Providing services to clients across other European Union member states is common for Spain-based freelancers, consultants, and SMEs. However, VAT rules vary significantly depending on whether you invoice business clients (B2B) through the reverse charge mechanism or provide electronic services to private individuals (B2C) registered under the One Stop Shop (OSS).
Professional B2B Services: Place of Supply and Reverse Charge
When your EU client is a business or sole trader with a valid VAT-ID verified in the VIES database, the general place-of-supply rule applies (Article 69 of the Spanish VAT Act and EU Directive 2006/112/EC): the service is taxed at destination.
* Invoicing without Spanish VAT: Issue the invoice without VAT, adding the compulsory legal notice: «Reverse charge mechanism applies – exempt under territoriality rules (Art. 196 Council Directive 2006/112/EC)».
* Reporting requirements: Both provider and customer must be enrolled in the VIES registry (ROI). The turnover must be reported in Form 303 and Form 349 (recapitulative statement).
Digital B2C Services and the One Stop Shop (OSS)
If you sell electronically supplied services (SaaS, automated online courses, digital downloads, software hosting) directly to final consumers across the EU:
1. The €10,000 threshold: If your total annual cross-border B2C digital sales and distance goods sales remain below €10,000, you can apply Spanish VAT (21 %) via standard tax returns.
2. The Union OSS Scheme: Once you exceed €10,000, you must charge the specific VAT rate of your client's member state. Instead of registering for VAT in every EU country, you submit a quarterly declaration and payment to the Spanish tax agency (AEAT) using Form 369.
Complying with Spain's VeriFactu Timeline
Spain's electronic invoicing framework sets firm deadlines: VeriFactu will become legally mandatory on January 1, 2027, for corporate entities and on July 1, 2027, for freelancers and micro-enterprises. Check our timeline breakdown on when VeriFactu is mandatory.
Every invoice, including reverse-charge EU transactions and OSS sales, must generate encrypted, chained audit records with verification QR codes. Businesses building automated billing workflows rely on an API VeriFactu or a specialized pasarela VeriFactu para software. Similarly, teams can carry out an integración ERP VeriFactu or seamlessly migrate operations to importar Factusol a VeriFactu, importar Sage 50, importar Holded, or importar Excel a VeriFactu.
For more compliance insights, explore our VeriFactu guide for freelancers.
With Fakturia.es, managing cross-border invoicing is seamless and fully compliant with Spain's Anti-Fraud legislation and VeriFactu standards.