on 01 Jun 2017 12:32 PM
While the idea was launched back in 2014, 2017 is the year we will finally see the Spanish government pushing for more stringent and compulsory government reporting on invoices. The Immediate Supply of Information on VAT System (SII) is currently in its pilot program and will be a requirement for all companies which turnover is over 6M€ from 1st July and, probably, for the rest of business in Spain from the beginning of 2018.
What is SII?
SII is the Spanish Tax Agency (AEAT)’s new VAT management system. In a way to cut down on VAT fraud, this upgraded system will require companies to issue and receive electronic invoices and send electronic data of any invoice directly to AEAT within four calendar days (eight calendar days if invoices are issued by a third party). This also includes simplified invoices (receipts). So, basically, companies will be required to supply the tax agency with real time VAT data on all invoices.
What does this mean for business in Spain?
The introduction of SII is already underway with a number of businesses who have been selected to participate in this year’s rollout plan (Generix Group is included in this pilot launch). Once it becomes a requirement from 1st July of 2017, about 62,000 Spanish companies will be affected (so approximately 80% of transactions made in the Spanish economy). These companies include those whose trading volume is over six million euros, VAT corporate groups, voluntary participants, and companies registered in the REDEME scheme.
What does this mean for Generix Group?
Generix Group has already launched a solution that can easily be integrated into a company’s existing system. The platform will collect information through any ERP via an adaptor, convert it to the XML format required by AEAT’s system, and send all necessary information directly and securely to the tax agency. This solution will be available as SaaS and On-Site. Our aim is to make this transition to SII as pain-free for all businesses as possible.