INVOICING CORRECTLY LOCALLY, NATIONALLY AND INTERNATIONALLY
In order to gain a better understanding of how to invoice a client no matter where he is, let’s do it with an example:
A company located in Gran Canaria offers an accounting program allowing users to download it by paying in advance.
The program is downloaded by: A company based in Canary Islands: The company will pay IGIC as a “business to business” operation.
A private individual in Canary Islands: He or she will pay IGIC as a “business to consumer” operation.
A company based in the Spanish mainland: The company will pay IVA as a “business to business” operation.
A private individual in the Spanish mainland: He or she will pay IVA.
A private individual in the UE: He or she will pay the IVA of the country where he or she lives.
A company or a private individual outsite the UE: Tax free.
SOCIAL SECURITY, IRPF, IRNR, AND OTHER TAX
When an entrepreneur sets up a company or startup in Gran Canaria, the taxes will be paid when the first sale is carried out. At this very moment the entrepreneur is required to register with the Spanish and Canaries Tax Authorities and Social Security as a freelance.
In Gran Canaria the freelances, according to the local government laws, have the following benefits:
When the freelance is registered with Social Security, the taxes shall be calculated in proportion to the number of days worked and not for the whole month.
The freelance fee is 50 euros for the first year.
For working lunches, the freelance gets a daily discount up to 26 euros.
If the freelance works from home, the energy and water consumption and telephone charges are 30% deductible.
