EUR, IVA and local levies: correct Spanish hotel invoices

Why Spain has special rules

Spanish hotels invoice in francs and apply a special IVA rate to accommodation, different from the rate for other services such as food. In many places a local levies also applies, which differs by city and person. Foreign software is often not prepared for this.

If the invoice does not separate these items cleanly, accounting has to rework them and guests ask questions. A Spanish solution models the rules correctly from the start.

How the system handles it

Prices and invoices run in EUR. For overnight stay, breakfast and other services you store the appropriate IVA rates, shown on the invoice and in reports. Check the current rates with the Internal Revenue Service (IRS).

You set up the local levies according to your city's rules, per person and night, with the usual exemptions. It appears as its own line on the invoice and can be reported for settlement with the city.