By Clara Team
VAT and income-tax withholding on psychologists' invoices in Spain
On a psychologist's invoice in Spain, VAT and income-tax withholding answer different questions. VAT depends mainly on the nature of the service. Withholding depends, among other factors, on who receives the invoice and whether that customer is required to withhold.
A healthcare session, a company workshop, and an expert report can therefore need different treatment. This guide provides general criteria. A tax adviser should confirm the treatment of your particular activities.
When a session may be VAT-exempt
Article 20.One.3 of Spanish VAT Law 37/1992 exempts healthcare supplied to individuals by medical or healthcare professionals. The provision includes psychologists and links healthcare to diagnosis, prevention, and treatment.
Review three questions:
- Is the service supplied to an individual?
- Does it have a diagnostic, preventive, or treatment purpose?
- Is it supplied by a professional with the appropriate qualification and authorisation?
Where the exemption applies, no VAT amount is added and the invoice states the legal basis. See the psychologist invoice example.
Services to assess separately
Not every activity carried out by a psychologist is necessarily exempt healthcare. Training, workshops, coaching, organisational consulting, recruitment, expert reports, courses, supervision, and services without a healthcare purpose should be assessed separately.
Common wording where the exemption is applicable is:
Transaction exempt from VAT under Article 20.One.3 of Law 37/1992.
When income-tax withholding appears
Withholding is a payment on account of the professional's income tax. An invoice to a private individual normally has no withholding. A company, professional, or other withholding agent may withhold from professional fees.
The Spanish Tax Agency publishes the applicable rates. The general professional rate is 15%. A 7% rate may apply in the first year of activity and the following two years when the conditions are met.
Simple examples
Healthcare session for a private individual
- Amount: €70
- VAT: exempt, if the conditions are met
- Withholding: none
- Total: €70
€500 professional service for a company
- Amount: €500
- VAT: depends on the real nature of the service
- 15% withholding: −€75
- Total: amount plus any VAT, less withholding
VAT and withholding are independent calculations. An invoice may contain both, one, or neither.
Common mistakes
- Treating every activity as exempt because a psychologist supplies it.
- Adding withholding to invoices for private individuals.
- Omitting the legal basis for an exemption.
- Using a description too vague to identify the transaction.
- Including unnecessary clinical information.
- Applying one tax configuration to materially different services.
Create separate service items where activities receive different treatment. Clara's invoicing for psychologists keeps rates, fiscal details, and sessions in one workflow. The VeriFactu guide explains the separate record-traceability requirements.
Frequently asked questions
Are psychology sessions subject to VAT in Spain?
Healthcare for individuals may be exempt when it involves diagnosis, prevention, or treatment and the legal requirements are met. Other services may be taxable.
Does an invoice to a private patient include withholding?
Normally not. Withholding may apply when the customer is a company or another entity required to withhold.
What withholding rate applies?
The general professional rate is 15%. A 7% rate may apply at the beginning of the activity when the requirements are met.
Official sources
- Spanish VAT Law 37/1992, Article 20.One.3.
- Withholding rates, Spanish Tax Agency.
- Required invoice contents, Spanish Tax Agency.
Information reviewed on September 5, 2026.