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IVAGlossary

IVA-exempt operations: when no IVA is charged

IVA-exempt operations (operaciones exentas de IVA) are activities that by law carry no IVA: you don't charge it to your client. Healthcare, regulated education or certain financial services are usually exempt. In exchange, you normally can't deduct the IVA on your related expenses.

Operaciones exentas de IVA (IVA-exempt operations) are activities the law leaves outside IVA: you don't add IVA to your invoices because your activity is exempt. It's not the same as 0% IVA — it's that IVA doesn't apply.

Healthcare, regulated education, and some financial and insurance services are usually exempt. The important detail: if your activity is exempt, you normally can't deduct the IVA you pay on related expenses, because you don't charge it anywhere.

How Cece sees it

Being IVA-exempt simplifies your invoices, but there's a flip side: the IVA on your expenses stops being recoverable. If your activity mixes exempt and non-exempt services, it's worth being very clear with your gestoría.

Frequently asked questions

If I'm IVA-exempt, can I deduct the IVA on my purchases?

As a general rule, no: if your activity is IVA-exempt, you don't charge IVA and can't deduct the IVA on related expenses either. For mixed activities (part exempt, part not) a prorrata rule applies; confirm it with an adviser.

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