Spanish Hacienda wants real time information on commercial transactions

On October 20 2014, the Spanish Tax Agency issued a communiqué introducing a modernisation strategy for Value Added Tax (VAT) management. The so-called SII (Suministro Inmediato de Información) Instant Information Service will provide Hacienda with real time information on commercial transactions carried out by taxpayers using the system. As a result, returns and rebates will be streamlined and checks can be made more quickly and effectively.

The SII comes into force on 1 January 2017, in order to give companies sufficient time to adapt to the initiative. The initial statements released by the Tax Agency announced that the system will be mandatory for a group of approximately 62,000 taxpayers consisting of large enterprises, corporate VAT groups to and subscribers to the monthly tax rebate regime (‘Redeme’). In total, this group represents 80% of VAT taxpayers’ billing in Spain. Moreover, according to information provided by the Tax Agency, all other taxpayer will be able to join the SII voluntarily.

How will this new model work?

With the SII system, taxpayers must submit details of invoices issued and received to the Tax Agency no later than 4 days after each billing. This means that the “record books” will be managed through the Tax Agency website. Another new feature is that in order to automate the submission of invoicing records, the option of making summarized entries will no longer be possible (even in the case of sales receipts).

This initiative will also enable the Tax Agency to prepare the fiscal data, following a similar scheme to income tax (IRPF). This way, taxpayers can use them to file their VAT returns in a simpler way.


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