The tax regulation in Spain (Royal Decree 1619/2012) establishes the language and currency to invoice.
The language of invoices
The company can issue and receive invoices in any of the official languages spoken in Spain (Spanish, Catalan, Galician, or Basque), as well as in foreign languages. Only if the company is subject to control can the tax authorities require a translation in the following terms:
- In all cases, invoices received may require a translation
- Invoices issued may require a translation for transactions subject to Spanish VAT, as well as for exports and intra-community exports and deliveries
- Invoices for services provided abroad and not subject to Spanish VAT may not require a translation
The currency of invoices
On invoices where Spanish VAT is charged, the VAT tax must appear expressed in euros. Thus, if a Spanish company purchases products from an American multinational company operating in dollars and the invoices are in said currency, to deduct the VAT, it must appear expressed in euros.
For calculation purposes, the conversion applies the seller’s exchange rate fixed by the European Central Bank valid at the date of the accrual of the tax.
This article is not considered as legal advice