Spain has introduced important amendments to the technical specifications of the Spanish Immediate Supply of Information System (known as the SII) which will have effect from 1st October 2019.
The SII, which launched on 1st July 2017, requires taxpayers to electronically report their invoice data in XML file format in near real-time through the Spanish tax authorities’ e-platform. It generally affects businesses whose turnover in the previous year was at least EUR 6,010,121.04 or those on the monthly refund scheme Redeme.
The revised SII requirements provide for increased data checks and validations on behalf of the tax authorities. The measures predominantly involve a tightening of the SII reporting specifications and are geared towards improving the quality of the data. The aim is that both companies and tax authorities alike will spend less time on miscellaneous queries, such as those related to forgotten error corrections.
Important changes include, amongst others, the following:
- The single administrative document (SAD) number must be consistent with the invoice number of the company issuing the invoice and must be in the correct format;
- All net amount and VAT amount fields must match up with the VAT rate recorded in the SII. These amounts will be checked by the tax authorities and only discrepancies of up to EUR 10 are permitted otherwise the submission will be rejected;
- The deductible VAT amount field may not be higher than the VAT amount recorded in that invoice;
- If there is data recorded in the VAT amount and net amount fields, it is also compulsory to record the VAT rate; and
- The status ‘Approved with Errors’ will no longer be available, and all such transactions will be ‘Rejected’ instead. The tax authorities have indicated that they will be introducing further error codes in the future.
As of July 1, a testing environment is available.
Businesses are strongly encouraged to start testing files now so as to make any necessary changes to their systems in time for the go live date. Once the new platform is operable, rejected transactions will be treated as if they are missing. Therefore, late filing penalties may apply.
Contact our VAT experts now and find out how this change could affect your business.