Use of SII for sales tax reporting in SpainWhat is SII?

On 1st July 2017, the Spanish tax authority (AEAT) has brought into force a new VAT regulation, the so-called “Suministro Inmediato de Información” (SII).

To this end, a new system for the immediate transfer of information on turnover-related information was introduced, which significantly modifies the type of monthly sales tax applications (UVA), which have so far been common in Spain and many other EU Member States. On one hand, this sales-tax-related information must now be reported almost immediately after the start of the transaction. On the other hand, the information must be transmitted electronically via the new system SII – in a defined XML format.

Via this system, VAT-related information on incoming and outgoing invoices, certain intra-Community transactions as well as capital goods are to be transferred to the tax office almost at the time of the booking.

Who needs to use SII?

63,000 taxpayers in Spain have been obliged since July 1 to use the new system:

  • Large companies (Grandes Empresas) with annual sales above 6,000,000 euros
  • Groups of companies (Grupos de IVA)
  • Companies registered in the register for monthly turnover tax returns (REDEME, Registro de Devolución Mensual del IVA)

What are the advantages of SII?

The benefits of instant electronic sales tax reporting for taxpayers are as follows

  • Previously, required messages such as the submission of the forms 347, 340 and 390 by SII, are omitted
  • High-quality information on all tax records can be obtained online
  • Information requirements, such as the time limits for refunds, are reduced.

Which deadlines must be adhered at SII?

The companies concerned must submit their sales tax information electronically to the Spanish Financial Authority not later than every four days. By the end of 2017, an extended reporting period of a maximum of eight days shall apply, whereby the deadlines always refer to working days, i.e. Saturdays, Sundays and public holidays are excluded.

The AEAT checks the transmitted files and contents for errors and compliance with applicable business rules and returns the test results. Deviations and errors, in turn, must be corrected while observing the abovementioned reporting deadlines, which requires an immediate reaction of the taxpayer.

What happens if the reporting deadlines are not met?

On 30.06.2017, introduction of the penalties was postponed to 1st January, 2018, i.e. nothing has happened.

However, in the future, AEAT will be able to demand penalties for late or non-submission of information from taxpayers. The amount of the penalties is determined by AEAT as follows:

  • Delays will be punished with a fine equivalent to 0.5% of the invoice amount, with a minimum of EUR 500 and a maximum of EUR 6,000 being paid per quarter.
  • If no electronic transmission takes place at all, a penalty of equivalent to 1% of the annual turnover.

These penalties were originally intended to start the use of SII system from 1st July 2017 and were postponed by 6 months.

Details can be found in the document “Real Decreto XX/2017, de XX, por el que se modifica el Reglamento General de Régimen Sancionador Tributario aprobado por el Real Decreto 2063/2004, de 15 de octubre.”

With SEEBURGER, the complex SII process can be quickly and easily implemented in order to avoid penalty payments as of 1.1.2018

The SII process is complex and time-critical, especially with regard to any corrections to the originally reported data. In order to simplify the implementation and to minimize risks, it is recommended to work with a partner who knows requirements in Spain and other countries. The benefits are obvious: An experienced partner can accompany you during the introduction competently, can bundle your increasing international reporting and E-invoicing requirements and thus ensures unification and standardization. A start is also recommended by booking a cloud service. Because reporting requirements, such as those for Spain, can be technically complex and cause high initial costs in their own operation. This is matched by an immediately usable, preconfigured cloud service, to which the reportable data is to be transferred only in a clearly defined interface format.

With the SEEBURGER Cloud Services for e-Invoicing in Spain – and many other countries – SEEBURGER offers you a secure, comfortable, scalable and high-performance entry at full cost transparency. We generate XML formats defined by the AEAT in the current version, and transfer these files via SII to AEAT. These cloud services are independent of the ERP system and can be expanded to include legally compliant archiving.

Learn more about SEEBURGER Cloud Services for E-Invoicing