanish tax agency, this does not fulfill legal requirements.
Immediate VAT accrual: the mandatory advance invoice
Under Article 75.Dos of the Spanish VAT Law (Ley del IVA), when you collect a deposit or advance payment before delivering the goods or services, VAT accrues immediately at that exact moment.
Once the client wires the deposit based on your proforma, you must issue an advance invoice (factura de anticipo) detailing the taxable base and VAT (typically 21%). This invoice must be declared in that quarter's tax filing (Form 303).
When the project is delivered, you issue the final invoice. Here, you list the total project amount, subtract the net base already billed in the advance, and charge VAT only on the remaining balance.
Preparing for VeriFactu compliance
Under upcoming anti-fraud regulations and mandatory electronic invoicing for freelancers in Spain, advance invoices will generate encrypted audit trails with QR codes. Official deadlines are firmly set: January 1, 2027 for incorporated companies, and July 1, 2027 for sole traders and micro-enterprises.
Managing advances in spreadsheets will no longer be legal. Businesses must transition using options such as importar Excel a VeriFactu, migrating systems via importar Factusol a VeriFactu, or executing migrations like importar Sage 50 and importar Holded to remain fully compliant.
For businesses with custom platforms, connecting an API VeriFactu or completing an integración ERP VeriFactu ensures that converting an accepted quote into a validated advance invoice happens seamlessly.
For a full breakdown of requirements, check our VeriFactu guide for freelancers. To send professional quotes and convert them into compliant advance invoices with ease, discover Fakturia.es, fully certified under Spain's Anti-Fraud laws.