IRPF Withholding on Invoices from Professionals and the Self-Employed
What IRPF withholding is
IRPF withholding is an advance of the tax that the payer deducts from the professional's invoice and pays to the Tax Agency on their behalf. It is not an extra cost: it is deducted from what the professional would pay in their tax return.
When it applies
It applies when a self-employed professional invoices a company or another self-employed person (B2B transactions). It does not apply when invoicing a private individual (final consumer).
- Professionals: general withholding of 15%.
- New self-employed: 7% during the year of registration and the following two.
- Agricultural, livestock and other activities: specific percentages.
Withholding only appears on invoices to companies or the self-employed, never on invoices to private individuals.
How it is reflected on the invoice
- Taxable base.
- Plus VAT (according to the applicable rate).
- Minus IRPF withholding (on the taxable base).
- Total to be received.
Example: base €1,000 + 21% VAT (€210) − 15% IRPF (€150) = €1,060 to collect.
With RegulaKit you configure IRPF withholding and it is calculated automatically on your professional invoices. Discover it on our platform.
Conclusion
IRPF withholding is key on invoices from professionals to companies. Applying the correct percentage and reflecting it well avoids errors in the tax return and in collection.
Frequently Asked Questions
What is IRPF withholding on an invoice?
An advance of the tax that the payer deducts from the professional's invoice and pays to the Tax Agency on their behalf.
When is withholding included?
When a self-employed professional invoices a company or another self-employed person; not on invoices to private individuals.
What withholding percentage applies?
The general one is 15%; new self-employed can apply 7% in the year of registration and the following two.
Is withholding a cost for the professional?
No. It is an advance that is later deducted from what they would pay in their IRPF return.
How is it reflected on the invoice?
Taxable base, plus VAT, minus IRPF withholding on the base, and the total to be received.