VAT-free invoice: yes, it is possible

Examples of VAT-free invoices: simplify your accounting without errors

Title II “Exemptions” of the Law 37 / 1992, in its Chapter I, “Supply of Goods and Provision of Services”, it details in its article the twenty-six exemptions from the 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 will need to be specified within it that, by virtue of Article 20 of the aforementioned Law, an exemption occurs. Among the Cases where the Law states that an invoice can be issued without VAT are the following:

1. Provision of services and deliveries of goods constituting the universal postal service.
2. Provision of catering, accommodation, operating theatre, supply of medicines and medical supplies, and similar services provided by clinics, laboratories, and sanatoria. related to health and hospital care activities.
3. Medical, surgical, and healthcare assistance benefits, relating to the diagnosis, prevention, and treatment of illnesses, including clinical analysis and radiological examinations.
4. Delivery of biological material for medical research purposes.
5. Provision of specialist medical services.
6. Provision of services to associations, unions or autonomous entities carried out directly for their members., whenever they meet the criteria laid down by law for being able to issue an invoice without VAT.
7. Activities carried out by the Social Security.
8. Services provided by public law entities or private entities or establishments of a social nature relating to care for the elderly, child protection, assistance to ex-offenders, and others covered by Article 20.8 of the regulation.
9. Activities related to the teaching, care and custody of children and young people, with exceptions, such as sporting activities..
10. Provision of private tutoring services.
11. Transfers of personnel by religious entities to carry out the activities specified in the Law.
12. Services provided by not-for-profit organisations to their members.
13. Services provided to athletes in relation to their speciality, excluding sporting events.
14. Services provided by cultural entities within the terms of Article 20.14.
15. Ambulance transport activities for the sick
16. Insurance, reinsurance, and capitalisation operations.
17. Financial operations covered in section 18, sub-sections a) to n).
18. Deliveries of stamps and postage stamps.
19. State Lotteries and Betting.
20. Deliveries of non-building rustic land, parks and gardens, and essential constructions for agricultural buildings.
21. Subsequent deliveries and transmissions, as stipulated in Article 22.
22. Leases considered as services.
23. Deliveries of goods used in the performance of exempt operations by the transferor.
24. Deliveries of goods where the total exclusion of the right to deduct had been determined in favour of the transferor.
25. Regulated professional services under Article 26 of the Act.
26. Provision of services and delivery of goods carried out by political parties for the fulfilment of their specific purpose and organised for their exclusive benefit.

When receiving an invoice without VAT, no right to deduct arises. Income Tax Return. However, in most cases, the invoices received by the business are subject to tax This tax, which can be recovered on a quarterly basis if diligent accounting is maintained.

To avoid errors when issuing an invoice without VAT and to keep track of every euro that can be recovered, it is advisable to have the support of automated solutions. For example, invoicing software, which facilitates management and drives savings.