Spain requires real-time submissions of VAT information

by DLA Piper

DLA Piper

Large enterprises operating in Spain are coming to terms with the latest requirements to file their VAT information on a real-time basis through the new online system set up by the Spanish tax authorities.

According to the information provided by the Spanish tax authorities, 63,000 taxpayers will be required to use the new system to file their VAT returns. It is expected that approximately 80 percent of the total business VAT invoicing in Spain will be filed through the new system from July 1, 2017. In addition, taxpayers can adopt the new system on a voluntary basis.

Key features

The new online system, known as Suministro Inmediato de Información (SII), was established by the Spanish tax authorities to collect, process and analyse VAT information from large taxpayers. From July 1, those taxpayers obliged to provide monthly VAT filings (i.e., large enterprises with a turnover of more than €6 million, VAT groups and taxpayers registered in the monthly VAT refund system), are required to submit their invoicing details in real time through the webpage of the tax authorities.

This new system requires taxpayers to submit their invoicing data through XML messages within a four-day period (an extended eight-day period is provided for the second semester of 2017). The submitted data will automatically upload to the taxpayers' various VAT forms on that website. Taxpayers who adopt this system will be released from manual filing of existing tax forms − including forms 347 (transactions with third parties), 340 (VAT books) and 390 (VAT annual summary).

Penalties for non-compliance

Delay in submitting invoicing data will result in fines of 0.5 percent of the amount of each invoice to be recorded, with a minimum fine of €300 and a maximum of €6,000, per quarter.

Mistakes and failure to submit invoicing details will result in penalties of 1 percent of the amount of each invoice to be recorded, with a minimum fine of €150 and a maximum of €6,000.

In cases of total failure to comply with the new system, the sanction will be 1 percent of the taxpayer's turnover, with a minimum amount of 600.

Key takeaways

The system, which was established through Royal Decree 596/2016, of 2 December, will completely change the current VAT formal requirements for large taxpayers and those who adopt it voluntarily. SII will allow the Spanish tax authorities to analyse VAT information immediately and on a real-time basis before the end of the filing deadline of each VAT return. The tax authorities will have access to additional invoicing information from each taxpayer through SII, and this is expected to reduce the number of information requests from the tax authorities. On the other hand, the system is likely to free up some resources for tax audits and may accelerate audit procedures in case of information mismatches.

Most taxpayers who are required to use the new system will probably need assistance to capture and supply the correct information requested by tax authorities in SII. IT solutions can be and have been developed to comply with this new system, but the tax risks are linked not so much with the technology but with the accuracy of the tax information captured and supplied by taxpayers. Where the IT solutions are provided by new players, it is critical for these new players as well as the taxpayers to analyse all the relevant invoices before the information is captured by the system.

It is advisable also for taxpayers to cross-check their information with data provided to the tax authorities by their clients and suppliers (especially if such information is also included in the SII). Any mismatches should be identified and amended as appropriate before the information is submitted in the new system. We expect that the tax authorities will be able to perform such cross-checks and identify mismatches relatively easily in the new system. When mismatches left in the submitted information are subsequently identified by tax authorities, taxpayers may face additional audits and queries that could be time consuming and costly.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© DLA Piper | Attorney Advertising

Written by:

DLA Piper

DLA Piper on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.