What is a simplified invoice?

The simplified invoice (factura simplificada), sometimes known as a simple invoice (factura simple), is one of the key concepts in the accounting of any self-employed worker, SME, or large company. It is a specific type of invoice that, since 2013, has replaced the former till receipt (ticket), and it must meet a series of requirements to be valid. In this article, we explain when to use a simplified invoice and what any simplified invoice template must contain.

This type of invoice may be used instead of an ordinary invoice in certain cases. The mandatory content of a simplified invoice is more limited than that of an ordinary invoice, which is why its use is reserved for low-value or less significant transactions.
Content of a simplified invoice
To be valid, a simplified invoice must contain:
• The invoice number and, where applicable, its series.
• The date of issue and the date of the transaction.
• The Tax Identification Number (NIF), as well as the full name or full corporate or business name, of the party required to issue it.
• Identification of the type of goods supplied or services rendered.
• The applicable tax rate (optionally, also the wording “VAT included” (“IVA incluido”))
• The total amount
In the case of a corrective invoice (factura rectificativa), we must expressly refer to the data that have been amended and to the invoice to which the correction corresponds.
What is the difference between an invoice and a simplified invoice?
The main difference between an ordinary invoice and a simplified invoice is their content: essentially, a simplified invoice does not need to specify (with some exceptions) information about the recipient of the invoice, that is, about the person or company that contracts for a service or purchases goods.
These details must, however, appear on an ordinary invoice. Some examples of simplified invoices are those issued every day in small commercial transactions at grocery stores, hair salons, restaurants…
What is the maximum amount of a simplified invoice?
There is a maximum amount for a simplified invoice: if the price of the service or goods exceeds €400, VAT included, an ordinary invoice must be issued.
This maximum limit is raised to €3,000, VAT included, for the following transactions:
• Retail sales (including those made by the manufacturers or producers of the goods supplied).
• Itinerant sales or services.
• Sales or services at the consumer’s home.
• Transportation of passengers and their luggage.
• Hospitality services provided by restaurants, bars, cafés, horchata bars, chocolate shops, and similar establishments, as well as the supply of food or beverages for immediate consumption.
• Services provided by nightclubs and dance halls.
• Telephone services provided through public pay phones, as well as through cards that do not allow the holder to be identified.
• Services provided by hair salons and beauty salons.
• Use of sports facilities.
• Photo developing and services provided by photography studios.
• Use of sports facilities.
• Vehicle parking.
• Film rental.
• Dry-cleaning and laundry services.
• Use of toll roads.
All of these transactions may be documented by means of a simple invoice, provided that they do not exceed €3,000, VAT included.
When can a simplified invoice be issued?
A simplified invoice may be issued:
– When its amount, VAT included, remains within certain limits: in general, less than €400, or up to €3,000 in the case of certain services.
– When it is a corrective invoice.
For both simplified and ordinary invoices, a copy of the invoice must be delivered to the customer or buyer, and the issuer must keep a copy.
When can a simplified invoice not be issued?
It is important to know that there are certain cases in which a simplified invoice cannot be used, regardless of the amount of the transaction:
• Intra-Community supplies of goods.
• Distance sales.
• Transactions carried out outside the territory of application of the tax rates applied.
• Transactions subject to the reverse-charge mechanism (inversión del sujeto pasivo).