Invoicing for visa services: In the name of the professional or the university?

The correct identification of the recipient in an invoice is an essential requirement for the validity of the operation and the subsequent tax deduction. Recently, the Directorate General of Taxes (DGT) has resolved a common question regarding the issuance of invoices for professional visa services when the registered professional works for a public entity.

What the DGT has ruled

The query concerned whether invoices for visa services could be issued directly in the name of the public university for which the consulting architect works. The DGT has determined that the recipient of the invoice must be the party performing the operation and occupying the position of creditor in the legal relationship.

The ruling establishes the following:

• If the professional is the party obligated to pay, the invoice must be issued in their name, regardless of whether the university makes the actual economic disbursement.
• In the event that the professional acts on behalf of the university due to professional association regulations, the invoice must name the professional, but also include a mention of the entity under whose employment they act as the recipient.

What this means for you

This ruling has direct implications for registered professionals and the entities that contract their services. For the professional, it is fundamental to distinguish whether they are acting in their own name or on behalf of their employer at the time of receiving the visa service. For entities, such as universities or companies, it is necessary to ensure that the invoice correctly identifies the actual recipient of the operation to avoid problems regarding Value Added Tax (IVA) deductibility.

What should be done

When issuing invoices for visa services, it is necessary to verify the nature of the legal relationship between the professional and the paying entity. It must be checked whether the professional is acting on their own account or if there is a regulation that allows them to act on behalf of the institution. It is essential that the accounting documentation accurately reflects who holds the position of creditor in the legal relationship to comply with current regulations.