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The Tax Agency launches a new VAT management system based on real-time information from business transactions

`SII´ System

  • After each billing, taxpayers must send the Tax Agency within a maximum of four business days the details of the invoices issued and received. 
  • It will only be mandatory for a group of 62,000 taxpayers, made up of large companies, VAT groups and registered in the monthly refund regime. 
  • They will have ten more days to complete their self-assessments and will not have to submit forms 340 (registration books), 347 (transactions with third parties) and 390 (annual summary). 
  • With the information received and that recorded in the database, the AEAT will prepare the taxpayer's tax data, for VAT purposes, facilitating the tax declaration.

 

October 20, 2014.- The Tax Agency has launched a strategy to modernize its management of Value Added Tax that will speed up refunds, provide taxpayers with tax information for their returns and carry out verification actions in a more agile and effective manner, all thanks to the Agency's practically real-time knowledge of commercial transactions in which those affiliated with the system participate.

The new Immediate Information Supply (SII) system will come into force on 1 January 2017, so that there is sufficient time to introduce the necessary regulatory changes, adapt the Tax Agency's IT systems and facilitate the adaptation of taxpayers. It will only be mandatory for a group of around 62,000 taxpayers, made up of large companies, corporate groups for VAT purposes and registered in the monthly tax refund regime ('Redeme'); collective that, however, represents 80% of the total turnover of VAT taxpayers in Spain. The rest may join the system voluntarily and, if they wish, withdraw from the system at the end of each year.

 

An instant information model

The proposed change consists of establishing the obligation to submit the registration details of the invoices (not the invoices themselves) that must be recorded in the 'registration books'. These shipments to the Tax Agency will involve keeping the VAT registration books through the Agency's website ( Headquarters.agenciatributaria.gob.es ), where these books will be created with each one of the shipments of the details of the operations carried out.

The information to be submitted will include the essential elements of the invoice issued or received and, in the case of the registration of invoices received, the deductible fee. At the same time, the possibility of making summary entries (even in the case of tickets) will be eliminated in order to facilitate the automation of the sending of billing records and, in turn, improve the control tools and the detection of so-called 'dual-use software' (computer programs that allow sales to be concealed).

To send the information to the Tax Agency, taxpayers registered in the system will have a maximum period of four days from the moment they issue or receive an invoice. At any time, by accessing the Agency's website, the taxpayer may consult both the information sent by him/herself and that attributed through information from third parties who have also provided the records electronically.


VAT tax data

Following a scheme similar to the traditional personal income tax scheme, the new system will allow the Tax Agency to create tax data that the taxpayer can use when submitting their VAT return.

Furthermore, and so that the taxpayer can verify the details of the transactions attributed to him and use this information for contrast when preparing his declaration, the deadline for submitting periodic self-assessments is extended until the first thirty calendar days of the month following the corresponding monthly or quarterly settlement period, as appropriate, or until the end of February, in the case of the monthly settlement of January.

 

Advantages of the system

- Voluntary compliance is facilitated: In the AEAT electronic headquarters, the taxpayer will have a “declared” registry book and another “verified” one with information from third parties belonging to the group of this system or from the AEAT database itself. These tax data will be a useful tool to assist in preparing the declaration, reducing errors and allowing for simplification and greater legal certainty.

- Reduction of indirect charges: Formal obligations are reduced, by eliminating the obligation to submit information returns corresponding to forms 347 (third party information), 340 (operations in record books) and 390 (annual VAT summary).

- Longer deadline for VAT settlements: The deadline for submitting periodic self-assessments is extended by ten days.

- More selective and faster checking: By obtaining information on transactions practically in real time, the Tax Agency will be able to anticipate the verification, thus speeding up control and tax refunds. This streamlining will be more pronounced when the client and the supplier belong to the group of this system, since the information on the operations between both will be already exchanged. Furthermore, the availability of complete ticket information will allow for control of invoicing carried out through cash registers.