Xterna – Asesoria para PYMES en Barcelona

SPANISH new VAT reporting system

As of 1st July 2017, the Spanish Tax Authority will implement a new system of VAT invoicing registers. It will affect mainly those large-sized companies submitting VAT forms on a monthly basis.

This measure had been largely discussed for 2015 and it was planned to enter into force by January 2017. However, finally it was not approved. Surprisingly on December 6, 2016, Royal Decree 596/2016 was published in the Spanish Official Gazette, which, among other things, modifies the VAT Regulation, approved by Royal Decree 1624/1992, with regards to the VAT ledgers.

That is why Spanish-based entities, while aware of this new reporting system falling, expected to have an adaptation period equivalent to that originally planned (i.e.  at least one year). Actually, that has not happened and this new information supply system will enter into force on July 1, 2017.

All information related to invoices issued and received (i.e. VAT registration books) must be supplied by electronic means to the Spanish Tax Authorities within a maximum period of 4 business days (8 days during 2017), from the issue date of the invoice or, if applicable, the date of accounting.  The new regulation contains a transitional provision under which it will be mandatory to remit the billing records for the period from January to June 2017, within the second half of 2017. Therefore on 31st December 2017, the Spanish Tax Authorities will have on-line access to all the billing records of the entity.

In the case of intra-Community transactions, although the term is the same, the computation should be made according to the date when the transport starts or the date of receipt of the goods. Usually, this date is not registered in the accounting information used by the companies.

It is expected that, as from year 2018, this new system will serve to simplify the processes of completion and presentation of the VAT returns.

Once again, we are at your disposal to advise and acompany you in this new tax obligation

You can contact us through web@xterna.es or by calling 934 45 46 47