Both EDICOM and Pagero mentioned that the Spanish Government passed a series of measures aimed at detecting and preventing tax fraud, as well as modernising Spanish VAT reporting standards; estimated to contribute with 2 billion euros in income for the Spanish Government.

Immediate Information Submission

One of the measures taken is the introduction of a new VAT reporting system “Suministro Inmediato de Información” (SII). SII will give Spanish Tax Authorities close to real-time information of company transactions, which will lead to increased control of tax collection.

A total of 62,000 companies are estimated to be concerned, representing 80% of the nation’s invoicing volume.
SII will enter into force the 1st of July 2017, and will require that companies concerned submit their information electronically to the Spanish Tax Authorities regarding all customer and supplier invoices within 4 days of each invoice’s issuing date or book keeping date. During the first 6 months, companies will have 4 more days (8 days in total) to submit the invoice information, to allow for a smooth transition of current processes to the new routines.

Electronic invoice handling will be key in adapting to the new rules, since electronic invoicing with suppliers will allow for instant and correct invoice information directly into the company’s financial system.

Simplification of Tax Compliance

Edicom mentioned that another of the big changes due to come with SII will be the simplification of tax compliance, as already occurred with e-invoicing. With this system, companies are limited to filing tax self-assessments. And models 347, 340 and 390, previously used to declare information, will no longer be necessary.

Transition efforts

Businesses with turnover of over 6,010,121.04 euros classified as Large Companies, those listed in the monthly return regime (REDEME) and those belonging to VAT groups, will have just over 6 months to adjust to this new model, which poses a challenge in the technological adaptation of their internal management systems and connectivity with the AEAT electronic office. In this sense, it is important to start the migration process as soon as possible, as failure to comply with the obligation by the deadline set may incur penalties.

Read the post by Edicom (and download their whitepaper)
Read the post by Pagero