Tax Agency:New VAT management system based on Immediate Supply of Information
It is a VAT management system based on the Immediate Supply of Information (SII).
- Taxpayers obliged to use the SII (and those who voluntarily decide to use it) must send the details of the invoicing records within four days via the Tax Agency's Electronic Headquarters.
- They are not obliged to file forms 347 (transactions with third parties), 340 (register books) and 390 (annual VAT summary).
- Taxpayers can cross-check the information in their registers with the information provided by their customers and suppliers as long as they are also included in the system.
This Value Added Tax management system is based on the keeping of the Tax Register Books through the AEAT's Electronic Headquarters by means of the quasi-instant supply of the invoicing records.
The "Immediate Supply of Information" (SII) represents a substantial improvement in the communication relationship between the Administration and the taxpayer, as it allows for a two-way, automated and instantaneous relationship.In turn, it is configured as a tool both to assist taxpayers and to improve and make tax control more efficient.For example, it allows the Pre303/LLAA service to be provided to certain taxpayers for the automatic preparation of the VAT self-assessment.
The SII basically consists of electronically transmitting billing records from VAT Books.To do this, the taxpayer must send the Tax Agency billing details electronically (using web services based on exchanging XML messages or, if applicable, by filling out the online form) and using this information the different Record Books will be configured, practically in real time.But taxpayers are not required to send the actual bills.
In the case of simplified invoices, issued or received, they may be grouped, provided they meet certain requirements, and the invoicing records of the corresponding summary entry may be sent.
The group compulsorily included in the "SII" is made up of all taxable persons whose obligation to self-assess Value Added Tax is monthly:
- Large Businesses (turnover of over 6 million euros)
- VAT Groups
- Registered with REDEME (Monthly VAT Return Registry)
This group has developed software systems which they are able to adapt in order to comply with the sending of invoicing records within four days (excluding Saturdays, Sundays and national holidays).
In addition, any other taxable person who so wishes may opt for its application.Exercising this option allows the quarterly settlement period to be maintained.It must remain in the system for at least the calendar year for which the option is exercised.The option to adopt SII must be undertaken during the month of November, before the start of the calendar year in which it should come into effect.
Advantages of the system
Quality information is available in a sufficiently short time interval to streamline the VAT management system.
Obtaining "Tax Data", as the taxpayer has at the AEAT e-Office a "declared" Register Book and another "contrasted" one with the contrasting information from third parties that belong to the group of this system or from the AEAT database.
Taxpayers can check this information before the deadline for filing their VAT return.
The taxpayer will be able to correct any error committed in filed returns without needing to be required to do so by the Tax Agency.
Reduction in the number of requests for information from the AEAT, as many of the requests are aimed at requesting registry books, invoices or data contained therein in order to verify certain transactions.
It modernises and standardises the method of keeping traditional VAT Record Books.
Reduction of formal obligations, removing the obligation to file forms 347, 340 and 390.
Reduction in terms for filing VAT returns, since the Tax Agency has the information on transactions in almost real time and in greater detail.