How much to set aside from each invoice
The day an invoice is paid your balance goes up and so does your mood. The problem is that part of that money belongs to the tax office and it leaves at the quarter. Setting it aside the same day is the only way 20 April stops hurting. Let us see exactly how much.
The two parts that are not yours
The first is IVA. If you invoice €1,000 plus €210 of IVA, you collected €1,210 but earned €1,000. The €210 belong to the tax office and you settle them on modelo 303.
The second is IRPF. On the profit of your activity you pay a 20% advance every quarter through modelo 130, or it is withheld on the invoice itself if the client is a company.
IVA is set aside in full. For IRPF you set aside whatever has not already been withheld.
The example: a €1,000 invoice to a company
Taxable base: €1,000. IVA at 21%: €210. IRPF withholding at 15%: €150. Invoice total: 1,000 + 210 − 150 = €1,060. That is what lands in your account.
Set aside the IVA: €210. It is yours on deposit until the 303.
Set aside the IRPF gap: 20% of €1,000 is €200. The client has already paid €150 on your behalf. €50 are missing.
Total to set aside: 210 + 50 = €260. What is really yours: 1,060 − 260 = €800. 80% of the base. That is the figure to keep in mind.
If you invoice individuals, you take the whole hit
An individual does not withhold. The same €1,000 invoice collects €1,210. You set aside €210 of IVA and €200 of IRPF: €410. You keep €800.
The amount you keep is the same, €800. What changes is that €1,210 arrive instead of €1,060, and the temptation to spend them is greater.
Quick rules in percentages
- With a 15% withholding: set aside 21% of the base for IVA and 5% for IRPF. Of what you collect, 24.5%.
- With a 7% withholding (new professionals): set aside 21% for IVA and 13% for IRPF. Of what you collect, 29.8%.
- No withholding: set aside 21% for IVA and 20% for IRPF. Of what you collect, 33.9%.
- If your activity is IVA exempt (healthcare, regulated teaching): only IRPF. With withholding, 5% of the base. Without, 20%.
Why the 20% IRPF is an approximation
The 130 computes 20% on profit, not on turnover. If you have expenses, the real 20% on each invoice is lower. With 30% of expenses, the payment on account on €1,000 invoiced is 20% × 700 = €140, not €200.
Setting aside 20% of the base is a conservative rule that almost always leaves a surplus. That surplus comes back at the annual return or stays as a buffer. What never pays is setting aside too little.
The RETA contribution counts too, as a deductible expense that lowers profit. If you pay €300 a month, that is €900 less profit per quarter and €180 less on the 130.
How to set it aside without thinking
Open a second account, even at the same bank, and transfer the reserve the day you get paid. Two transfers: one with the IVA, one with the IRPF. Whatever is left in the main account is what you can spend.
Fider does this sum for you when you record each paid invoice: it tells you how much of that payment goes to the tax office and how much is yours, and accumulates it in the quarter's 303 and 130 drafts.
Frequently asked questions
Do I set aside the RETA contribution too?
Yes, but it is a fixed monthly cost, not a percentage of each invoice. Treat it like any other bill: direct debit and counted in your monthly expenses.
What if one quarter the 303 comes out as a credit?
Then the IVA you set aside stays in your reserve account and covers the next quarter. Do not spend it: a credit only postpones the payment.
Can I set aside less if I have a lot of expenses?
Yes, but do the sums first. Estimate your real margin, apply 20% to it and set that aside. If in doubt, set aside on the base and adjust at year end.