The recent approval of Royal Decree 596/2016 will result in a new system, defined by the tax authorities as a new system for record-keeping in relation to VAT books through the Spanish Tax Authorities web portal. Such system, known as “Immediate Information Delivery” (or under its Spanish acronym “SII”) would basically involve the delivery through electronic means and practically in real time of all the data relating to invoices issues or received for VAT purposes. The SII system would enter into force as from 1st of July 2017.
Which taxpayers would fall within the SII provisions?
As a general rule, the SII system would be mandatory for the following taxpayers:
- Taxpayers included in the register for monthly VAT refunds.
- Companies the turnover of which during the previous year was in excess of 6,010,121.04 euro.
- Taxpayers included in a VAT grouping.
Other taxpayers may opt for the system through the corresponding tax return (form 036). In such cases, such taxpayer will be automatically required to file their corresponding VAT returns on a monthly basis.
The option should be exercised during the month of November, prior to the year for which SII is being sought. However, for 2017, such option may be exercised during the month of June.
How does the SII system function?
Taxpayers within the SII provisions will be required to electronically deliver to the Tax Authorities the information relating to the billing records contained in the following books:
- Book recording all invoices issued
- Book recording all invoices received
- Book recording capital assets
- Book recording specific intra-community transactions
These records will be delivered to the Tax Authorities through its web portal, on the basis of XML messaging.
As a general rule, the relevant information should be uploaded within four calendar days as from the emission of the corresponding invoice or as from the recording in the books of the corresponding invoice received. The information should be delivered before the day 16 of the month following that of accrual in the case of invoices issues and before the day 16 of the month following the tax period where the transactions will be included in the case of invoices received.
Moreover any amendment to information already supplied to the Tax Authorities should be uploaded before the day 16 of the month following the tax period during which such amendments should take effect. Additionally, information relating to capital asset records should be delivered within the filing period corresponding to the last tax period.
Two additional comments should be noted:
- Calendar days for these purposes will exclude Saturdays, Sundays and national Bank Holidays.
- During the first six months of its entry into force, the time-limits will be slightly longer to facilitate the adaptation to this new system. Thus, the time-limit o four calendar days will be extended to eight calendar days during the period from 1st July until 31st December 2017.
Relief from certain formal obligations: Taxpayers within the SII provisions will be exempted from filing the following tax returns:
- Declaration of transactions with third parties, Form 347
- Declaration relating to the contents of VAT records for taxpayers included in the register for monthly VAT refunds, Form 340
- VAT yearly summary, Form 390
New filing deadlines for monthly VAT returns: Taxpayers within the SII provisions will benefit from a longer filing deadline for their monthly VAT returns, since such time-limit will be extended until the 30 calendar days of the following month.
A specific penalty regime is provided for taxpayers who do not fulfil their SII obligations in a timely manner. Such penalty will be to 0.5% over the amount of the corresponding invoice, with a minimum termly amount of 300 euro and a maximum of 6,000 euros.