Spain starts countdown to major invoice change affecting autónomos and businesses

The Spanish government has set a deadline for millions of self-employed individuals and small business owners to transition to electronic invoicing. This change, which goes beyond simply replacing paper invoices with PDFs, will affect businesses of all sizes and types, including foreign residents who work for themselves. The transition will occur in two phases, with businesses that have annual turnover exceeding €8 million having a shorter timeline of 12 months until around October 2027.

The rest of the population, including self-employed individuals, will have 24 months, or until around October 2028, to comply with the new regulations. An electronic invoice under the new system must be a structured file, using formats such as UBL or Facturae, which can be easily read and exchanged by software. The recipient of an invoice will also be required to report on its status, including acceptance, rejection, and payment, within four working days.

Hacienda, Spain's tax agency, will provide a free public platform for creating and sending invoices, as well as a central storage for all invoices processed through the system. Users will have to log in using a digital certificate or Cl@ve, Spain's online ID system. The rule primarily applies to invoices between businesses and professionals based in Spain, but not to sales to private individuals or simplified invoices.

Foreign residents who primarily invoice Spanish companies or other self-employed individuals will be included in the system. Business owners are advised to consult their accountants or invoicing software providers to ensure compliance with the new regulations.