Minutes of the session

MINUTES OF THE PLENARY SESSION 1/2023

Minutes of the Plenary Meeting of the Small and Medium-sized Enterprises Forum
held on March 13, 2023

Members representing the Tax Agency

Director of the Tax Management Department

Mrs. Rosa Maria Prieto del Rey

Director of the Department of Financial and Tax Inspection

Mr. Javier Hurtado Puerta

Director of the Collection Department

Mrs. Virginia Muñoz Fernández

Director of the Tax Information Technology Department

Mr. Jose Borja Tome

Director of the Planning and Institutional Relations Service

Mr. Ignacio Fraisero Aranguren

Members representing Small and Medium Enterprises

Spanish Confederation of Small and Medium-sized Enterprises (CEPYME)

Director of Economics and Sectoral Policies

D. Francisco Vidal Yuguero

Technical Secretariat of the Forum of Small and Medium Enterprises

Deputy Director General of External Communication

Mrs. Maria Dolores Carreno Beltran

The third plenary session of the Small and Medium Enterprises Forum will be held on March 13, 2023, with the following people attending, and in accordance with the following:

AGENDA

1. Opening of the session.

2. Approval of the minutes of the meeting held on October 17, 2022.

3. Approval, where appropriate, of any changes to the Forum's Operating Rules.

4. Planning and accountability of the Tax Agency.

5. Electronic billing: regulatory projects.

6. New AEAT Auction Portal.

7. Next call: dates and topics to be discussed.

8. Other considerations, requests and questions.

1. Session opening

The session was opened by Mr. Ignacio Fraisero Aranguren, Director of the Planning and Institutional Relations Service, who, after welcoming and thanking those attending for their presence at the third session of the Plenary Session of the Small and Medium-sized Enterprises Forum, apologised for the absence of Ms. Soledad Fernández Doctor, Director General of the Tax Agency and President of the Forum, who was prevented from attending the plenary session due to scheduling problems.

The Director of the Planning and Institutional Relations Service then gave the floor to the second point on the agenda.

2. Approval of the minutes of the meeting held on October 17, 2022

Mr. Ignacio Fraisero gives the floor to Ms. Mª Dolores Carreño Beltrán, Deputy Director General of External Communication of the Planning and Institutional Relations Service and Technical Secretary of this Forum, who states that the minutes of the second plenary session were sent to the representatives of small and medium-sized companies prior to this meeting, and that no comments were received; He adds that if there were none at this time, it would be definitively approved. Since no objection was raised, the minutes of the second plenary session held on 17 October 2022 are hereby approved. It also states that the minutes will be published on the Tax Agency's website in the section dedicated to this Forum.

3.  Approval, if applicable, of the modifications to the Forum's Operating Rules

The Director of the Planning and Institutional Relations Service points out that at the previous plenary session it was announced that it would be appropriate to modify the third section of the Rules of Operation of the Forum, establishing an ordinary plenary meeting per year and that, likewise, depending on the issues to be addressed, it could be determined that ordinary or extraordinary sessions of the Plenary of this Forum and the Plenary of the Forum of Federations and Associations of Self-Employed Workers would be held jointly. He added that these amendments had been submitted to the members of the Forum without any comments having been received to date and that, if no comments were made at this time, they would be approved.

Mr. Francisco Vidal Yuguero, representative of CEPYME , points out that his organization has no objection to the approval of these modifications since they understand that they are due to reasons of efficiency, given that many of the issues addressed are of common interest to both groups.

Mr. Ignacio Fraisero then declares the modifications to the third section of the Forum's Operating Rules approved.

4. Planning and accountability of the Tax Agency

The Director of the Planning and Institutional Relations Service informs that in February the general guidelines of the Annual Tax and Customs Control Plan for 2023 were published in the Official State Gazette and that, on the other hand, the Addendum corresponding to the 2023 fiscal year of the Strategic Plan of the Tax Agency had also been approved, which is published on the electronic headquarters. He adds that he will briefly highlight the following issues regarding the latter:

• Work is being done on implementing a new information and assistance model, integrating all existing channels by structuring coordination between face-to-face and telephone assistance services, distributed throughout the national territory, with the Comprehensive Digital Assistance Administrations ( ADI ), thus achieving homogeneity in terms of action protocols and criteria. The aim of the model is to ensure that most services are provided through all channels, facilitating and simplifying access to them so that citizens can decide how they want or need to be served. This model is developed from the following instruments, among others:
  • Definition of a complete service charter to be published on the electronic site, facilitating access to said services. A simplified version will also be included in the Tax Agency's APP.
  • New appointment application that incorporates more understandable language and improves usability.
  • Unification of telephone assistance provided by Tax Agency staff, regardless of their territorial location, through a centrally coordinated service via the ADI .
• Progress will be made in resolving requests for corporate tax refunds from SMEs. This project, to be developed over several years, aims to gradually advance the agreement on refunds that meet certain requirements, so that a significant percentage of the amount requested would be returned closer to the end of the tax filing period.
• Also in relation to corporate tax, the information provided to taxpayers on outstanding items from previous years will be increased, thus making it easier for them to prepare their tax return.
• The current criteria for processing deferrals and installment payments are being reviewed to make granting them more flexible for those who meet certain requirements.

Mr. Francisco Vidal comments that he considers it very interesting to have a catalogue of services and suggests that it be provided in a visible, easily accessible location.

5. Electronic billing: regulatory projects

To address this point on the agenda, the Director of the Planning and Institutional Relations Service gives the floor to Mr. Javier Hurtado Puerta, Director of the Financial and Tax Inspection Department, who begins his presentation by pointing out that a distinction must be made between the project that develops the modification made in 2021 to article 29.2.j of the General Tax Law in relation to the prohibition of dual-use software or concealment of sales, and the project promoted by the Ministry of Economic Affairs and Digital Transformation to extend the obligation to all commercial relations between entrepreneurs and professionals to issue and send electronic invoices. He adds that he has made these clarifications in order to avoid confusion, since some sectors have been seeing that the second project subsumes the first, which is not the case, given that the project promoted by the Ministry of Economic Affairs and Digital Transformation only affects invoices B2B , while the one promoted by the Tax Administration also refers to B2C .

Finally, the Director of the Department of Financial and Tax Inspection adds that the Draft Royal Decree approving the regulation establishing the requirements to be adopted by computer or electronic systems and programs that support the billing processes of entrepreneurs and professionals, and the standardization of billing record formats is pending the report of the Council of State and that, depending on it, the wording of the project may undergo some alteration. However, it indicates that, in any case, it will be compatible with the regulatory development relating to electronic invoicing in Law 18/2022. Finally, he points out that, given the dates, it is almost certain that its entry into force will be postponed.

Next, Mr. José Borja Tomé, Director of the Tax Information Technology Department, takes the floor and points out that it is necessary to differentiate that, on the one hand, there are the systems of reporting fiscal, such as the SII or the Veri*factu project, whose objective is to send the tax authorities relevant information on invoices from a fiscal point of view, and, on the other hand, there is the electronic exchange of invoices between companies and professionals established by Law 18/2022, whose objectives include controlling late payments. On the other hand, the Director of the Tax Information Technology Department comments that, as all those present know, this latest project is currently in the prior public consultation phase, and that it expressly mentions that it is a model intermediated by a network of electronic invoice exchange platforms, as well as a series of other characteristics in relation to the admissible formats, their interoperability, etc. Thus, Mr. José Borja adds that the Ministry of Economic Affairs and Digital Transformation has had from the beginning a conception of the project based on electronic invoicing platforms and, however, the Tax Agency has been warning, also from the beginning, that a model based on an interoperable network of platforms posed a series of challenges that were difficult to solve, such as, for example:

• It would entail a recurring cost for companies and professionals since they would have to contract the service with a private platform and, even if it were provided free of charge, they would be paying a cost through the communication of sensitive information in relation to their business operations.
• Although the possibility of the Tax Agency or a third party developing a public interoperability node to solve the problem of free communication between different platforms has been raised at some point, any such node would provide limited interoperability and the Tax Agency would not be in a position to undertake its construction, since putting interoperability into practice can be very complex, both due to the difficulty in defining and requiring it and in ensuring it.
• A way of ensuring the integrity of invoices would have to be established, probably through cryptographic electronic signature systems, which would complicate their implementation and use. Furthermore, it can be challenging to ensure such integrity when making the necessary format conversions.
• Supporting a multiplicity of formats would also generate costs for processing invoices. Furthermore, the fact that these formats can vary over time and have several variants can, in practice, represent an additional element of complexity.
• It would be necessary to determine what level of security would be required of the platforms, taking into account that the higher the level, the less likely they would be to suffer cyber attacks. However, if the level of security required is very high, there would be fewer electronic invoicing service providers, which would lead to higher prices.
• It would be very costly for companies and professionals to comply with the obligation to report all payments. It would also be necessary to establish how the platforms consolidate and deliver the information to the Administration.

Mr. José Borja continues his presentation by clarifying that the Ministries of Economic Affairs and Digital Transformation and of Finance and Civil Service have been working together to determine the technical and information requirements to be included in the electronic invoice and that, within the framework of said work, the Tax Agency has presented a comprehensive proposal to provide an efficient and viable solution to the issue, which is also shared by the Ministry of Economic Affairs and Digital Transformation. Thus, the document submitted to the prior public consultation process expressly states that one of the main elements on which the development of the model is based is that it will be “complemented by a basic public system for the exchange of invoices provided by the public administration in which the issuers of electronic invoices or their designated platforms will have the obligation to deposit them in a single format at the headquarters of the Tax Agency, which will formally validate them and make them available to their recipients or their representatives or platforms at that same headquarters”.

Mr. Francisco Vidal comments that this last question is of great interest to SMEs and self-employed workers since it follows that the system that is obligatory is the one that complements and that it has this complementary character because there will be private platforms for voluntary use. He adds that this public system can be a solution for a large group of people.

Mr. Javier Hurtado points out that the term “supplemented” used in the consultation may be misleading, but that the interpretation of the representative of CEPYME is correct.

The Director of the Tax Information Technology Department, for his part, indicates that this public invoice exchange system could resolve many of the challenges outlined, but only if its function is adequately designed in the architecture of the model. Thus, its structure is based on:

• Establishment of a public system for the exchange of B2B invoices in a single format.
• Obligation to communicate all B2B invoices to the electronic headquarters of the Tax Agency by their issuers.
• Made available to recipients on the electronic headquarters of the Tax Agency. Thus, as a universal obligation, all companies and professionals will have all their invoices available online. However, the taxpayer may also use a private invoicing platform to exchange invoices and manage everything related to them.
• It is an additional system to those of reporting fiscal, thus allowing the obligations of both (communication between companies, in the first case, and information to the Tax Agency, in the second) to be fulfilled independently, so that the modification in a detail data of the invoice does not necessarily imply the obligation to modify it in both systems.
• Validation of the format and the NIF of the issuer and receiver of the invoices at the headquarters of the Tax Agency, rejecting those that do not conform to the standard format. This validation is the minimum required for invoice recipients to automatically integrate the electronic invoices received into their computer systems. Initially, reasons of simplicity advise against rejecting invoices for other reasons, so as not to hinder the exchange of invoices and limit the Tax Agency's access to the non-tax content of the invoices. However, the possibility and opportunity of other content validations and, in particular, their consistency with the VAT record books will be evaluated later.
• The Tax Agency will offer a form at its headquarters for the preparation and registration of simple invoices for small issuers. These invoices will be available to their recipients at the Tax Agency's electronic headquarters.
• As regards information on the payment of invoices, a system is initially established which only provides information on the moment of full payment of the invoices. Furthermore, this information would not be linked to the electronic invoice document exchanged between companies and professionals, but to the billing records communicated to the Tax Agency through the systems of reporting fiscal, distinguishing the obligations depending on whether it is a large company or an SME:
  • For employers obliged to SII : obligation to report through the Tax Agency headquarters the total payment for each invoice received that they record in their invoice receipt registration books. The invoice issuer will have the possibility to consult and report a discrepancy in the payment date on the electronic headquarters of the Tax Agency.
  • For entrepreneurs and professionals not required to SII : possibility of reporting through the electronic headquarters of the Tax Agency the total payment of each invoice in its register of issued invoices. The recipient of the invoice may consult and report a discrepancy in the payment date on the electronic office of the Tax Agency.

Finally, Mr. José Borja indicates that the following advantages of this proposal can be highlighted:

• This is a viable alternative with a moderate cost for companies and professionals, lower than any other alternative in the proposed timeframes.
• The different parts of the project can be developed independently and will add value as soon as they are put into service. For example, payment information that would be articulated on the current books of invoices received from SII , can begin to be consolidated regardless of whether the complete invoice information from all business owners and professionals has begun to be received.
• It does not require entrepreneurs to communicate sensitive information about their commercial activity to private platforms.
• By establishing a unique format, the system allows companies and professionals to exchange structured electronic invoices that can be automatically incorporated into their computer systems.
• A system is being implemented that allows for basic control of payment periods, especially for large companies, without imposing a disproportionate burden of information. This information will be consolidated in the Tax Agency for use by the economic authorities.
• The risk of invoice alteration on private platforms with fraudulent intent is reduced.
• Maintaining a minimum validation of the format and the NIF of the invoices exchanged in the system will make its deployment easier. Similarly, maintaining a submission of invoice content independent of the submission of billing records from the SII and Veri*factu systems will simplify compliance with the obligations of business owners and professionals.
• Additionally, and on a voluntary basis, private platforms may be used for purposes that provide added value to the mere exchange of invoices in a standard format.
• A future convergence of tax information systems and invoice exchange is much simpler in the proposed model than in any other that could be proposed.

Mr. Francisco Vidal then intervened to request that the documentation relating to the matters set out in this point of the agenda be provided to him in order to forward it to the members of his organization. The representatives of the Tax Agency replied that, after the plenary session, a document explaining in greater detail what was presented at the meeting will be sent to the members of the Forum. They also point out that, given that the bill on the exchange of invoices is in the prior public consultation phase, they consider it appropriate to encourage the groups represented in the Forum to participate in it and submit their proposals and observations, since the opinion of SMEs and self-employed workers on this regulatory project is of considerable importance.

Mr. Francisco Vidal takes the floor again to point out that knowing the Tax Agency's vision of the electronic invoice exchange project is very useful to them, since at this moment in CEPYME they are studying the text in depth with the different sectors that comprise it and the reality is that the positions that are being found, in general, and regarding the late payment and payment status of the invoices, in particular, are quite diverse. Thus, as regards meeting the solvency requirements to access certain subsidies, for example, there are those who believe that if you have made a payment, even if it is not complete and is only partial, it should also be taken into account for the purposes of assessing the degree of delinquency. In addition, there are sectors where split payments are common and others where payment terms are closely linked to the unique characteristics of their activity. The representative of CEPYME indicates that with these examples he has cited he wants to illustrate the great variety of situations that occur and that the fact of not being able to access a subsidy or aid due to having had a delay in the payment of one or two invoices is a rather problematic issue. However, he adds that it is clear that establishing objective rules cannot cover all the situations of business management.

The Director of Tax Information Technology replies that only the full payment of the invoice has been included because the aim is for the system to initially be as simple as possible and to simplify compliance with obligations. He adds that once the system is up and running, if any aspects that need improvement are detected, new features will be implemented. It also indicates that, obviously, an entity that has a computer system that resolves business management in a comprehensive manner has no problem reporting partial payments or any issue related to its invoices, but that, in the case of people who do not have these automated services, having to record each event in relation to each of their invoices in order to comply with their obligations can involve a considerable effort. He added that the participation of financial institutions in the project was being studied in order to integrate everything related to payments and control whether these were actually made, but it was ruled out due to the complexity involved, especially in relation to identifying the recipient and the origin of the payment at the time of payment, as well as the invoice to which it referred.

6. New Auction Portal AEAT

For the development of this point of the agenda, the Director of the Planning and Institutional Relations Service gives the floor to Ms. Virginia Muñoz Fernández, Director of the Collection Department, who, supporting her presentation with a power point presentation, reports that on November 24, the Tax Agency launched the “Project for the commercialization of assets at auction”, consisting of a new information and assistance system in matters of alienations focused not on debtors with the Public Treasury affected by an alienation procedure, but on all those persons interested in participating in said procedure. He added that the purpose of the new feature is to promote the sale of seized movable and immovable property through electronic auctions held by the Tax Agency. The Director of the Tax Collection Department points out that, briefly, the following aspects of the new system can be highlighted:

• Internally, the National Disposal Team and the National Auction Board were created, which has made it possible to provide the service and make decisions at a national level, standardizing the disposal procedures. Likewise, the management and purification of the stock It is unique for the entire national territory, having implemented a computer function ("asset selection map") that allows the classification of an asset according to an algorithm that determines its alienation capacity (based on the type of asset, alienable right, percentage of ownership, value, charges, etc.) and that, in addition, geopositions the real estate in google maps .
• A specific telephone service has been launched to provide the general public, and not just specialists in the field, with personalized attention, providing them with the information they need and guiding them throughout the entire process, with the aim of increasing participation and the amount of the awards. In addition, the new service has an “outgoing call” system. It also has an internal audit system to ensure compliance with rigorous quality standards.
• The new functionality, whether on the Tax Agency's electronic headquarters or in the APP, is visually attractive, accessible and easy to use, so it is expected to encourage participation. Its appearance is similar to other platforms on the market.
• Initially, it is aimed at the sale of real estate, although its extension to movable property is planned during 2023.
• The auctioned properties include detailed descriptions, photos and all the information considered useful for the public, as well as a link to the property's cadastral information. It also includes a link to the Auction Portal BOE , where you can consult the auctions that are active and participate in them.
• The assets can be viewed in “List” or “Map” format and, in any case, there is a system of filters and search engines that is complemented by a catalogue of frequently asked questions in order to facilitate management for people who wish to participate. In addition, interested parties can save their search criteria and subscribe to a “notifications” service that will allow them, after electronic identification, to receive a SMS  or an email when there are new assets that meet those criteria.

Mr. Francisco Vidal then asks how many auctions are held each year, as well as the expected dates for starting vehicle auctions, given the existing demand for the latter.

The Director of the Revenue Department answers that at this time she does not have the number of auctions, but that there are many and, in addition, with the new functionality they have increased. As for vehicles, he indicates that the system is being refined. stock to manage them at a national level and it is hoped that in 2023 they can be incorporated into the new auction system.

7. Next call: dates and subjects to deal with

Mr. Ignacio Fraisero comments that, as agreed in the amendment to the Forum's Operating Rules approved in point 3 of the agenda, the next plenary session is scheduled to take place in March 2024 and will be held jointly with the plenary session of the Forum of Federations and Associations of Self-Employed Workers. However, the Director of the Planning and Institutional Relations Service adds that the date is indicative and, of course, it would be possible to modify it depending on the evolution of the activity of the working groups.

8. Other considerations, requests and questions.

The Director of the Planning and Institutional Relations Service then offered the floor to those present at the meeting in case they wished to make any comments. Since no one intervened, he thanked everyone for attending and closed the third plenary session of the Small and Medium-sized Enterprises Forum.