In many respects online businesses are similar to physical ones. The need for registration, invoicing, collecting and keeping invoices and, of course, paying tax remains. There are some difference in the treatment of the IVA though.
The RE Tax System is a simplified IVA tax system for retailers that aims to reduce the amount of paperwork. It is compulsory for retailer businesses run by self employed individuals. How does it work? Do you need to apply the RE system to any of your clients?
When a freelancer works from home he should notify it to Hacienda, along with the area of the house that is used for the business and the percentage that this represents of the total if he is going to deduct expenses of utility bills and house related costs.