Well now that I've finished a web project for a local Spanish company, I have to send in a "facturaci�n" for the amount. The company sent me a copy of one so that I could use it as a model. They even tried to explain I.V.A. and I.P.R.F. to me to little avail.

Can anyone here tell me in plain English :b: how to figure out the I.P.R.F. and I.V.A.? From what I could make out, the guy said that my I.P.R.F. was based on how long I've been in Spain and how much I've earned so far and wasn't just 7% as shown below.

Here's the model:

quote:

* SERVICIOS DESARROLLO P�GINA WEB


BASE IMPONIBLE:       550,46.-
I.V.A. (16%):             88,07.-
I.R.P.F. (7%):     38,53.-

TOTAL FACTURA (EUROS ): 600,00.-

Thanks for any help.

- Roland
Freelance sucks

Hey Roland --

Actually, freelance is great once you get the hang of the invoicing process. However, I agree with you in that until you figure things out, it can be pretty frustrating.

The IRPF that you would deduct depends on the epigrafe that you registered for when you registered as an independent worker and how long you have been registered under that epigrafe.

For example. The standard IRPF for freelance English teachers is 18 or 19% of the invoiced amount(before taxes). However, for those who are newly starting out, there is a reduced IRPF of just 9%. After two years, you must start deducting the higher amount.

The IRPF is similar to the income tax in the USA. So, this percentage is DEDUCTED from all invoices that you send to clients. The client then becomes the responsible party to pay said amount to hacienda.

The IVA is similar to the USA sales tax. This percentage you ADD to all your invoices and then depending on how you do your taxes, you pay this amount to hacienda either monthly, quarterly or annually.

The benefit of billing IVA is that you can deduct any IVA that you pay (so keep a good record of your expenses).

English teaching alone is not subject to the IVA, so many freelance English teachers find themselves in a quandry when they have to pay IVA for their supplies, but cannot deduct it anywhere.

I am not certain of the IRPF amount, nor IVA amount for web design.

If you have any other questions, feel free to give us a buzz!

hey Roland, that "impuesto sobre la renta de las personas f�sicas" stuff is easy to get a hold on.

to make a long story short, i am pretty sure that sample bill is right, your irpf is 7% for the first 3 years now if you registered as aut�nomo after the reform of 2003. the 9% Chica mentioned dropped to 7% with the recent reforms (jan. 2003)

in 2003 the 18% (standard minimum irpf for most "aut�nomos") also dropped to 15% for those who have been "aut�nomos" for at least 3 years

Roland, your "ep�grafe" woudl be "inform�tico" as that is the main category web designers fall under.

good news is as an "inform�tico", you can declare the iva that you spend on all the techy toys you buy

good info on becoming "aut�nomo" at www.canaltrabajo.com/autonomos/guias.php?id_especial=2&indice=s

saludos,
jer...

Thanks Chica and Jer for the quick and detailed response.

One question. I looked at the www.canaltrabajo.com site but the "Informatica" area was being remodeled.

It wasn't quite clear where I need to go to register as a freelance since I haven't actually done that yet. Is there a single place to go or do I have to find out which place is serving my area?

Thanks for the help.

- Roland
p.s. the "freelance sucks" part was mostly due to the fact that so far I've earned the equivalent of �4/hr for designing a Flash/Web site that the client insisted on breaking most of the rules on. So I can't even show it to other clients without cringing.

quote:

your irpf is 7% for the first 3 years now if you registered as aut�nomo after the reform of 2003. the 9% Chica mentioned dropped to 7% with the recent reforms (jan. 2003)

Jan. 2003 or Jan. 2004?? I was told it was 9% back in September. I checked out the site you posted jer, but didn�t see mention of the percentage amount one has to pay.

Roland, sorry for the not-up-to-date information, but at least the concept was on!