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If you find yourself at the disposal of several commercial premises, surely you have thought about renting one of them to another company or a freelancer. This is a great option since the place that you are not using will become another source of income.

If you are faced with this case and you plan to rent a place, it is possible that you are not very clear on how to make the invoice that must be delivered to the tenant.

Data to include in the invoice for the rental of a premises

The model and procedure to be carried out for an invoice for renting premises must be the same as those for Invoices made for other sales and/or provision of services. What information is necessary to cover the invoice? What type of VAT affects the rent? We will answer these questions below.

Invoice number

Any invoice that is issued must be numbered and must follow a relationship with those previously issued. It is not possible to jump from one to another, the next invoice that is issued has to be the one following the previous one issued. For example, if the invoice issued now is F-2019/004, the next invoice will be F-2019/005, the next F-2019/006

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Sender and receiver data

If the tenant is a self-employed person, a company, or an individual, their tax data must appear on the invoice. The necessary data are:

  • Name or business name of the company.
  • The NIF (Tax Identification Number) if it is autonomous.
  • The CIF if it is a company.
  • The DNI if it is private.
  • The complete fiscal address.

Service description

The landlord must indicate the reason for the income received. In addition, information on the activity to be carried out on the premises as well as the characteristics of the property will be included. For example:

VAT tax rate

First of all, if you want to rent business premises to a company or self-employed to carry out its economic activity or to an individual for anything other than a habitual residence, you must register with the Treasury. This is because the lease is a type of provision, provision of services, subject to VAT.

When a self-employed person or a company participates, the invoice will go with the 21% tax. The VAT must appear clearly and specifically, as well as the tax rate, which must be specified since it implies the amount of VAT that is added to the available base, the rental price that has been previously agreed. Taxes are not included in this price.

In the event that this lease is the only activity to present in the VAT return, the owner is not obliged to submit the annual summary of this tax. As a lessor, you will only have the obligation to present a document with additional information in the VAT return for the fourth quarter.

There can be two different cases:

  • When the property belongs to a natural person, the withholding base will be the sum of the rent plus expenses.

IRPF withholdings

These withholdings are 19% applicable and must be applied when a tenant is a self-employed person or a company. This withholding will affect all those expenses that are passed on to the tenant by virtue of the lease, such as expenses for water, electricity or gas supplies, or community expenses.

On the invoice, it will appear below VAT. Next, we will see an example of how it would be applied:

Taxable rental base (rental price without tax): € 1000

We add the 21% VAT: (21% on 1000) = 210. 1000 € + 210 = 1210 €

We make the IRPF Withholding of 19%: (19% on 1000) = 190. 1210 – 190 = € 1020

Total amount of the invoice = € 1020

There may be cases where this Withholding will not take place:

  • If the annual rent is less than € 900, they do not apply.
  • If the landlord is the Public Administration.

So far, everything that has to be included in the realization of an invoice. As you can see, there are few requirements, and not much data is needed.