Real-Time Taxation Update: VAT Reporting gets Real (-Time) in Spain

Ready or not, real-time taxation is here, or, at least, something very close to real-time. Spain’s new VAT legislation, the Suministro Inmediato de Información (SII), which went into effect in July, requires some taxpayers to submit invoice data for both sales and purchases in XML format within four days of certain transactions. While several EEC countries have adopted Standard Audit File for Tax (SAF-T) requirements for electronic VAT reporting on a periodic basis, Spain is the first to require this kind of near-real-time information.

A new Vertex two-pager, SII in Spain – What You Need to Know, provides a detailed overview. Here are some important points to note:

• SII is compulsory as of 1 July 2017 for businesses, resident or not, that file monthly returns.
• For intra-community sales of goods, the information should be electronically provided within four days from the moment the transport begins; for intra-community acquisitions, the deadline is four calendar days from when the goods are received.
• For businesses subject to the electronic filing requirements, electronic information for the first semester of 2017 must be submitted by 1 January 2018.
• Between 1 July 2017 and 31 December 2017, the submission deadline is eight days instead of four.
• Information relating to investment goods should be provided when filing the last VAT return of the year.

In his July post, “The Rise of Real-Time Taxation,” Vertex Director of Strategic Development and Emerging Markets David Deputy examined some of the broader implications of tax authorities’ moves toward tighter filing deadlines. David promised that Vertex will keep you posted on the shift to real-time and what it means for your tax management activities. We’ll continue to do that – stay tuned.