Spain – Draft legislation on new invoicing requirements
Spain has already announced that it will implement mandatory B2B e-invoicing starting in 2024. In preparation for this, draft legislation has been issued that sets out new strict IT, security and tax requirements for developers, marketers and users (i.e. Spanish taxpayers) of computer systems and invoicing software to meet. It will be an offense under the tax legislation for businesses not to meet the new specifications.
The new requirements include:
1. Software developers and solution providers must certify that their systems comply with the new standards and requirements. A statement must be in writing and visible in the computer system itself (for all versions), and at the point of sale for the customer. This declaration may also be requested by the taxpayer or AEAT. In addition, the AEAT can request information to verify compliance.
2. Systems must be able to generate a “registration billing record” at the time of (simultaneously) or immediately prior to the issue of an invoice.
3. Systems and software must guarantee the integrity, conservation, accessibility, legibility, traceability and inalterability of billing records (without any omissions or alterations which have been properly recorded with a new billing record).
4. Systems must have the capability to send all billing records electronically to the Spanish Tax administration (AEAT) in a continuous, secure, complete, correct manner and this must be automatic and instantaneous.
5. AEAT will have the right to have full and immediate access to data records during on-site visits as well as requesting and obtaining copies of the billing records.
6. Invoices generated by systems must include:
- An alphanumeric identification code
- A QR code (which needs to meet technical and functional specifications)
- Invoices will require the narrative "Invoice verifiable at the electronic headquarters of the AEAT" or "VERI*FACTU" where the computer system sends all the invoicing records to the AEAT.
7. Registration billing records must include the following content (summary provided not exhaustive):
- Tax identification number and full name of the party required to issue the invoice
- Tax identification number and full name of the receiving party (the customer) and if applicable the EU intra-community VAT number
- Invoice number and, if applicable, the series of the invoice.
- Date of issue of the invoice and the tax point date if different (e.g., an advance payment was received)
- Type of invoice issued – for example if a complete or simplified invoice
- If a corrected invoice this must be indicated, and all rectified invoices identified
- General description of the supplies
- Total amount of the invoice and, if applicable, the amount of the withholding tax to be paid
- Indication of any specific VAT or tax regimes applied to the documented supplies
- Tax base, the tax rate or rates applied, the VAT amount and any additional types of surcharge
- Amount exempt from tax and the reason for exemption
- Amount outside the scope of VAT and reason for it not being subject to tax
- Number and, where appropriate, the series of the previous invoice, the date of issue and part of the fingerprint or "hash" of the registration billing record corresponding to the previous invoice
- Identification code of the computer system used
- Alphanumeric identification code corresponding to the registration billing record generated
- Date, hour, minute and second in which the registration billing record is generated
- All the monetary amounts in the registration billing record must be expressed in Euros - where the invoice has been issued in a currency other than Euros, the corresponding conversion must be made in the register.
8. Systems must add a fingerprint or hash to the registration or cancellation billing records.
9. Digital signatures will be required but won’t be mandatory where the system sends all billing records to AEAT.
10. Invoice recipients (both businesses and consumers) may also voluntarily provide invoice information to AEAT by providing the alphanumeric identification code or by reading the QR code and transmitting the data. This will also allow the customer to verify that the invoice issued to them with the narrative "Invoice verifiable at the AEAT electronic headquarters" or "VERI*FACTU" has been submitted to AEAT by the supplier.
The above draft legislation will also require additional Ministerial Orders that will provide more granular details, especially around:
- Technical and functional specifications and requirements that systems must meet
- Structure, content, detail, format, design and characteristics of the data that must be included in the registration billing record (and cancellation billing record)
- Signature policy specifications and requirements that must be met including in relation to the fingerprint, hash and digital signature
- Minimum content of the responsible statement to be used by software providers
- Technical specifications for the export of billing records to AEAT.
It will be interesting to see this legislation develop with the release of more detailed technical specifications. It is not currently clear how this will interact with the upcoming e-invoicing mandate, current e-invoicing platforms and formats, and the current submission of data under SII in Spain.
Contact an expert at Avalara to discuss how we can assist with e-invoicing and digital reporting or general VAT compliance in Spain.
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