Invoicing foreign clients: VAT, the ROI register and reverse charge
If your client is in another EU country or outside the EU, the VAT on your invoice changes completely. The three scenarios, the ROI registration and form 349.
Three scenarios, three different invoices
1. Business client in the EU (B2B)
The general rule for B2B services is taxation at destination: your invoice carries no Spanish VAT, and the client self-assesses it in their own country (reverse charge). To do this you need to:
Be registered in the ROI (Register of Intra-Community Operators) with your VAT number.
Verify the client's VAT number in the VIES system.
Mark the invoice as not subject to VAT under the reverse charge, citing the relevant rule.
Report these transactions on form 349 (recapitulative statement).
2. Private individual in the EU (B2C)
For services, the general rule taxes where the supplier is based: you invoice with Spanish VAT. There are important exceptions (electronic services, telecommunications, broadcasting) that are taxed at destination and may require the One Stop Shop (OSS).
3. Client outside the EU
Business client (B2B): the general rule places the service in the client’s country, so the invoice is issued without Spanish VAT, with the corresponding legal note.
Private individual (B2C): this is not automatic. The general rule places the service where you are established, which means Spanish VAT at 21%. Only the services listed in article 69.Dos of the Spanish VAT Act (consultancy, advisory, advertising, legal services, data processing, transfer of rights and similar) are outside Spanish VAT when supplied to individuals established outside the EU. Digital services to individuals are taxed in the client’s country and may require registration there or the One Stop Shop.
None of these transactions go on form 349 (that is EU-only), but they must appear in your accounting records and on form 303.
Withholding tax when collecting from abroad
Some countries apply withholding tax at source on payments to you. That withholding is not lost: it can be deducted in your personal or corporate income tax as foreign tax paid, within the limits of the double taxation treaty. Always keep the client's withholding certificate.
Prerequisite
Registration in the ROI is requested using form 036, in the corresponding box, before your first transaction. The tax authority processes it and you receive an active VAT number listed in VIES.
Official sources
Frequently asked questions
Do I charge VAT to a client in another EU country?
If the client is a business or professional with a valid VAT number, the invoice is issued without VAT under the reverse charge. If it is a private individual, VAT is generally charged.
What is the ROI and when do I need to register?
It is the Register of Intra-Community Operators. You must be registered, using form 036, before issuing or receiving intra-EU invoices without VAT.
What if the client is outside the European Union?
Exports of goods and most services to businesses in third countries fall outside Spanish VAT, stating the reason on the invoice.
What is form 349?
The informative return for intra-Community transactions. It is filed monthly or quarterly depending on the volume of transactions.
Do I need to withhold personal income tax when invoicing abroad?
Invoices to clients not established in Spain do not carry a personal income tax withholding, although the income is still taxable in your own return.