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V2473-24 9 December 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · devengo

Invoices must be issued for advance payments at the time of receipt

The inquirer asks whether an invoice should be issued before or after receiving an advance payment. The DGT rules that the tax accrues at the time of payment; therefore, the invoice must be issued at that moment.

The question raised

For the purposes of Value Added Tax, it is questioned what the timing for issuing an invoice is when an advance payment occurs, whether before or after making the payment.

The DGT's ruling

VAT is accrued at the time of total or partial collection of the price when advance payments occur. The invoice must be issued at the time of accrual, i.e., upon receipt of payment. If the recipient is an entrepreneur or professional, the invoice may be issued until the 16th day of the month following the collection. The invoice must state the date of issuance and, if different, the date on which the advance payment was received.

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