Can I bill clients without being registered as self-employed?

“Being registered with the tax office is obligatory if you want to issue any kind of commercial document,”. So if a client asks you for an invoice, you will have to register your specific activity with the tax office – this is called the impuesto de actividades económicas (IAE), or tax on economic activities. This doesn’t cost anything and doesn’t mean you are registering as self-employed – which is done at your local Social Security office.

But if you want to avoid problems, you’ll also have to make a quarterly sales tax (IVA) declaration, paying back the tax added to your invoice, as well as applying income tax to your bill (IRPF).

There are some activities that don’t require an invoice, such as those involving training or the arts. This would be the case of a teacher who gives occasional presentations at conferences. “These activities are considered earned income and not economic activities,” . In such cases, you don’t have to apply sales tax, just income tax.

For more details please contact VP Advisers