Billing information: What should an invoice contain as a psychologist?

The era of electronic invoicing is lurking, even in the field of psychology. Considering that since 2015 the Public Administration has only accepted this invoice format, we can anticipate that paper invoices could soon be forgotten. However, before psychology professionals start issuing electronic invoices on a regular basis, it is crucial that they become familiar with the legal requirements that an electronic invoice must meet in order to have the same validity as a paper invoice.

The world of billing can be intimidating, especially if you don't have experience in this field. Billing is a necessity for any professional offering a service, including psychologists. The question may arise: What elements should an invoice include? How do I generate it efficiently without investing too much time?

Many professionals find themselves spending long hours manually generating invoices, a task that not only consumes time, but can be prone to errors. This becomes even more discouraging when you think about the number of sessions you can have in a month. In addition to this, there is a lack of guidance or training on how to make invoices, which can lead to doubts and insecurities.

At eHolo, we understand these concerns and have designed our platform to make billing as easy and efficient as possible. In this article, we'll guide you through the essential components of an invoice and how our platform can help you manage this aspect of your practice efficiently and securely.

What should an electronic invoice contain for a psychologist?

Essentially, the requirements for an electronic invoice are identical to those for a printed invoice. These are detailed in article 6 of the billing regulations, Royal Decree 1496/2003, and are nine crucial aspects:

1. Invoice number and, if applicable, the series
2. Date of issue
3. Full name, business name or company name of both the sender (the psychologist) and the receiver (the patient).
4. Tax Identification Number (NIF) of both parties.
5. Sender and receiver addresses.
6. Detailed description of the services provided to determine the tax base.
7. Unit cost of services, excluding taxes.
8. Type of tax applied and corresponding amount.
9. Date on which the services were performed, if different from the date the invoice was issued.

Therefore, from now on, all the billing explanations we make, in addition to these requirements that they share with printed invoices, will require that both the sending psychologist and the receiving client:

1. They have software that allows the validation of the invoice (eholo).
2. Digitally store received invoices (eholo).

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1. Invoice number and, if applicable, series.

The series of an invoice is a set of alphanumeric characters used to organize and classify the invoices for your office.

For example, a psychology clinic that offers both individual and group therapy services may choose to use the “I” series for individual therapy bills and “G” for group therapy bills. In this way, the I-001 bill would refer to the first individual therapy bill and the G-001 to the first group therapy bill.

It is important to note that within each series, the invoice numbers they must be correlative, that is, they must follow a sequential order without jumps. This requirement is mandatory and non-compliance may result in penalties.

In the case of electronic invoicing, the invoice series and number are usually generated automatically, making it easier to meet these requirements.

2. Date of issue.

The date an invoice is simply the date the invoice is issued or created. This data is relevant for several reasons:

1. It provides a temporary record of when the bill was issued. This is useful both for the service provider, in this case the psychologist, and for the client, to keep a record of when the transaction took place.
2. In many countries, the date of issue of the invoice determines the tax period in which income must be reported. For example, if an invoice is issued on December 29, 2023, that bill must be included in the tax return for 2023, even if payment is not received until 2024.
3. Finally, the date of issue may be relevant to payment terms. For example, if an invoice has payment terms of 30 days, the date of issue is the day from which those 30 days are counted.

In short, the date of issue is a key component of any invoice, both for registration and tax purposes.

3. Full name, company name or company name of both the sender (the psychologist) and the receiver (the client).

This point refers to the complete and official identification information of the two parties involved in the transaction. On an invoice, both the issuer (the person or entity that provides the service, in this case the psychologist or the psychological consultation) and the receiver (the person or entity that receives the service, that is, the client or patient) must be clearly identified.

The “full name” refers to the first and last names of a natural person. For example, a psychologist who works as a freelancer and bills in your name.

The “corporate name” or “company name” is used when the issuer or receiver is an entity or company. For example, if a psychology center were to bill for the services provided, its official company name (the “corporate name”) would be used.

It's crucial that this information is accurate and complete on invoices, as it's a legal requirement and helps avoid confusion or misunderstanding in the future.

4. Tax Identification Number (NIF) of both parties.

The Tax Identification Number (NIF) is a unique number that is assigned to each person or company for tax identification. This number is issued by the State Tax Administration Agency (AEAT) in Spain and is essential for any type of formal economic transaction, including invoicing.

On an invoice, both the NIF of the issuer (the psychologist or the psychology office) and that of the receiver (the client or patient) must be clearly indicated. This is necessary to ensure the traceability of transactions and to comply with the tax obligations of both parties.

In the case of psychologists who work as freelancers, the NIF would be your national identification number plus a control letter. If the psychologist works through a company or consultation, the company's CIF (Tax Identification Code) would be used, which is the NIF assigned to legal entities.

It is important to mention that, in order to bill for psychological services, the patient's NIF must also be included in the bill. However, in some circumstances, for reasons of data protection and confidentiality, it may be necessary to anonymize this information or replace it with another identifier agreed upon by both parties.

Either way, it's essential to keep a clear and secure record of these transactions to comply with tax and legal obligations.

5. Sender and receiver addresses.

This point is quite simple and essential on any bill. The full address of both the sender (the psychologist who provides the service) and the receiver (the customer who receives the service) must be present on the bill. It's a way to certify the parties involved in the transaction.

6. Detailed description of the services provided to determine the tax base.

At this point, it's important to be explicit and detailed about the services that have been provided to the customer. As a psychologist, you may have provided a variety of services such as an individual consultation, group therapy, psychological evaluation, etc. Each of these services must be detailed on the bill with its respective description.

This detailed description helps determine the taxable base of the tax. The tax base is the total value of sales of services on which taxes are calculated. This is the amount before the addition of taxes and after the deduction of discounts, if any.

So, for example, if you provided three therapy sessions to a client at a cost of 50 euros each, the tax base would be 150 euros. Depending on the tax regulations in your country or region, you would then apply the corresponding tax on this amount to calculate the total amount owed by the customer.

Keep in mind that in the specific case of psychologists, if you are exempt from VAT, the tax base would also be the final total to be collected, since no taxes would be added to it.

Providing a detailed description of the services is not only a legal obligation, but it also helps to maintain transparency with your customers and allows them to understand why they are being charged a certain amount.

7. Unit cost of services, excluding taxes.

The unit cost of services refers to the price charged for each individual service you offer, regardless of taxes. In the context of psychology, each session or consultation can be considered a “unitary service”.

For example, if you offer a therapy session for 60 euros, that would be your unit cost. This amount must be listed separately for each service on the invoice, before any tax is applied.

It is important to note that this unit price must be excluded from taxes. This is relevant in invoices because it allows full transparency about the cost of the service itself and the tax that is being applied separately.

In our case, as psychologists, in many regions they do not need to apply VAT to their services, so the unit cost will be the final cost that the customer must pay. Even so, it is important that the invoice shows the price per session so that the customer can understand and verify the total amount of the invoice.

Clarity at this point helps to avoid misunderstandings and to ensure that the customer is fully informed about what they are paying for.

8. Type of tax applied and corresponding amount.

This part of the invoice indicates the type of tax that is being applied to the service and the exact amount of this tax. In many cases, this will be Value Added Tax (VAT), although there are exceptions.

The type of tax applied refers to the rate of tax that is charged. For example, in many countries, the standard VAT can be 21%. However, in the case of psychologists in certain places, their services are exempt from VAT.

The amount of tax is the specific amount of money that is charged as a tax. Normally, it is calculated by applying the tax rate to the unit cost of the service (excluding taxes). For example, if your service costs 100 euros and the VAT is 21%, the amount of the tax would be 21 euros.

It is very important to mention that in the invoice you must specify if the service is exempt from VAT. In this case, the invoice must reflect that the tax rate applied is 0% and, therefore, the amount of the tax will also be 0. In this way, even if VAT is not being charged, transparency and legality will be maintained in the invoice.

9. Date on which the services were performed, if different from the date the invoice was issued.

This aspect of the invoice refers to when the services for which you are being billed were performed. In an ideal scenario, the date the services were performed and the date of issue of the invoice would match, but there are situations in which this does not happen.

For example, a psychologist may have provided several therapy sessions over the course of a month and decide to issue a single bill at the end of the month for all of those sessions. In this case, the date of issue of the bill would be the last day of the month, but the dates of performing the services would be the specific days on which the therapy sessions took place.

It is crucial to include the date the services were performed in the invoice, as it provides transparency and allows clearer monitoring for both the psychologist and the client. In addition, in some cases, it may have fiscal and legal implications, since services are considered rendered and, therefore, taxable on the date they are performed, not when they are invoiced.

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In conclusion, billing is an essential but often complex aspect of managing a psychology practice. Knowing what elements to include in an invoice and how to organize them in accordance with tax regulations can be a challenge, especially for professionals who are just starting their practice.

In addition, manually generating invoices can result in an inefficient use of time, valuable resource that could be used to care for patients. This is where automation tools, such as eHolo, play a transformative role.

eHolo simplifies and streamlines the billing process, ensuring compliance with legal and fiscal requirements, and freeing professionals from the administrative burden of this task. Thus, eHolo becomes a strategic ally for any psychologist, allowing them to optimize time, increase productivity and maintain focus on what truly matters: the care and attention of patients.

Remember that, although billing may seem like a tedious administrative task, it's a fundamental part of your business. With the right tools, you can transform this task into a simple and efficient process, which will allow you to have a clear vision of your economic activity and will bring professionalism and transparency to your services.

Welcome to the digital era of billing in your eHolo practice!

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