Real time VAT compliance system to be mandatory in Spain in July 2017
More than 62,000 Spanish businesses will be required to adapt to the new mandatory Immediate Information Sharing system (SII) as of July 2017. Rollout of this VAT compliance model, which proposes electronic bookkeeping of Value Added Tax (VAT) ledgers, was initially scheduled for next January. However, the absence of Government delayed implementation for another year.
The main new feature of electronic VAT bookkeeping is that the tax will now be declared to the Tax Agency (AEAT) in almost real-time. In fact, the legislation requires companies to present and declare the details of their invoices issued and received within a period which should not exceed 4 calendar days. This period will only be extended when the invoices have been issued by the recipient or by an accredited third-party, such as EDICOM. In these cases, the deadline will be 8 calendar days.
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.
As a new feature, during the first six months of SII operation, taxpayers will have an extraordinary term for submitting their information, which will be eight days. When this period expires, the deadline for submitting the information to the AEAT will be 4 days.
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.
In 2017, the AEAT will resume trials of the SII pilot project, with EDICOM playing a proactive role as international expert in developing data integration and e-invoicing systems. So much so, that we have already been working to adapt our solutions to the new requirements affecting electronic VAT management, to ensure secure connectivity with the AEAT electronic office.
The EDICOM SII Solution is integrated with the company ERP or internal management system to automate sending of data to the Tax Agency. This information is forwarded in the set XML format to the SII via web services through the EDICOM Public Administrations HUB. When the AEAT Agency receives data, it validates and returns one of these states: full acceptance, partial acceptance or total rejection. These responses, which may also be integrated in the ERP, are stored along with the original books sent to the AEAT in the EDICOMLta long-term safekeeping service, which is designed to provide responses to the particular features of IIS, with a personalized viewer that lets you retrieve a replica of the VAT books kept in the la AEAT electronic office.