Assessment of the implementation of the Immediate Supply of Information

• More than 700 million invoice records from almost 50,000 companies have already been incorporated into the system, representing three quarters of the total turnover of VAT taxpayers in Spain.
• In the case of non-exempt companies that, therefore, settle VAT, 97% of the obligated entities have already joined the SII and, in them, the degree of coincidence between the invoices they have received and their VAT returns is 84%
• Those covered by the SII can now check on the Agency's website if their invoices match what was declared by clients and suppliers, and before the end of the year they will also be able to check if they still have to report on operations that those clients have reported and suppliers

October 20, 2017.- Almost 50,000 companies out of a total of 54,000 taxpayers that make up the census of the Immediate Supply of VAT Information (SII) have joined the system, so that more 90% of those obliged to the SII now inform the Tax Agency in practically real time of their commercial transactions with suppliers and clients.

At the beginning of October, there were already more than 700 million invoices issued and received for which information had been sent through the SII by a group of large companies, corporate groups for VAT purposes and entities registered in the refund regime. monthly tax ('Redeme') that represents 75% of the total turnover of VAT taxpayers in Spain, just five percentage points away from the objective of 80%, which will be reached when all taxpayers belonging to the census are incorporated. The global amount of invoices incorporated into the SII exceeds 630,000 million euros.

This census of taxpayers, made up of just over 54,000 taxpayers, is reached after the renunciation of Redeme and the special regime for VAT groups of less than 10,000 taxpayers who will be able to benefit again from the advantages of both special regimes if in the future decide to join the SII, thus also taking advantage of the advantages of this system that allows for faster refunds, facilitates voluntary compliance by taxpayers, reduces indirect charges, offers a longer period for tax settlements and gives access, where appropriate, to a Faster and more selective verification process.

High quality of information

Among the taxpayers obliged to the SII there are exempt entities that, as such, are not required to submit VAT settlements. Excluding these taxpayers and considering, therefore, only the part of the SII census that settles VAT, the degree of compliance exceeds 97% and, of these companies, in 84% of the cases there is no discrepancy between the invoices received that they have provided through the SII and their own VAT returns, which shows the high reliability of the information incorporated into the system.

As a result of the implementation of the SII, VAT refunds have already been accelerated to eligible taxpayers who have not presented incidents. In turn, an information letter has been sent to census taxpayers who have not incorporated the required information through the SII, or have done so in a very insufficient manner. These actions at the moment do not imply the initiation of any sanctioning procedure, pending the completion of the regulatory modification that will include the procedure applicable to non-compliance with the SII.

Upcoming actions

At this time, taxpayers included in the SII can now check on the SII website Agency whether their invoices match what was declared by clients and suppliers, and before the end of the year they will also be able to review whether they still need to report on operations that those clients and suppliers have reported.

Later, the AEAT will integrate the information declared by the taxpayer and that received from its suppliers and clients, and will develop a tool to incorporate this information into the VAT declaration itself.

Advantages of the system

• Voluntary compliance is facilitated: In the electronic headquarters of the AEAT, the taxpayer has a “declared” record book and another “verified” one with the information from third parties included in the SII. This information makes it possible to reduce errors in compliance with formal obligations and in the preparation of the declarations themselves.
• Reduction of indirect loads: 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.
• Improvement in VAT management: Incorporation into the SII allows companies to strengthen their internal accounting and billing processes.
• More selective and faster checking: By obtaining information on operations practically in real time, the Tax Agency can anticipate verification, therefore streamlining control and tax refunds. This streamlining will be more accentuated when the client and the supplier belong to the group of this system, since the information on the operations between the two is already crossed.