Tax Agency: Frequently Asked Questions. General issues

It is about changing the current VAT management system which has been in place for 30 years, introducing a new bookkeeping system for Value Added Tax on the AEAT online system, by providing all billing records virtually immediately. 

Hence, the new Immediate Supply of Information accelerates the gap between recording or booking invoices and the actual realisation of the underlying economic transaction.

Because the current technological situation allows its implementation at this time, to improve taxpayer assistance and taxation controls.

The new SII will be mandatory for the following taxpayers who have a monthly VAT settlement period: 

• Registered with REDEME (Monthly VAT Return Registry)

• Large Businesses (turnover of over €6,010,121.04)

• VAT Groups 

The new SII can be applied to all other taxpayers who choose to opt in voluntarily.

Yes. Royal Decree 529/2017, of 26 May (Official State Gazette of 27 May), adds a fourth additional provision to the VAT Regulation, approving an extraordinary time frame for deregistering from the REDEME.

This cancellation application could be implemented by presenting census form 036 up to 15 June 2017, taking effect on 1 July this year.

If you have chosen to include VAT charges on imports in your VAT self-assessment, this would be excluded from your application when the liquidation period no longer coincides with the calendar month.

Entrepreneurs or professionals not established in the Spanish territory of application of the Tax (TAI) who have the status of taxable persons with a monthly settlement period will be obliged to keep VAT record books and, since the entry into force of Royal Decree 596 /2016, they must take them through the electronic headquarters of the State Tax Administration Agency (SII).

An exception is made for those who are not established whose only translations carried out in the TAI are intra-Community acquisitions exempt according to article 26, section Three and Four of the Value Added Tax Act, and who do not submit Form 303. In such a case, they obtain the refund for the amounts borne in the TAI through the provisions of articles 119 or 119 bis of the Value Added Tax Act.

Similarly, the new SII can be applied to all other taxpayers who, established or not, choose to opt in voluntarily.

Opting in on the tax register declaration (boxes 143 and 532 of form 036), which will be included on the day following the end date of said option's settlement period.

Example: a company that has opted in to SII, submitting form 036 on 10 April 2019, will be included in the system as of 1 July 2019.

Opting in, in 2017, implied the obligation to file monthly self-assessed VAT returns.

For assessment periods starting after 2018, taxpayers who have opted in to SII will maintain their quarterly settlement period.

Yes. Parties opting in must remain for the calendar year.

Parties opting into SII must comply with the supply of invoicing records during the months of the calendar year they have opted in to.

Once this is fulfilled, parties may opt out of the system in the tax register declaration (form 036) in the month of November prior to the start of the calendar year in which it comes into effect.

Unless the business owner or professional still has a monthly settlement period:

• Exclusion from the REDEME means exclusion from the SII from the first day of the settlement period in which the exclusion agreement has been notified.

• Discontinuing the application of the special regime for business groups means leaving the SII from the moment this takes place. 

Excluded taxpayers shall be obliged to file forms 347 and 390.

Taxpayers applying the SII must keep the following Record Books on the Tax Agency's E-Office, supplying invoicing records electronically: 

• Issued Invoices Record Book.

• Received Invoices Record Book.

• Investment Goods Record Book.

• Record Book for Certain Intra-Community Transactions. 

To do this, the taxpayer must send the Tax Agency billing details and using this information the different Record Books will be configured, practically in real time.

This information will be sent electronically, specifically using Web Services based on XML message exchanges.

These messages will all have the same header stating information on the holder of each record book, as well as information for the year and period in which the transactions were performed. This header will be followed by a block containing the invoice contents.

Furthermore, the electronic supply of invoice records is done using an online form when the taxpayer has a small number of transactions or the taxpayer wishes to send specific invoice records separately.

 This information shall be supplied in accordance with the record fields approved by the Ministry of Finance and Civil Service through the corresponding Ministerial Order HFP/417/2017, of 12 May

No. What shall be sent are the invoice record fields specified in the Ministerial Order HFP/417/2017, of 12 May, concerning information referred to in Royal Decree 596/2016 of 2 December.

A) Issued Invoices

Within four calendar days of invoice issuance, except in the case of invoices issued by the recipient or by a third party, in which case the period is eight calendar days.

In any event, the supply of goods or services must be carried out before the 16th of the month in which the Tax on the transaction that is to be recorded accrues. However, for operations not subject to the Tax for which the invoice is issued, the last period will be established according to the date on which the transaction is carried out. This deadline coincides with the end of the term to issue an invoice in accordance with article 11 of the Royal Decree 1619/2012, thus if a business issues the invoice on the 15th day of the month following the accrual, that same day they should send the invoicing records through SII (except in the case of intra-community shipments).

Example 1: business A provides a service to another business on 2 August 2019, issuing the corresponding invoice on the same day. The term to send the record of this invoice through SII finishes on 8 August.

Example 2: business A provides a service to another business on 3 September 2019, issuing the corresponding invoice on 11 October 2019 (the issuance term finishes on 15 October). The term to send the record of this invoice through SII finishes on 15 October (operational on deadline).

Example 3: an employer makes a delivery within the EC to a French client. The start of transportation of the goods is 19 October 2019 and the invoice is issued on 15 November 2019 (last day to issue the invoice in accordance with article 11.2 of Royal Decree 1619/2012 and the date on which the accrual of the operation takes place). The term to send the record of this invoice through SII finishes on 21 November.

B) Received Invoices

Within four calendar days of the accounting record of the invoice and, in any event, before the 16th of the month following the settlement period in which the corresponding transactions are included (term in which the VAT borne is deducted).
The accounting of the invoice is understood to have taken place on the date of entry into the accounting system, regardless of the date shown on the accounting entry.

Example 4: a business that receives an invoice on 9 July 2019 decides to enter and deduct the amount borne in Form 303 of July, and proceeds with accounting the invoice with date of entry into the system on 13 August. The term to send the record of this invoice through SII finishes on 16 August 2019 (operational on deadline).

Example 5: a business that receives an invoice on 9 August 2019 and proceeds with accounting with date of entry into the system of the invoice on 13 October. The term to send the record of this invoice through SII finishes:

a) On October 15th if you deduct the invoice in the September 303 form (the deadline applies).
b) on 17 October, if the invoice is deducted in Form 303 of October.

In accordance with previous examples, an invoice can be deducted once it has been received and it is entered in the record book of invoices received before the end of the term to submit Form 303, in which it is included. Nonetheless, it is important to take into account the deadline to send records through SII on the 15th day of the month following that in which the deduction takes place.

Example 6: an employer proceeds to account an invoice received, for which they do not have the receipt date. The date of entry into the system is 13 October 2019. The term to send the record of this invoice through SII finishes on 17 October. The bill can be deducted starting from the settlement period corresponding to October.

In the case of imports, the four calendar days apply from when the document stating the customs VAT settlement is recorded for accounting purposes, and in any event, before the 16th of the month following the settlement period in which the corresponding transactions are included (term in which the VAT borne is deducted).

Example 7: an employer imports goods released for free circulation on 25 October 2019, and the SAD acceptance and settlement of IVA by the customs occurs on that same date. The business decides to enter and deduct the amount borne in Form 303 of October and proceeds with accounting the invoice on 9 November 2019. The term to send the SAD record through SII finishes on 14 November.

C) Certain Intra-Community transactions

Within the four calendar days of the date of dispatch or transport or, if applicable, from the date of receipt of the goods in question.

D) Information on Investment Assets

Within the filing period of the last settlement of the year (up to 30 January).

E) Rectified invoices

Within four calendar days of the issue date or the accounting entry of the invoice, respectively.

In the event that the rectification determines an increase in the amount of the quotas initially deducted in accordance with the provisions of article 114.Two.1 LIVA, the term will be the general term of invoices received.

TERMS DURING THE SECOND HALF OF 2017: During the second half of 2017 the four-day term was extended to eight calendar days.

PERIODS WHEN INCLUSION IN THE SII TAKES PLACE ON A DATE OTHER THAN 1 JANUARY: The period for dispatching the information corresponding to the period between 1 January and the date of entry in the SII will be from the date of entry until the end of the fiscal year.

TERM CALCULATIONS: We must take into account that the calculation of the four and eight calendar day terms referred to above exclude Saturdays, Sundays and national holidays.

If the deadline of the 15th day of the following month is a Saturday, Sunday or national holiday, it shall be transferred to the following business day.

No, it's about sending to the Tax Agency's E-Office certain information that is currently in:

• VAT Record Books

• Invoices

• Forms 340 and 347

   The information regarding the Issued Invoices Record Book that should be notified to the Tax Agency on the new Immediate Information Sharing System (SII) (contained in the current Record Books and in the invoice fields) is that shown in the following:

 INFORMATION TO BE SENT WITH THE S.I.I. (Immediate Information Sharing System) 

For its part, the information pertaining to the Received Invoices Record Book that should be notified to the Tax Agency through the new Immediate Information Sharing System (S.I.I.). (contained both in the current Record Books and the invoice fields) as follows: 

INFORMATION TO BE SENT WITH THE S.I.I. (Immediate Information Sharing System) 

Yes. This should be notified using Form 036 from June 2017, selecting box 740, stating in box 739 (page 5) the date of agreement (first mark cause 123 on page 1 "Modification of VAT details").

The Immediate Supply of Information system (SII) has the following advantages for the taxpayer:

• Reduction of formal obligations, removing the obligation to file forms 347, 340 and 390. 
• "Fiscal Information" shall be obtained, since the taxpayer shall avail of a "filed" and a "compared" Record Book in the Tax Agency E-Office, with all the information from third parties within the collective.
  Similarly, you will be able to access information on the invoices registered in the Record books of your clients and/or suppliers that apply the SII.
  These tax details are a useful tool to assist in preparing the return as they will reduce errors, make things easier and enhance legal certainty.
• Extension of ten days to the period for filing regular monthly self-assessments. 
• Reduction in terms for filing VAT returns, since the Tax Agency has the information on transactions in almost real time and with greater detail on transactions. 
• Reduction in verification terms, for the same reasons as above.
• Decrease in information requirements, since many of the current requirements are aimed at requesting invoices or data contained therein in order to check certain transactions.

As of 1 July 2017, the obligatory phase began for applying this system, both for taxable parties whose inclusion is mandatory, and for those who chose to be included voluntarily in the month of June 2017.

As of 2 January 2017, a voluntary phase began with a test environment, which will be available indefinitely. This permanent test environment is open to all taxable parties, whether their SII participation is mandatory or voluntary, without there being a limited number of submissions that can be made. 

Taxable parties who applied SII as of 1 July 2017, except for those registered in the REDEME, were required to provide invoicing records from the first half of 2017, in the period from 1 July to 31 December 2017.

In Royal Decree 596/2016 of 2 December on the modernisation, improvement and promotion of the use of electronic media in the management of Value Added Tax, which modifies the VAT Regulation approved by Royal Decree 1624/1992 of 29 December, the General Regulations for tax management and inspection actions and procedures and for the development of shared regulations for tax application procedures, approved by Royal Decree 1065/2007 of 27 July, and the Regulation governing invoicing obligations, approved by Royal Decree 1619/2012 of 30 November (Official State Gazette 6 December). 

The fields for recording the information to be provided have been approved by the Ministry of Finance and Civil Service through the corresponding Ministerial Order HFP/417/2017, of 12 May

No

In order to manage VAT refunds requested, the returns for the months of January to June of 2017 had to be filed.

No. The withdrawal of the obligation to submit Form 390 shall be included in the Ministerial Order of the Ministry of Finance and Civil Service HFP/417/2017, of 12 May.

The Immediate Disclosure of Information (hereinafter, 'SII') will be applicable in the terms established by provincial regulations.

During the 2017 fiscal year: For all employers with a tax address registered with a Provincial Treasury, whose total trading volume in the previous year (2016) was greater than 7 million euros, of which 75% or more was carried out in the common territory, SII was applicable to them in accordance with state regulations.

2018 onwards:

• Those business owners with tax domicile in Navarra, whose total volume of operations in the previous year exceeded 7 million euros, of which 75% or more were carried out in common territory, will apply the SII in accordance with state regulations.
• Those business owners with tax domicile in the Basque Country, whose total volume of operations in the previous year exceeded 10 million euros, of which 75% or more were carried out in common territory, will apply the SII in accordance with state regulations. Starting from fiscal year 2022: Those business owners with tax domicile in Navarra, whose total volume of operations in the previous year exceeded 10 million euros, of which 75% or more were carried out in common territory, will apply the SII in accordance with state regulations.

Starting from fiscal year 2022:

• Those business owners with tax domicile in Navarra, whose total volume of operations in the previous year exceeded 10 million euros, of which 75% or more were carried out in common territory, will apply the SII in accordance with state regulations.
• Those business owners with tax domicile in the Basque Country, whose total volume of operations in the previous year exceeded 10 million euros, of which 75% or more were carried out in common territory, will apply the SII in accordance with state regulations.

Taxpayers must file the formal requirements required of them in accordance with the respective regulations, with the competent Regional or State Administration ratione loci, in accordance with the competency criteria for verification and inspection.

With respect to 2017 the inspection responsibility of Value Added Tax corresponds to the State when:

1. The taxpayer has their tax residence in common territory and their turnover in the previous year is less than or equal to €7m.
2. The taxpayer has their tax residence in common territory and their turnover in the previous year is over €7m, provided they carry out a percentage of their operations in common territory.
3. The taxpayer has their tax residence in regional territory and their turnover in the previous year is over €7m, provided a percentage of their operations carried out in common territory is equal to or over 75%.

This criterion was applicable in the years 2018 to 2021 to determine the State's inspection authority for those taxpayers who must pay taxes in proportion to the volume of their operations carried out in common and Navarrese territory.

From 2018 the inspection responsibility for taxpayers who must contribute in proportion to their turnover carried out in common territory and the Basque Country will correspond to the State when:

1. The taxpayer has their tax residence in common territory and their turnover in the previous year is less than or equal to €10m.
2. The taxpayer has their tax residence in common territory and their turnover in the previous year is over €10m, provided a percentage of their operations carried out in the Basque Country is not equal to or over 75%, or 100% in the case of companies under the special regime of groups of companies, in which case the responsibility would correspond to the Regional Government ratione loci.
3. The taxpayer has their tax residence in regional territory and their turnover in the previous year is over €10m, provided a percentage of their operations carried out in common territory is equal to or over 75%.

As of the 2022 financial year the inspection authority for those taxpayers who must pay taxes in proportion to the volume of their operations carried out in common and Navarrese territory will correspond to the State when:

1. The taxpayer has their tax residence in common territory and their turnover in the previous year is less than or equal to €10m.
2. The taxpayer has his/her tax domicile in the common territory and his/her volume of operations in the previous year is greater than €10 million, provided that the percentage of operations carried out in Navarrese territory is not equal to or greater than 75%, or 100% in the case of entities under the special regime for groups of entities, in which case the jurisdiction would correspond to the Navarrese Tax Authority.
3. The taxpayer has their tax residence in regional territory and their turnover in the previous year is over €10m, provided a percentage of their operations carried out in common territory is equal to or over 75%.

Yes. Royal Decree 529/2017, of 26 May (Official State Gazette of 27 May), adds a fourth additional provision to the VAT Regulation, which approved the extraordinary period for waiving the application of the special regime for groups of entities.

This waiver could be implemented by presenting census form 039 up to 15 June 2017, taking effect on 1 July this year.

The first records that should have been submitted within eight calendar days (excluding Saturdays, Sundays and national holidays) were those that comprise the Record books for July 2017, consisting in:

• Invoices issued from 1 July 2017 documenting operations accrued in the July liquidation period, in the case of the Record book of invoices issued. Invoices issued during the month of June or previous months documenting operations accrued in July (invoices with VAT pending accrual - codes 14 and 15) must be provided by 16 August, taking into account the registration deadline instead of the general time frame of eight days.
• Invoices recorded after 1 July 2017 whereby their deduction takes place in the July liquidation period, in the case of the Record book of invoices received. Invoices with VAT pending accrual recorded before 1 July, the deduction of which is due in the July liquidation period (since accrual takes place in July), should be supplied via the Immediate Information Sharing System (SII) until 16 August.
• Goods whose transportation or receipt takes place after 1 July 2017, in the case of the Record book of specific intra-community operations.

Yes, as the date on which the registration takes effect is 1 January 2018.

No

Yes, as they did not comply with the requirement of filing Form 340 every month during the first semester 2017.

Yes, as they did not comply with the requirement of filing Form 340 every month during the first semester 2017.

Yes, as they did not comply with the requirement of filing Form 340 every month during the first semester 2017. They should have also filed form 347 for 2017 including the information corresponding to the third quarter.

No, except in the case of taxpayers registered in the REDEME since 1 October 2017 (see FAQ 1.29)

No.