How is my tax reporting handled by Xolo?

Last updated: June 15, 2021

When you operate your freelance business using Xolo’s platform, we make sure you get the taxes right and we collect the input for all your Spanish tax reporting obligations seamlessly in the background.

In other words, you don’t have to be an expert in taxes nor do you have to spend your valuable time and energy compiling tax reports yourself — instead, you can leave it in our capable hands.

For example, if you use Xolo’s invoicing tool to issue your sales invoices, our system calculates and applies the correct VAT and IRPF taxes automatically based on your input in regards to the clients and the specific project terms.

Similarly, if you buy something business-related and submit the purchase invoice via your Xolo email or self-service, we process the invoice and automatically detect whether the vendor has included the correct taxes on the invoice, and then record them accordingly on your account.

When the tax reporting period (quarter/year) is over, we take into account all your recorded business transactions (both revenues and expenses) in addition to past tax reports, and determine which tax reports are applicable to you at the time. We then compile the required tax reports ourselves and submit them on your behalf when they’re due.  

Your job is to provide sufficient input (sales invoices, expense docs, further details) for us in a timely manner, and make sure your bank account has sufficient funds to cover the tax payments when they come due.

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