On 30 December 2017, Royal Decree 1072/2017 was published in the Official State Gazette (BOE), of 29 December, amending the tax penalty system general regulations, including the fines to be imposed on companies participating in the new real-time VAT management system (Immediate Supply of Information, SII) who fail to comply with the deadlines established for the presentation of their invoices before the Tax Agency.
We remind you that the new SII system, which entered into force on 1 July, requires certain companies to present their VAT record books, in general, in a period of 4 calendar days and, in any case, before the 16th of the following month.
Specifically, it is a requirement for all taxpayers with 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).
Until now, failure to comply with deadlines did not entail a fine, however, as of 1 January 2018 companies who delay in the obligation of keeping the Records Books through the Tax Agency’s Electronic Office will be fined in accordance with the following rules:
A proportional fine will be imposed of 0.5% of the invoice for delays relating to Record Books of invoices issued and invoices received. This percentage will be applied to the total amount corresponding to each invoicing record, including taxes and surcharges passed on and incurred, as well as any VAT compensation received or paid that may arise from the transaction.
A fixed monetary fine of 150 euros will be imposed per record, in delays relating to Investment Asset Record Books and for certain intra-Community transactions.
In the case of transactions under the special VAT cash regime:
When this concerns a record corresponding to the invoice of the transaction, the total amount will be that relating to the same, regardless of whether it is accompanied by the information regarding the corresponding collection or payment.
When it only concerns the record relating to the corresponding collection or payment, that which refers to the monetary amount to be reported.
A minimum quarterly fine of 300 euros is established with a maximum of 6,000 euros per each calendar quarter.
In view of the foregoing, it is worthwhile to keep up to date and comply with the deadlines, because there is going to be no leeway or tolerance for delays.
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Arrabe Integra
Tax Department
