Tax settings

Open your tax settings

Click the cog in the top bar, then Tax. The card Tax defaults sets the defaults every new invoice, quote and product starts with. You can still change the VAT rate, tax treatment and IRPF on each individual invoice. Change what you need and click Save settings.

The tax names follow the country in your business profile: IVA in Spain and Italy, VAT in the UK, TVA in France, and so on. Set the country there first.

Not sure which rates or registrations apply to you? Check with your gestor or accountant. Invoice 14 applies the settings you choose, but it can’t tell which ones are right for your situation.

Set your VAT registration and default rate

• •Registered for IVA / VAT: leave it ticked if you charge VAT. Untick it if you aren’t registered, for example a UK sole trader below the VAT threshold. Your invoices then carry no VAT at all, every invoice is domestic, and the reverse charge isn’t offered.
• •Default IVA / VAT %: the rate new invoice lines and products start with, for example 21 in Spain or 20 in the UK. It is greyed out while you aren’t registered. You can pick another rate (10 %, 4 %, 0 %…) on each line.

For customers in other EU countries or outside the EU, Invoice 14 suggests the right tax treatment (reverse charge, export) from the customer’s country and VAT number, whatever your default rate. See Tax treatments and IRPF.

Set IRPF withholding (Spain)

Spanish autónomos usually have IRPF withheld when they invoice a business or another professional. The customer keeps part of the invoice and pays it to the tax agency on your behalf. Invoice 14 shows the withholding as a deduction under the total.

• •IRPF withholding: tick Apply by default to switch IRPF on for new invoices.
• •Default IRPF %: the usual rate is 15 %. New autónomos can apply 7 % in their first years of activity.

Even when IRPF is on by default, it is only switched on automatically when you are a Spanish issuer invoicing a Spanish customer. For anyone else it starts off, though you can still tick it by hand on the invoice.

• •Private individuals don’t withhold IRPF. Open the customer and set their IRPF default to Do not apply, so you don’t have to untick it each time. See Customers.
• •Companies (SL, SA…) don’t normally have IRPF withheld. If your legal form is a company, a hint under the checkbox reminds you. Switching your legal form in your business profile resets this setting.

Choose your currency

Currency is the currency of new invoices and quotes, and the currency your product prices are shown in, such as EUR, GBP or USD. Changing it doesn’t convert anything: invoices you have already issued keep their currency, and product prices keep their numbers.

If your country is Spain and you pick a currency other than EUR, you see: “Spanish VAT invoices must report amounts in EUR — use a non-EUR currency only for documents outside Spanish VAT.”

Reports list invoices in other currencies separately, because tax forms only take amounts in your reporting currency. See Reports overview.

If VERI*FACTU is on

VERI*FACTU records are defined in euros for a VAT-registered Spanish issuer. While VERI*FACTU is on, you can’t change your currency or VAT registration. Saving gives the error “Disable VERI*FACTU before changing…”. Switch VERI*FACTU off first if you really need to. See Set up VERI*FACTU.