Which books and records to keep, and for how long

Terms used

• Factura completa — The factura completa is a full invoice naming the customer with their NIF, showing the tax base, VAT rate and VAT amount.
• Factura simplificada — The factura simplificada is a simplified invoice or ticket for small amounts that does not name the customer.
• NIF — The NIF is the tax identification number used on invoices and tax forms.
• Asesor — An asesor is an adviser, usually a gestor or accountant, who handles tax and bookkeeping for you.
• Módulos — Módulos is the objective estimation regime, where profit is calculated from set indicators rather than actual income and expenses.

Key rules

• Retention period: Keep invoices and books for at least 4 years for tax purposes, and 6 years for commercial records.
• Books follow your regime: Your income tax regime, and whether you are a professional or run a business, decides which books you must keep.
• VAT registers: If you charge VAT, keep registers of issued invoices, received invoices and investment goods.
• Full invoices: Get a full invoice in your name and with your NIF for any expense where you want to deduct VAT.
• Digital storage: You can keep invoices only in electronic form if they stay authentic, complete, readable and reachable by the tax authorities.

The short answer

The books you must keep depend on your income tax regime and on whether you are a professional or run a business. On top of that, if you charge VAT you must keep VAT registers. Keep invoices and books for the periods in the key rules above. The decision, documents, timeline and checklist below cover the detail.

Income tax books

Your regime sets the books:

• Normal direct regime, business activity: full accounting (a journal, an inventory book and annual accounts), plus the tax books.
• Simplified direct regime, business activity: three registers. They cover sales and income, purchases and expenses, and investment goods. The tax rules let you skip double-entry accounting. Commercial law formally applies to mercantile activities, so ask an asesor how it applies to yours.
• Professionals, either direct regime: a book of income, a book of expenses, a book of investment goods and, if relevant, a book of client funds and outlays. Double-entry accounting is not required.
• Módulos (objective estimation): keep the invoices you receive and the investment goods register if you deduct depreciation. Some activities also need a sales register. The yearly module order sets the details for your activity.

Books can be kept electronically.

VAT registers

If you are registered for VAT, keep a register of issued invoices, a register of received invoices and a register of investment goods. Add a register of certain EU transactions if you trade within the EU.

• Issued invoices: number and series, date, customer name and NIF, tax base, VAT rate and amount, and the total.
• Received invoices: the same details for the supplier, plus the date you received it and the deductible part.
• Investment goods: purchase and start-up dates, price, VAT paid, the deduction and later adjustments.

Enter invoices promptly. The usual limit is 4 days from the invoice date or from receipt. Businesses on the monthly-refund system or the large-company system file their registers through the tax agency's online office instead.

Invoices that count for deductions

Ask for a full invoice (factura completa) in your name and with your NIF for every expense you want to deduct. A simplified invoice (factura simplificada, the old ticket) does not name you, so it generally does not give you VAT deduction. It is allowed for amounts up to 400 euros including VAT, and up to 3,000 euros in some sectors such as retail, transport and hospitality. If you need the VAT back, ask the supplier for a full invoice.

For income tax, an expense must be linked to your activity, entered in your books and properly backed up. Cash payments between businesses are limited to 1,000 euros.

Storing records

Electronic-only storage is allowed. The invoice must stay authentic, complete and readable until the end of the retention period. The tax authorities must be able to reach it quickly, including online, and you must be able to print or export it.

• You can scan paper invoices and destroy the paper if the scan is a faithful, legible image with all the data.
• You can store records on a server outside Spain if online access is guaranteed.
• Invoicing software is subject to new anti-fraud software rules, so check what your program must comply with.

Longer retention

Some records must be kept longer than the standard periods. For property treated as investment goods, keep records for the full VAT adjustment period, which is 10 years for real estate, plus 4 years. Companies carrying forward tax losses must keep documents for 10 years.

Choosing between options

Which income tax books do you need to keep?

• Full accounting plus tax books: You run a business activity in the normal regime, or your activity is mercantile. Keep the daily ledger, inventories and annual accounts.

• Three registers: You run a business activity in the simplified regime. Keep a register of sales and income, one of purchases and expenses, and one of investment goods.

• Professional books: You are a professional in the normal or simplified regime. Keep income, expenses and investment goods books, plus a book of client funds and outlays if applicable.

• Invoices received and investment goods book: You are in the módulos regime. Keep received invoices and the investment goods book if you deduct depreciation, plus a sales register if your activity requires it.

Your regime and whether you are a business owner or a professional decide the books. Mercantile activities may still need full accounting.

Timeline and deadlines

• Enter each issued or received invoice in your VAT registers: within 4 days of the invoice or document, or of receiving it

• Keep invoices and books for tax purposes: for at least 4 years

• Keep commercial records, correspondence and supporting documents: for 6 years from the last entry

Documents you need

• Full invoice (factura completa) for each expense, issued to you with your name and NIF, showing the tax base, rate and VAT amount. You need it to deduct the VAT.

• Simplified invoice or ticket for small purchases. It does not name you, so it generally does not allow VAT deduction unless you ask the supplier for a full invoice.

• Register of issued invoices, with number, date, customer name and NIF, tax base, VAT rate and amount, and total.

• Register of received invoices, with the same details for the supplier, the date you received it and any deductible portion.

• Register of investment goods, with purchase and start-up dates, price, VAT paid and deduction. You need it if you buy business assets.

Checklist

• Find out your income tax regime and keep the books it requires: income, expenses and investment goods registers.

• Keep full accounting if your regime or mercantile activity requires it.

• Ask suppliers for full invoices in your name and NIF for every expense you want to deduct.

• Store invoices so their origin, content and legibility stay intact and the tax authorities can reach them online.

• Confirm that scanned paper invoices are faithful, legible images before you destroy the paper.

Frequently asked questions

Can I keep my invoices only on my computer?

Yes, you can keep invoices only in electronic form, as long as they stay authentic, complete and legible until the end of the retention period. The tax authorities must be able to get timely online access, and you must be able to print or export them.

Can I store my invoices on a server outside Spain?

Yes, you can store invoices outside Spain, provided the tax authorities can still access them online. Make sure you can export or print them whenever asked.

Does a ticket or simplified invoice let me deduct VAT?

No, a simplified invoice generally does not let you deduct VAT, unless you ask the supplier for a full invoice with your name and NIF. A full invoice shows the tax base, rate and VAT amount. For income tax, a ticket without your details can sometimes support the expense if it has enough detail.

Do I need full double-entry accounting if I am in the simplified regime?

Not for income tax: in the simplified regime you can keep only the tax books. If your activity is commercial (mercantile), commercial law may still require full accounting, so ask an asesor about your activity. Professionals never need double-entry in this regime.

Are any invoices to be kept longer than the usual period?

Yes, invoices for investment goods such as property must be kept for the full 10-year VAT adjustment period plus 4 years. Records behind company tax losses carried forward must be kept for 10 years.