On the 2nd December 2016, the Spanish Official Gazette published the Royal Decree 596/20016, for the modernisation, improvement and promotion of the use of electronic means in the management of Value Added Tax, known as the Immediate Provision of Information (SII) in VAT.
The Spanish State Tax Administration Agency (AEAT) is now in the process of rolling out the new SII system, starting with a pilot project to test this new model of electronically reporting VAT with companies and suppliers involved in the implementation of the SII system. As of July 2017, in its initial phase, SII will be compulsorily for over 62,000 companies that currently have to self-assess VAT monthly:
› Large companies (turnover more than € 6,010,121.04)
› VAT groups
› Taxpayers registered in the monthly VAT refund regime Registered in the REDEME A company registered in REDEME who does not wish to apply for VAT reporting to SII will be able to withdraw from REDEME before the SII comes into force.
› The new SII will also be available to other companies who voluntarily decide to subscribe to the VAT tax reporting to SII. To do so, companies must state their intention in the November, prior to the year of implementation, by using the VAT form - 036.
Before January 1st, 2018, companies having to comply with the new electronic registration requirements, as well as those voluntarily opting in, must also report their VAT records for the period from January 1st to June 30th, 2017.
The change introduced by SII is essentially to keep VAT ledgers in the VAT Regulations through the electronic system of the Spanish Tax Authorities. The regulations cover four VAT record books:
› Invoices issued
› Invoices received
› Investment assets
› Intra-community transactions
Record book of cash amounts with the rollout of this new system, it will not be necessary to present the forms 340, 347 or 390 at the end of each period. The VAT records will be managed and checked remotely via the AEAT electronic office. The VAT related information that will need to be provided, besides the usual information already included in the VAT ledgers (invoice date, customer or supplier identification, taxable base, etc.), will involve new fields such as description of transactions, reference of the rectified invoice, settlement period of transactions, deductible VAT quota in the case of invoices received, as well as other occasional items.
If you would like a copy of our recently published white paper : Spain 2017 Vat Immediate Supply of Information | Suministro Immediato de Information (SII) then please contact us at: firstname.lastname@example.org