From an accounting point of view, there are two types of international invoices.
Invoices for Services or Products coming from outside of the VAT-zone.
To account for this type of invoice you should indicate IVA rate at 0%.
Additionally we should indicate that it is a international invoice using the Tags input form.
This will allow us to locate it and report it using the designated official document.
If the invoice is in another currency read Invoice received in another currency.
If there is a physical item entering the EU border, along with the invoice at zero VAT rate, you will need to account for customs documents.
These may be:
- IVA payment document. You will need to pay the IVA at the customs to receive the document. This VAT is deductible.
- Invoice for any Transport or Storing service.
- Importation fees and taxes.
Invoices for services or Products coming from another country within the VAT zone.
With ROI registration.
As explained in our article European VAT number and Intra-Community Invoice you need to be registered as a European Trader ( ROI ) in order to be able to request an invoice with zero VAT rate.
In such cases, you would have to account for the invoice with 0% IVA, as shown above in the case of an international invoice, and include the Tag “ Intra-community invoice”.
Once again this will allow us to spot it and include it in the appropriate forms.
Without ROI registration
In this case, you will input the invoice normally with the VAT rate of the country of origin. This VAT is not claimable in Spain.
However the total of the invoice, base plus foreign VAT, can be offset for income tax purposes.
We explain important information that you need to know and how to account for the invoice in this case here:
Must-Read: Accounting for an invoice from another EU country