SII – Immediate Information Sharing system will be mandatory as of July 2017 in Spain involving more than 62,000 companies. Underneath are eight important question and answered regarding the implementation and use of SII.
- What is the Immediate Supply of Information (SII)?
It is about changing the current VAT management system which has been in place for 30 years, introducing a new bookkeeping system for Value Added Tax on the AEAT online system, by providing all billing records in almost real time.
Hence, the new Immediate Supply of Information accelerates the gap between recording or booking invoices and the actual realisation of the underlying economic transaction.
- Why is the Immediate Supply of Information (SII) being introduced?
Because the current technological situation allows its implementation at this time, to improve taxpayer assistance and taxation controls.
- When will the new SII come into effect?
The mandatory application phase for this system begins on 1 July 2017 for taxpayers opting in obligatorily or voluntarily. A voluntary opt-in phase began on 2 January 2017 for companies participating in a pilot trial.
The taxpayers applying the SII from 1 July 2017 shall be obliged to send invoicing records for the first six months of 2017 within the period from 1 July to 31 December 2017.
- Does the Immediate Supply of Information (SII) affect all VAT taxpayers?
The new SII will be mandatory for all taxpayers required to self-assess for VAT on a monthly basis: Registered with REDEME (Monthly VAT Return Registry), Large Businesses (turnover of over €6,010,121.04) and VAT Groups
The new SII can be applied to all other taxpayers who choose to opt in voluntarily.
- Do you have to send the invoices to the Tax Agency?
What has to be sent are the invoice record fields specified in the corresponding Ministerial Order, concerning information referred to in Royal Decree 596/2016 of 2 December.
- When do you have to send invoicing records to the Tax Agency?A) Issued Invoices
Within four calendar days of invoice issuance, except in the case of invoices issued by the recipient or by a third party, in which case the period is eight calendar days.
In any event, the supply of goods or services must be carried out before the 16th of the month in which the Tax on the transaction that is to be recorded accrues. This deadline coincides with the end of the term to issue an invoice in accordance with article 11 of the Royal Decree 1619/2012, thus if a business issues the invoice on the 15th day of the month following the accrual, that same day they should send the invoicing records through SII.
Example: business A provides a service to another business on 2 August 2017, issuing the corresponding invoice on the same day. The term to send the record of this invoice through SII finishes on 14 August.
Example: business A provides a service to another business on 2 August 2017, issuing the corresponding invoice on 13 September 2017 (the issuance term finishes on 15 September). The term to send the record of this invoice through SII finishes on 15 September.B) Received Invoices
Within four calendar days of the accounting of the invoiceand, in any event, before the 16th of the month following the settlement period in which the corresponding transactions are included.
Example: a business that receives an invoice on 9 August 2017 decides to enter and deduct the amount borne in Form 303 of August, and proceeds with accounting the invoice on 13 September. The term to send the record of this invoice through SII finishes on 15 September.
In the case of imports, the four calendar days apply from when the document stating the customs liability is recorded for accounting purposes, and in any event, before the 16th of the month following the settlement period in which the corresponding transactions are included.
C) Certain Intra-Community Transactions
Within the four calendar days of the date of dispatch or transport or, if applicable, from the date of receipt of the goods in question.
D) Information on Investment Assets
Within the filing period of the last settlement of the year (up to 30 January).
TERMS DURING THE SECOND HALF OF 2017
During the second half of 2017 the four-day term is extended to eight calendar days.
The calculation of the four and eight calendar day terms referred to above exclude Saturdays, Sundays and national holidays.
- Do you have to send the same information that is actually included in the VAT Record Books?
No, it’s about sending to the Tax Agency’s E-Office certain information that is currently in: VAT Record Books, Invoices, plus Forms 340 and 347
- Does a taxpayer who has opted into SII from July 2017 have to file form 347 for 2017?
The SNI SII SAP add-on Solution
The SNI SII SAP add-on solution runs over SAP ECC as an end-to-end solution.The solution is fully integrated in SAP without an external interface or use of external software and SAP release and upgrade independent. It is implemented without core modification and ABAP is the programming language.
Installation done simply by external transport file. It contains user-friendly screens, own customised tables and own transaction codes and menus. Credentials – all listed companies with strict IT policies – are available.
- SNI has a scalable SAP solution for companies in countries that implement SAF-T
- Introducing SNI: ranked #12 on the Technology Fast 500™ Europe, Middle East & Africa (EMEA).
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