Exporting services to Spain from India works much like any other European client: invoice in euros, get paid into your Indian AD bank, and declare each invoice as a row on your monthly EDF with "Spain" in the Part 2B country column. The differences are mostly on the client's side — Spanish businesses handle their own VAT and tax reporting for services bought from abroad and may ask you for specific details — so agree those requirements before your first invoice.
Key takeaways
- Invoice Spanish clients in EUR unless agreed otherwise, and record EUR and the amount in each EDF row.
- Payment arrives either by international wire to your Indian bank or via a euro collection account and onward remittance; either way, your Indian receiving bank is normally your AD bank.
- India and Spain have a DTAA. If a Spanish client withholds tax, ask for proof and talk to your CA about credit in India.
- Each Spanish invoice must be realised within 9 months from its date, like any other services export.
Who buys Indian services in Spain
Spanish companies buy software development, IT support, digital marketing, design, engineering and back-office services from India, among others. Many deal with Indian suppliers in English, but some — especially smaller family businesses and regional firms — may prefer Spanish for contracts or invoice descriptions. A bilingual description line on your invoice can save a round of questions with their accountant.
Invoicing a Spanish client
Currency and amounts
The euro is the natural currency. Invoicing in euros spares your client conversion costs and makes approvals easier. If you invoice in USD or INR instead, say so clearly and record that currency in the EDF. Our guide to handling EUR, USD and GBP invoices on one EDF covers mixed-currency months.
What to show
- Your Indian legal name, address, GSTIN and PAN.
- The client's legal name, address in Spain and its Spanish tax identification number, which business clients will usually give you and expect to see on invoices.
- Invoice number, date, currency, amount and payment terms.
- A clear service description, plus the contract or order reference.
- If exporting under LUT: "Supply meant for export under LUT without payment of IGST".
Our export invoice generator has room for the client's tax ID and a contract reference.
The client's VAT
Under EU rules, a Spanish business buying services from a supplier outside the EU generally deals with Spanish VAT itself rather than paying VAT to you. The precise treatment is your client's responsibility and their adviser's call. What you should do is ask what they need on your invoice — some want a particular reference or note — and add it. Don't charge Spanish VAT yourself unless a qualified adviser tells you to.
Tax questions your client may raise
| Topic | What may happen | Your action |
|---|---|---|
| Withholding on payments to non-residents | Some payments to foreign suppliers may be subject to Spanish withholding | Agree gross vs net in the contract; ask for proof of any tax withheld |
| Treaty benefits | The India–Spain DTAA may reduce or remove withholding for some services | Ask your CA; a tax residency certificate may be needed |
| Supplier documentation | Vendor onboarding may ask for registration documents | Keep incorporation, PAN and GST certificates ready |
| Invoice details for their VAT | Client may need specific wording or references | Ask and add to your template |
We aren't quoting Spanish tax rates or rules here, because they depend on the service and change over time. The DTAA is the starting point for any treaty claim. If tax is withheld, keep the certificate and ask your CA about claiming foreign tax credit in India, which typically involves Form 67.
Getting paid from Spain
Two routes are common:
International wire to your Indian bank. The client sends euros by SWIFT to your Indian bank. Intermediary banks may deduct charges, depending on the charge option chosen. Your Indian bank credits the rupees and issues a FIRA, FIRC or advice with a purpose code.
SEPA to a euro collection account. The client pays a euro IBAN held by a provider, which then remits to your Indian bank. Spanish clients often prefer this because it's a familiar domestic-style euro payment. Our article on getting paid by SEPA explains the documents and matching.
Either way, ask the client to quote your invoice number in the payment reference.
Filling the EDF for Spanish invoices
Spanish invoices are ordinary rows in Part 2B:
- Country: Spain.
- Currency/amount: EUR and the invoice amount.
- NRV: what you expect to realise after any withholding or known charges, with a note in remarks.
- Description, SAC and contract details: as on the invoice.
They go on the same monthly EDF as your other foreign invoices, due 30 days from the end of the invoice month.
Worked example: a Kochi digital agency with a Spanish hotel client
Backwater Pixel Pvt Ltd, a digital agency in Kochi, runs online campaigns for a hotel group in Valencia and builds a booking website for a Madrid travel company. In January 2027 it raises:
| Invoice | Client | Work | Amount | Approx. INR | Payment route |
|---|---|---|---|---|---|
| BP/26-27/208 | Hotel group, Valencia | Campaign management, January | EUR 4,200 | ₹3.9 lakh | SEPA via collection account |
| BP/26-27/209 | Travel company, Madrid | Website build, milestone 2 | EUR 13,500 | ₹12.4 lakh | Wire to Indian bank |
Both go on Backwater Pixel's January EDF, alongside two UK invoices, due 2 March 2027 — January invoices fall due later than usual because February has 28 days.
The Madrid invoice is above ₹10 lakh, so when it's paid Backwater Pixel sends its bank the invoice, the FIRA and matching instructions. The Valencia retainer goes into a quarterly declaration of realisation. Both carry the LUT line, and both list the Spanish client's tax ID, which the clients requested during onboarding.
Realisation timing
Spanish clients often agree 30- or 60-day terms, which fit comfortably inside the 9-month realisation window. Delays tend to come from missing invoice details or vendor registration gaps, so get those right on the first invoice. If a payment stalls for a genuine reason, follow up in writing and, if needed, ask your AD bank for an extension before the 9 months run out.
This is general information, not legal or tax advice. Spanish VAT and withholding questions should go to a qualified adviser.
Frequently asked questions
Should I charge Spanish VAT on services to a Spanish company?
Generally, a Spanish business buying services from outside the EU accounts for VAT itself, so you don't add Spanish VAT. Your client and its adviser decide the treatment; ask them what they need on your invoice.
Can I invoice a Spanish client in Indian rupees?
You can if the client agrees, and RBI rules allow it. Rupee invoices have a 12-month realisation period instead of 9 months. Most Spanish clients will prefer euros.
Does a Spanish client need my tax residency certificate?
Only if they're considering treaty benefits on withholding, or their adviser asks for it. If they do, your CA can help you obtain one in India. Ask early, as it takes time.
What country do I put in the EDF if the Spanish client has an office in another country?
Enter the country of the service recipient you invoiced. If the client pays from another country, consider whether the third-party fields apply and ask your bank.
Can one EDF include Spanish, German and US clients?
Yes. One EDF per month covers all your service exports to one or more recipients. Each invoice is a separate row with its own country and currency.
Bottom line
Spanish clients fit neatly into your monthly EDF: invoice in euros, list each invoice with Spain in the country column, and sort out VAT details and any withholding at onboarding. Prepare the form in the free EDF form generator.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.