Tax management is being automated with a double objective: to optimize resources and combat tax fraud. The
Immediate Supply of Information or SII of VAT
in real time, which came into force on July 1, 2017, goes in the direction of offering a better service.
In today’s article we explain the operation of this system, how it affects Spanish companies according to the size or sector of activity and the novelties to be applied, as of July 1, 2018.
What is the Immediate Supply of Information (SII) of VAT?
As we already advanced a few months ago in this post,the new Immediate Supply of VAT Information is a system interconnected with the Tax Agency to carry out the registration operations of this tax, approved by Royal Decree 596/2016.
The main novelty is that the management of the company interacts by telematic means, sending the information of the invoices received and issued through XML message.
Therefore, telematic means are used to record the operations,which results in greater control by both parties, not only by the Administration.
It is important to indicate that there is an element of self-regulation and, if the billing forecast in 2019 is close to the limit, it is advisable that you opt for this system to avoid problems.
There are companies that are obliged to benefit from this system and others that can opt for it.
In any case, those companies that want to implement it have to notify the Tax Agency during the month of November of the previous year.
Procedures to be carried out in the VAT SII
To carry out a good management of this tax, you have to know the deadlines for sending the documentation, as well as the obligation for your company depending on the size and the news from July 1, 2018.
Deadlines for sending documentation
As a general rule, delivery times are 4 calendar days (without counting Saturdays, Sundays and days declared national holidays):
- For invoices issued it is 4 calendar days.
- For invoices received it is 4 calendar days.
- For intra-community operations of 4 calendar days.
- Information on capital goods must be provided within the submission period of the last settlement period of the year.
As a general principle, it is advisable to use the shortest filing deadlines so that you do not have last-minute problems.
Which companies are obliged to adapt to the VAT SII?
There are criteria for invoicing and frequency of presentation of the settlements that determine the obligation to benefit or not to the VAT SII.
Companies with a turnover of more than 6 million eurosare obliged to benefit from the VAT SII.
In practice, those companies of certain sizes or that have a system that advises this type of invoice settlement will be the ones who have to do them.
SMEs are not obliged to implement the new Immediate Supply of VAT Information and can voluntarily benefit, if they wish, from this system.
In general, and unless they have a special interest in being governed by the new system, they can continue to send their quarterly VAT settlements. The clearest example of this case is if you are self-employed or microenterprise.
News on the VAT SII from 1 July 2018
As of July 1, 2018, some new features that you have to introduce in the Immediate Supply of VAT Information are incorporated, although both systems will coexist during a transition period.
It should be noted,however, that there are no major changes in substance, so the transition for those who are already following this system should not be complicated.
The SII (Immediate Supply of Information) of VAT
is a system that allows you to better manage the tax.
Although the implementation of the system is not especially difficult, it does require computer and tax knowledge and specialized personnel to send the documentation in a timely manner.
Advising you in a company specialized in
tax consulting such as AYCE Laborytax
is a good alternative to avoid problems in the medium term.