IRPF Withholding on Dolibarr Invoices: A Practical Guide
How to apply and manage IRPF withholding on your Dolibarr invoices: 15% and 7% rates, calculation on the base amount, setup and day-to-day accounting.
IRPF Withholding on Dolibarr Invoices: A Practical Guide
IRPF withholding is a payment on account of your income tax: your client deducts a percentage from the invoice, pays it to Hacienda on your behalf and you collect the rest. In Dolibarr you apply it by marking the company or the third party as subject to IRPF and adding the negative rates to the tax dictionaries; after that, the withholding is reflected when you create invoice and quotation lines. Here we look at when it applies, how it is calculated and how to manage it.
What IRPF withholding is and when it applies
IRPF withholding is a percentage your client deducts from your invoice and pays to Hacienda as a payment on account of your personal income tax (IRPF). It is not an extra tax and not a commercial discount: it is your own money, paid to Hacienda in advance.
Who withholds, and from whom
It is applied by companies and professionals when they pay invoices for professional services provided by individuals (personas físicas). If you invoice as a freelancer (autónomo) to a company or another freelancer, your invoice will normally carry withholding; when the payer is a private individual, there is none.
Common rates
The general rate is 15%. New freelancers can use 7% during their year of registration and the two following years, provided they meet the requirements. There are also 19% on the rent of business premises and 2% on agricultural, livestock and forestry activities. Your tax adviser confirms the exact rate.
When it does not apply
Invoices from companies (S.L., S.A.), invoices addressed to private individuals and sales of goods do not carry withholding. It is concentrated on professional services between businesses and freelancers.
How it appears on the invoice
On the invoice, the withholding shows up as a negative line: it is calculated on the base amount and deducted from the total (base + VAT - withholding = total to collect).
With a base of €1,000 and a 15% rate:
- Base amount: €1,000
- VAT 21%: +€210
- IRPF withholding 15%: -€150
- Total to collect: €1,060
At 7%, it would be €70 and the total €1,140.
It is not a commercial discount
The withholding does not reduce your income: the base is still €1,000. The €150 deducted is a payment on account that your client pays to Hacienda for you and that counts when your income tax is settled.
It is calculated on the base, not the total
A common mistake is applying the percentage to the total including VAT: the withholding goes on the base amount. 15% of €1,000 is €150, not €181.50. Note that some invoices with 0% VAT (exempt, for instance) do carry withholding; the base and the rate do not change.
How to manage it in Dolibarr
In Dolibarr, IRPF withholding is set up once —company, dictionaries and third-party record— and then it is reflected on its own on invoices and quotations. Menu names change between versions (this blog covers 14 to 24); if you cannot find an option, look for it by concept.
Company and rate setup
In the company settings you mark the company as subject to IRPF and define the default rate. In the tax dictionaries —the VAT rates section— you add the negative IRPF rates for Spain, such as -15 and -7, so you can select them when invoicing.
Third-party record and invoice lines
In the third-party record you state that the third party is subject to IRPF and its rate. With that, when you create the lines of an invoice or a quotation, Dolibarr shows the withholding in the breakdown and adjusts the total to collect.
Customer and supplier invoices
On customer invoices with withholding, the IRPF appears as a negative amount in the breakdown. On supplier invoices the roles reverse: if you pay a professional, you apply the withholding on payment, and Dolibarr can reflect it too.
What happens when you get paid, and how it is recorded
When your invoice carries withholding, you collect the net amount: the total minus what was withheld. The withholding is not paid by you: your client pays it to Hacienda on your behalf, files it on form 111 (quarterly) and summarises it on form 190 (annual). It appears as a payment on account in your income tax return.
The Hacienda accounts: 473 and 4751
In accounting, the withholding does not reduce income or expenses: it is recorded in Hacienda accounts. If it is withheld from you, it goes to 473 (Hacienda, withholdings and payments on account); if you apply it on a supplier invoice, it goes to 4751. In plain terms: a balance with Hacienda, not lower income.
Frequently asked questions
Is it 7% or 15%?
15% is the general rate; 7% is the reduced rate for new freelancers during their first year and the two following ones, provided the requirements are met. Confirm with your tax adviser.
If I invoice through a company (S.L.), do my invoices carry withholding?
No. Invoices from companies (S.L., S.A.) do not carry withholding; it applies to individuals (freelancers) for professional services. If your client is an S.L., it will normally withhold from you.
What if the client does not apply the withholding?
If the payer is not required to withhold (a private individual, for example), you declare the full income. If you believe it should have been applied, raise it with your tax adviser: withholding is the payer's duty.
Do VAT and IRPF withholding add up or subtract?
They combine: VAT is added to the base and the withholding is deducted from the total. VAT is paid to Hacienda; the withholding is a payment on account of your IRPF. On one invoice you can have 21% VAT and 15% IRPF.
Does anything change with VeriFactu?
It is not mandatory yet: under the current calendar (RDL 15/2025) it starts on 01/01/2027 for companies and on 01/07/2027 for the rest. When it applies to you, invoices with withholding are recorded like any other.
In summary
IRPF withholding is a payment on account of your income tax that your client pays for you, and Dolibarr gives you the pieces to manage it: company, dictionaries and third-party records. If you would like support for the day to day:
- You can count on EasySoft Tech S.L.'s Spanish accounting for Dolibarr.
- Before filing your returns, run through the accounting close checklist.
- And when it is time to pass everything to your adviser: Export Dolibarr accounting to your accounting firm.
- Remember to confirm the applicable rate with your tax adviser.