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Spain passes legislation moving towards mandatory B2B e-invoicing

  • Dec 9, 2021 | Alex Baulf

Spain passes legislation moving towards mandatory B2B e-invoicing

The Spanish Government has approved the draft Crea y Crece law which includes a requirement for businesses to issue electronic invoices for all B2B transactions.

Currently, the Spanish tax authority (AEAT) already receives transactional information from certain taxpayers through the Suministro Inmediato de Información (SII) up to four working days from the issue or receipt of an invoice. However, the move to compulsory e-invoicing would mean that a wider set of taxpayers would be required to submit transactional data and this would be more frequent i.e. in real time. While we are still awaiting details of the new e-invoicing regulations, it is likely that the model will follow established pre-clearance models like Italy’s SDI platform. This would allow the AEAT to validate invoices before they are approved and released to the customer.  Spain's VAT Gap in 2019 was estimated to be EUR 5.8 billion (6.9%) and this move to compulsory e-invoicing will partly be driven by a goal to reduce this gap and maximise tax collection, as well as part of a wider national digital transformation initiative.

Spain already has two e-invoicing platforms – FACe which is designed for B2G e-invoicing and is mandatory for the central government and optional for regional and local governments. FACe enables the submission and tracking of e-invoices sent to thousands of public administrations connected to the system. A secondary e-invoicing platform FACeB2B has been in place since June 2018, allowing B2B electronic invoicing and this uses the same format and interfaces already in place for B2G invoicing. It will be interesting to see if Spain simply looks to scale these existing platforms for wider use. 

It is possible that there will be a phased introduction with the e-invoicing measures coming into force for all companies three years after the official publication of the new law – which could mean as late as 2026. However, for companies with a turnover of EUR 8m or more, this should apply a year after the publication, which could mean 2024. If the legislation is rushed through Parliament, it is possible these dates could be brought forward 12 months.

Need a fiscal representative in Spain?

Non-EU businesses selling in Spain will need to appoint a fiscal representative alongside completing VAT registration and returns.
Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.
Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

Need help with your Spanish VAT compliance?

Researching Spanish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

Alex Baulf as Senior Director, Global Indirect Tax, Avalara
Senior Director, Global Indirect Tax
Alex Baulf
Alex Baulf as Senior Director, Global Indirect Tax, Avalara
Senior Director, Global Indirect Tax Alex Baulf
Alex leads on global indirect tax at Avalara, leading on engagement with policy and business leaders to develop a tax and compliance environment that will streamline and accelerate commerce for the overall growth of the economy. With over 16 years experience in global VAT and GST and international indirect tax consultancy, Alex has specialised in analysing changing VAT requirements and advising on impact assessment and change management across processes, data and technology.
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