Example invoice for professional services
According to article 70.1 of the VAT law, the operation is not subject in the territory of application of the tax, so we must invoice without VAT, indicating this circumstance in our invoice. Nevertheless, we must inform of the operation in the model 303 of VAT.
In general, invoices issued for the provision of professional engineering and consulting services to EU companies should not include VAT, as they are taxable and exempt transactions. However, both the professional and the client must be registered in the ROI as intra-community operators, this can be done by modifying the form 036 of registration of the activity.
“Income obtained by a resident of a Contracting State for the rendering of professional services or the exercise of other independent activities of a similar nature can only be subject to taxation in that State, unless the said resident has a fixed base in the other Contracting State for the exercise of his activity.
Sample Services Invoice
Describes the various services rendered, listing each as a separate item. Normally you will bill by the hour. To see an example of an invoice per project, visit this link on architectural, engineering and consulting services.
If you are a professional freelancer, you should only invoice with IRPF (15% withholding; only 7% for new freelancers), in case the client is a company or freelancer. Example: professional registered in Group 777. “Specialists in personnel matters and professional guidance and analysis” of the IAE of Professional Activities. If you were registered as self-employed in business activities, you should not withhold income tax on your invoices, even if your client is a company or self-employed. The consultant invoice model that you can see above is an example of a professional self-employed person registered in Group 777 who invoices a company. Therefore, there is IRPF withholding.
You have two possibilities: to apply a default discount to a specific client or to apply a discount to a specific item on your invoice. When you set up each client, you can set a certain discount for this client to be shown on all items of the invoice. The taxable subtotal of the invoice will decrease accordingly:
Invoice for professional fees example
However, those who exclusively deliver goods or provide services free of charge will not be considered as businessmen or professionals, without prejudice to the provisions of the following letter.
Article 5, paragraph two, of the Tax Law defines business or professional activities as “those that involve the management on their own account of material and human factors of production or one of them, with the purpose of intervening in the production or distribution of goods or services.
In particular, extractive, manufacturing, trade and service activities, including handicrafts, agriculture, forestry, livestock, fishing, construction, mining and the exercise of liberal and artistic professions are considered as such.
In addition, Article 11 of Law 37/1992 defines the taxable event for the rendering of services as “any transaction subject to the aforementioned tax which, in accordance with this Law, is not considered to be a delivery, intracommunity acquisition or importation of goods”.
How to bill for consulting services
Most of us are employed professionals. We work for companies or administrations that pay us a salary every month. But sometimes we need to invoice for the performance of a professional service, such as the performance of an expert’s report, an opinion, a conference, a consultancy, etc.
Most of us are employed professionals. We work for companies or administrations that pay us a salary every month. But sometimes we need to invoice for the performance of a professional service, such as the performance of an expertise, an opinion, a conference, a consultancy, etc.
Basically what you need to do is to issue an invoice to collect for those services rendered, but issuing an invoice is an act that involves a series of procedures to comply with the tax authorities and, if applicable, with the Social Security.
The first step is to regularize your situation with the Tax Authorities, for which you must register in the Census of Taxpayers. If the activity is sporadic, you can deregister the following day, once the invoice has been issued.