If your activity is subject to withholding, the company or professional you invoice pays you less than the total: they keep part of it as IRPF withholding and pay it to the tax authority on your behalf. IRPF is the Spanish personal income tax. The invoice total and the money you receive no longer match.
In PhotoHeart you can apply that withholding to the invoices that need it and, from version 2.48.0, to advances too. You choose which ones; PhotoHeart does the calculation and tells you how much you will receive.
Turned on once, never applied on its own
The withholding is off by default. To use it, go to Settings → Billing, turn on Allow IRPF withholding in the Tax and Payment card, and save the suggested IRPF rate you usually apply.
Turning it on does not change any invoice, either the ones already issued or the new ones. It only makes the control appear when you create an invoice. While it is off, the form works as before.
You decide on each invoice
When you create an invoice you will see the Apply IRPF withholding switch, turned off. If you turn it on, your suggested rate is proposed, and you can change it for that document only, without touching your settings.
PhotoHeart does not decide for you whether an invoice must carry withholding or which rate applies to you. That depends on who you invoice and on your tax situation. If you have doubts, check with your advisor.
Calculated on the taxable base, not on VAT
The withholding is calculated on the taxable base and deducted from the total including VAT. The VAT does not change.
An example with an invoice of €1,000 with VAT included at 21% and a 15% withholding:
| Item | Amount |
|---|---|
| Taxable base | €826.45 |
| VAT (21%) | €173.55 |
| Total | €1,000.00 |
| IRPF withholding (15%) | −€123.97 |
| Net amount due | €876.03 |
The invoice total remains €1,000. The net amount due is what your client transfers to you. Both amounts appear separately while you prepare the invoice and in the PDF your client receives.
The rate and the amount are saved in each invoice. If you later change your suggested rate or turn the withholding off, the issued invoices do not change.
Advances too
Withholding is applied to each payment, so you can also apply it when you record an advance issued as an invoice. It works the same way: the switch starts off and you decide.
If an advance carries withholding, the following advances and the final invoice for that session must carry it too: they appear with withholding turned on, and it cannot be removed. The rate can still be edited on each document.
The final invoice withholds only on the pending part, not on what you already collected through the advances. While you prepare it, you will also see the Total withheld for this job: the sum of what was withheld on the advances and on the invoice itself. It is an informational figure that does not appear on the PDF.
A practical detail: an advance with withholding is issued with today's date.
What does not change
- Tickets (simplified invoices) and quotes do not accept withholding.
- An advance with withholding can only be deducted from a full invoice, not from a ticket.
- If you correct an ordinary invoice that carried withholding, the corrective invoice keeps it at the same rate. You do not need to enter it again.
- If a session already has an advance with withholding, you need to keep withholding turned on in your settings to issue the rest of its documents.
- PhotoHeart does not submit tax forms and does not replace the advice of your advisor.
How to start
Go to Settings → Billing, turn on Allow IRPF withholding and save your rate. The next time you create an invoice or record an advance with an invoice, the switch will be available.
The PhotoHeart Team