Invoicing clients outside the European Union follows different logic than intra-community transactions, with its own rules on when to charge VAT and what documentation you should keep to support the transaction.
The general rule: exports and services without VAT
As a general rule, both the sale of goods exported outside the EU and the provision of certain services to business clients established outside the EU are invoiced without Spanish VAT, since they're treated as non-taxable or exempt transactions depending on the specific type of operation.
Why it isn't exactly the same as an intra-community transaction
Unlike transactions within the EU, where the VIES system exists to verify the client's status as a business, transactions with third countries are governed by rules on where the service is deemed to take place and, in the case of goods, by export customs documentation that proves the goods actually left EU territory.
What documentation you should keep
- For exported goods: the single administrative document (DUA) for export or other equivalent customs documentation proving the goods actually left the country.
- For services: contracts, business correspondence, and any evidence proving the client is a business established outside the EU and where the service was actually provided.
Without this documentation, if a tax audit occurs, the exemption applied could be challenged and payment of the corresponding VAT could be demanded.
Digital services and specific rules
Certain services provided electronically to final consumers (not businesses) may have specific location rules, different from those applicable to business-to-business services, so it's worth carefully reviewing the exact nature of each transaction before determining the applicable VAT treatment.
Form 349 doesn't apply to non-EU transactions
Unlike intra-community transactions, transactions with countries outside the EU aren't reported on form 349, although they must still be correctly reflected in your accounting and on the quarterly form 303 as exempt transactions.
Keep calculating your domestic transactions correctly
Although these international transactions are usually invoiced without VAT, our VAT calculator remains useful for the rest of your domestic invoicing subject to the tax.