There are many more types of VAT-exempt invoices than might appear to be the case. Although there is a tendency to think that the only invoices that are exempt are intra-Community deliveries of goods, exports or economic operations assimilated to exports, this is not the case.
These are examples of full exemptions, but they are far fewer in number than the limited exemptions. Are you interested in finding out what these cases of VAT-free invoices are?
Examples of VAT-free invoices: simplify your accounting without errors
Title II “Exemptions” of the Law 37 / 1992, Chapter I “Supply of goods and services” details in its Article 26 exemptions from tax on domestic transactions. It should not be forgotten that, despite being exempt from VAT, an invoice is required for all these services, supplies and activities.
However, it must be specified that an exemption is granted under Article 20 of the Act. Among the cases in which the law states that an invoice may be issued without VAT are the following:
- Provision of services and deliveries of goods constituting the universal postal service.
- Provision of food services, accommodation, operating theatres, supply of medicines and medical supplies and other similar services provided by clinics, laboratories, sanatoria, etc. related to health and hospital care activities.
- Provision of medical, surgical and health care services relating to the diagnosis, prevention and treatment of diseases, including clinical analyses and radiological examinations.
- Deliveries of biological material for medical research purposes.
- Provision of medical specialist services.
- Provision of services to groups, unions or autonomous entities carried out directly to their members, provided that they meet the criteria laid down by law for giving rise to a VAT-free invoice.
- Activities carried out by the Social Security.
- Benefits provided by public law entities or private entities or establishments of a social nature in relation to assistance for the elderly, child protection, assistance for ex-prisoners and others included in article 20.8 of the regulation.
- Activities related to the teaching, care and custody of children and young people, with exceptions, such as sporting activities..
- Provision of private tutoring services.
- Transfers of personnel by religious entities to carry out the activities specified in the Law.
- Services provided by not-for-profit organisations to their members.
- Services provided to sportsmen and sportswomen in connection with their speciality, not including sporting events.
- Services provided by cultural entities under the terms of Article 20.14.
- Ambulance transport activities for the sick
- Insurance, reinsurance and capitalisation operations.
- Financial transactions included in paragraph 18, items (a) to (n).
- Deliveries of stamps and postage stamps.
- State Lotteries and Gambling.
- Supply of rural land that cannot be built on, parks and gardens and constructions essential for an agricultural building.
- Subsequent deliveries and transfers, as provided for in Article 22.
- Leases considered as services.
- Supplies of goods used in carrying out exempt transactions by the transferor.
- Supplies of goods where the total exclusion of the right to deduct in favour of the transferor has been determined.
- Professional services regulated in Article 26 of the Law.
- Provision of services and goods by political parties for the fulfilment of their specific purpose and organised for their exclusive benefit.
Receipt of a non-VAT invoice does not give rise to a right of deduction on the invoice. Income Tax Return. However, in most cases, the invoices received by the business are taxed by This tax, which can be recovered on a quarterly basis if diligent accounting is maintained.
To avoid mistakes when issuing a non-VAT invoice and not to lose sight of a single euro that can be recovered, it is useful to be supported by automated solutions. For example, an invoicing software, that facilitate management and boost savings.
