1. VAT is not your money
VAT (normally 21%) is charged to your client, but you must later pay it to the Tax Agency (modelo 303). It is not part of your income.

2. IRPF is an advance tax payment
The withholding tax (usually arround 19%) works as follows: it will be paid at the end of the quarter though Form 130.

3. Real example: invoice of €121 (corrected scenario WITHOUT IRPF on invoice)
Data:
Taxable base: €100
VAT (21%): +€21
IRPF: NOT applied on the invoice
Invoice result:
Total paid by client: €121
Important clarification

In many cases (especially when working with individuals or non-obligated clients), you issue invoices without IRPF withholding.

This means:

The client pays you the full amount (€121)
No IRPF is deducted at source
What happens with IRPF then?

This is where many people get confused:

You will have to pay the IRPF yourself later through:

Form 130 (quarterly income tax payment)
Real calculation
3.1. Money received from client:
€121
3. 2. VAT (not your income):
€21 → must be paid to the Tax Office (form 303)
Real income:
€100
IRPF payment (via form 130)

Let’s assume a standard situation:

Estimated IRPF: 20%
€100 x 20% = €20 to be paid quarterly
Final result
Client pays: €121
VAT to Tax Office: €21
IRPF to Tax Office (form 130): €20
Net income before expenses: €80
Key difference vs invoice with IRPF
With IRPF on invoice → you receive less money, but tax is partially prepaid
Without IRPF on invoice → you receive more money, but must pay later
Professional conclusion

Both systems lead to a similar final tax burden, but:

Without IRPF → requires discipline (you must save money for taxes)
With IRPF → cash flow is lower, but safer

If you want, I can review your specific case and tell you:

Whether you should apply IRPF on invoices
How much you should be saving every month to avoid surprises

4. What you really keep (realistic view)

Let’s include real-life costs:

Assumptions:
Social security (autónomo fee): approx. €230/month
Real IRPF: around 15%–30% depending on income

Professional recommendation

Each situation varies depending on:

• Your income level
• Deductible expenses
• Type of activity

For this reason, it is highly recommended to calculate your real net income based on your personal situation.

If you want, I can calculate exactly how much you would keep monthly based on your real income and expenses.