Freelancers are required to make invoices when they sell their products, but how do you make these invoices if you are self-employed? In this article we will tell you the steps you must follow, the information that the document must include and some tips to make it easier for you to manage.
When a person decides to start an economic activity without creating a company, they must register as self-employed. For practical purposes, it is similar to having a company in that you can hire employees, sell goods and services, and comply with certain tax obligations such as keeping accounts and issuing invoices.
Invoices are a fundamental element in any economic activity, since they are used whenever a sale or purchase operation is carried out. The invoice is issued by the seller and is a commercial document that reflects the purchase agreement of a good or service.
Making an invoice correctly is very important because it must contain all the information regarding the operation. It must include the date, who is the seller or the taxes to be paid, among other information.
But let’s get to the point, how do you make an invoice?
How to make an invoice as a freelancer?
Every invoice issued in Spain must contain very specific data. Depending on the type of freelancer you are, you will have the obligation to add additional information or not to do so.
- Date: The date on which the operation is performed must be reflected. For example, if you carry out graphic design projects, generally the date will be the moment in which you deliver the created content.
- Invoice issuer: All the fiscal data of the self-employed must be collected here. The data required are the name and surnames, fiscal address and DNI.
- Invoice recipient: The recipient of the invoice is the buyer. In this case, you must include the fiscal data of the same. If it is a company, it will be necessary to indicate the company name, the fiscal address and the CIF. If you are self-employed, your name and surnames, fiscal address and DNI.
- Invoice number: All invoices issued by a self-employed must be numbered. Later we will explain how to number your invoices correctly.
- Description of the product sold: In this section, the product or products sold must be mentioned, whether they are goods or services.
- Product sale price: All freelancers must indicate the selling price of each of the products sold. These prices may or may not include the amount of VAT.
- Tax base: It is the total sum of the sales prices without VAT on which the tax rate will be applied.
- Tax rate: It is the percentage of VAT that is applied on the commercialized products.
If you are a self-employed professional, such as economists, you will also have to include the information regarding the withholding that the company that hires your services will apply to you. This withholding is aimed at paying the Personal Income Tax (IRPF).
How do I number my self-employed invoices?
There is no specific rule about the numbering of invoices by a self-employed person. What you do need to know is that the numbering must be correlative between them and follow the same pattern throughout the exercise.
Therefore, you must choose a numbering form that can include letters, numbers, hyphens, bars or underscores. Remember that the numbering must be consecutive, which means that if you issue invoice 1-1201 today, the next one will have to be 1-1202, for example.
Is it worth hiring an agency?
As you can imagine, the process of making invoices, filing tax returns or keeping accounts will take time away from you that you can’t spend on what really makes you money.
Therefore, if your volume of work is high and you have little free time, using invoicing software or a digital agency can help you a lot. Digital agencies for freelance in Spain are an increasingly popular alternative.
This is because thanks to the technological advances that we enjoy today, with a digital agency you will not have to go anywhere, you will not worry about registering with social security and you will have an agent at your disposal at all times for what you need A good example of this type of digital agencies is XOLO.
In conclusion, billing is very important if you are self-employed, since it is the proof of each of the operations you carry out, so it is an aspect that you should not neglect.