The first invoice a UGC creator sends in Spain almost always brings the same surprise: the amount you write is not the amount that arrives in your account. It is not a client error and it is not a hidden fee, it is how an invoice from a registered self employed person to a company works.
The two moving parts
VAT is added. You add the applicable VAT to your fee. That money is not yours: you collect it and later declare it.
Income tax withholding is subtracted. When you invoice a company or another professional in Spain, the company withholds a percentage on account of your income tax and pays it to the tax authority in your name.
The result: if your fee is 500 euros, the invoice adds VAT and subtracts the withholding, and the transfer you receive is a different number from both. The withheld money is not lost: it counts in your favour in the annual tax return.
How to quote without confusing the client
Always give the base price and say explicitly that it excludes VAT. Add a line with the total including VAT, and another with the approximate transfer amount if the client applies the withholding.
A company client understands that format immediately, because it is how they receive every invoice. A private individual does not apply withholding, so their invoice is simpler, and it is worth saying so, so they do not think you charge them differently.
What the invoice must contain
Your name and tax number, the client's tax details, a sequential invoice number, the date, a description of the service, the taxable base, the VAT rate and amount, the withholding if applicable, and the total. Without those elements, an accounts department sends it back and the payment slips by a month.
Keep every invoice you issue and receive. Expenses related to your activity, equipment, software, part of your phone or internet, can be deducted when they are justified and genuinely used for the work. That is the part worth discussing with an accountant once and setting up properly from the start.
The most expensive mistake
Working without an invoice because the client suggested it. Beyond the legal problem, it leaves you with no leverage if they do not pay and no deductible expenses. And the brands and agencies that pay well do not work that way.
Where to go next
Invoicing properly is what turns occasional jobs into an activity. Our guide on how to become a UGC creator covers pricing, usage rights and landing the first clients.
