90% of companies obligated to the SII already report real time VAT on the Tax Administration server.
As reported by Santiago Menéndez, Director General of the Spanish Tax Agency, over 90% of companies required to inform on real time VAT are already doing so. Those participating in the SII can check the website of the Agency to see if their invoices match those declared by customers and suppliers and, prior to the end of the year, can also review whether any information is missing in regard to transactions that have been reported on by these customers and suppliers.
Those who have not yet incorporated the required information through the SII, or who have done so in an insufficient manner, are being notified although, at present, this will not entail the initiation of penalty procedures, pending specification of the regulatory amendment that will govern this.
WHAT IS THE “IMMEDIATE SUPPLY OF INFORMATION” (SII)?
It is the new Value Added Tax management system facilitated by technological advances that will improve tax control and assistance to taxpayers in fulfilling their obligations.
It is based on the keeping of Tax Record Books through the Electronic Office of the Tax Agency, through the practically immediate supply of invoicing records that form part of the VAT record books, within the following periods:
Invoices Issued: within a period of 4 calendar days from the issue of the invoice (period that during 2017 was lengthened exceptionally to 8 calendar days), unless this involves invoices issued by the receiver or a third party, in which case the period will be 8 calendar days. In any case, prior to the 16th of the month following that in which the accrual of the Tax corresponding to the transaction to be recorded is produced.
Invoices Received: within a period of 4 calendar days from the date on which the accounting record of the invoice is produced (period that during 2017 was lengthened exceptionally to 8 calendar days) and, in any case, prior to the 16th of the month following the settlement period in which the corresponding transactions have been included.
Certain intra-Community transactions: within a period of 4 calendar days, from the time of initiation of the shipping or transport or, where appropriate, from the time of receipt of the goods concerned.
Investment Assets: within the filing period for the last settlement period of the year (up to 30 January).
All taxpayers are obligated to use “SII” who have a monthly obligation of VAT self-assessment: Large Companies (turnover in excess of 6 million euros); VAT Groups; Registered in the REDEME (Monthly VAT Refund Registry).
However, any other VAT taxpayer may choose (during the month of November) for its implementation in 2018, and must remain in the system for the entire calendar year.
HOW WILL SII AFFECT YOUR COMPANY?
This innovative system will streamline refunds, facilitate voluntary compliance with taxpayer obligations, offer larger tax settlement periods and give access, where applicable, to a faster and more selective verification process.
Notwithstanding the benefits of the new system, its correct implementation, control of deadlines for sending invoicing records, as well as the verification of appropriate compliance with the rest of the tax requirements and obligations makes it absolutely essential to rely on a team of professionals specializing in SII management to avoid incurring in common errors that can entail costly fines in the event of non-compliance or even insufficient compliance.
ARRABE INTEGRA ASESORES – EXPERTS IN SII IMPLEMENTATION
Since July, our tax and technology consulting team, in coordination with the IT departments of our business clients, have developed an SII implementation model which, in addition to maintaining the use of client applications (A3, SAP, SAGE, CONTAPLUS, SALESFORCE, BUSINESSONE), automates processes and ensures required compliance in a practical and reliable manner.
Arrabe Integra
Tax Department