The deadline for the supply of the billing records corresponding to the rectifying invoices is the same as that of the invoices issued and, the delay in the obligation to keep the record books through the Immediate Supply of Information, entails an infringement for breach of accounting and registration obligations provided for in the LGT.
Invoices received and issued through the Immediate Information Supply (SII)
An entity that manufactures furniture in kit, performs operations with customers who manage large surfaces. The latter retain quantities in anticipation of future returns, and the amending invoice is only issued when the necessary information is available.
According to the LIVA, the delivery of the good occurs at the time of making available to the acquirer, unless the latter had paid in advance,in which case, the VAT is due at the time of the total or partial collection of the price for the amounts actually received (LIVA art.75.Uno.1º and 75.Dos).
As for the impact of the tax, the entity must issue an invoice to the recipient of the operation at the time of its completion, although, since the recipient is an entrepreneur or professional, the invoices must be issued before the 16th of the month following that in which the accrual occurred (LIVA art.75).
To determine the tax base,when there are discounts for consumption granted after delivery or when operations are resolved for the return of goods, the entity has to modify the tax base, reducing it by:
- the amount of re-useable packagings that have been returned; and
- discounts and bonuses granted after the operation, provided that they have been justified (LIVA art.80.Uno).
In these cases, the issuance of an amending invoiceis required, in which the passed-on fee is rectified or, where appropriate, annulled (RIVA art.24).
However, where the taxable amount is changed as a result of the return of goods or packaging carried out on the occasion of a subsequent supply that has the same consignee,and for the initial operation in which they were delivered an invoice would have been issued, it is not necessary to issue the amending invoice. In this case, the invoice issued for the subsequent supply is subtracted from the amount of the goods or containers and packaging returned, provided that the tax rate is the same, and regardless of whether its result is positive or negative (RIVA art.15.4).
Once the tax base has been modified, the contributions that have been passed on in an improper manner are rectified (LIVA art.89).
In relation to the Immediate Provision of Information (hereinafter, SII), since its entry into force, on 1-7-2017, the taxable persons whose VAT settlement period coincides with the calendar month they are obliged to carry through the Electronic Office of the AEAT, through a web service or, where appropriate, through an electronic form, the following books:
- record book of invoices issued;
- record book of invoices received;
- register of capital goods; and
- logbook of certain intra-Community transactions.
Also, the rest of the taxable persons vat may use the SII optionally, by submitting a census return in the month of November prior to the beginning of the year in which it is to take effect or, at the time of submitting the declaration of commencement of activity, for those who start their activities in the current year (RIVA art.68 bis).
With regard to the time limits for the submission of registrations and, once the SII has begun, in order to meet needs that have arisen in practice, the initial wording of RIVA art.69 bis has been modified:
(a) Invoices issued: four calendar days from the date of issue of the invoice, except in the case of invoices issued by the consignee or by a third party, in which case this period is eight calendar days. In both cases the supply must be made before the 16th day of the month following that in which the accrual of the tax would have occurred. For non-subject transactions for which an invoice is to be issued, the latter period is determined by reference to the date on which the transaction was carried out.
(b) Invoices received: four calendar days from the date on which the accounting record of the invoice or document stating the quota settled by customs in the case of imports takes place and, in any event, before the 16th day of the month following the settlement period in which the transactions were included.
c)Certain intra-Community transactions(dispatch or receipt of movable tangible property for temporary use or for the carrying out of expert reports, repairs and work on it): four calendar days from the time of commencement of dispatch or transport or, where appropriate, from the time of receipt of the goods.
d) Rectifying invoicesissued and received: four calendar days from the date of issue or the accounting record of the invoice, respectively. If the correction results in an increase in the amount of the contributions initially deducted, the time limit is that of paragraph b.
All of them exclude Saturdays, Sundays and national holidays.
Finally, in relation to tax violations that may arise in this matter, the LGT provides among the formal tax obligations the keeping of the registration books by telematic means, classifying as an infraction the delay in the obligation to keep the record books through the E-Office of the Tax Agency through the provision of the billing records (LGT art.29 and 200 , respectively).
The DGT has issued several enquiries on the application of the Immediate Supply of Information to:
- IIC and Pension Funds (DGT CV 21-3-18 V0794-18);
- international air passenger transport (DGT CV 21-3-18 V0793-18);
- acquisition of a business unit (DGT CV 18-4-18 V1002-18); and
- provision of services over the Internet (DGT CV 30-4-18 V1125-18).
Specialties in the Immediate Supply of Information
– The electronic supply of the billing records can be made by a third party acting on their behalf,which can be accredited by means of the standard document approved by the Resol AEAT 13-3-17. This document does not confer the status of representative to intervene in other acts or to receive communications from the Administration on behalf of the taxable person.
– Where several establishments are available in TIVA, a single register shall be maintained in which the operations of all establishments situated in that territory shall be recorded.
– Companies carrying out exempt activities must also complete a record book with all invoices received.
– Rectifying invoicesmust also be entered in the register of invoices issued. Documents relating to transactions in which there is an investment by the taxable person must be entered in the proper separation.
– With effect from July 1, 2018,it has been established that taxable persons who are obliged to keep the record books in the tax agency’s electronic office on a date other than the first day of the year must send the billing records prior to their inclusion. The deadline to do so is December 31 of the year in which they have caused registration in the Immediate Supply of Information (OM HFP/417/2017 disp.adic.2ª redacc OM HFP/187/2018).
In addition, a free content field called «external reference’; an identifier that specifies those invoices with amounts exceeding a threshold of 100,000 euros and two specific marks that allow to specify if the simplified invoice collects the identification of the recipient for the purposes of complying with the provisions of Rgto Fac art.7.2 and 3, or if the invoice issued does not contain the identification of the recipient (Rgto fac art. 6.1.d)
– Yes it was not possible for technical reasons to make in time the provision of the information required in the Immediate Supply of Information, or this could not be completed because it was not possible to consult the records previously submitted, it may be done in the four calendar days following the end of the referral period (OM HAP/417/2017 art.7.3).
– The information on the collections and payments of taxable persons covered by the cash criterion regime who choose to use the Immediate Supply of Information, will be sent within four calendar days,from their collection or payment.
– Since July 1, 2017, taxable persons covered by this system are exempt from the presentation of form 390,as well as form 340 (being obliged to do so only taxable persons of the IGIC registered in the REDEME.
Avoid delays in the Immediate Provision of Information
If your company is obliged to submit its VAT registration books through the Immediate Supply of Information, respect the maximum deadlines you have to send the information and avoid the sanctions applicable in these cases.
Meet referral deadlines
Issued and received: If your company submits its invoice registration books through the Immediate Supply of Information (SII), in 2018 the deadline to send the corresponding data is four days (in 2017 it was eight), not counting Saturdays, Sundays or national holidays. specifically:
- You must provide the data on invoices issued within four days of their issuance, and always before the 16th day of the month following the month of sale.
- Regarding the invoices received, you must provide the data within four days of posting, and always before the 16th day of the month following the settlement period in which the transactions must be included.
Capital goods: If your company is in proportion, you must also provide the data of the Register of investment goods (assets of more than 3,005.06 euros that can be used for more than one year), in this case until January 30 of the following year.
The information included in this book is additional to that of the book of invoices received, so that these acquisitions are recorded in both books.
Intra-Community operations: Finally, you must provide the data in the intra-Community transaction book within four days of the start of the transport or, where appropriate, from the time of receipt of the goods. But beware, because the usual intra-Community deliveries and acquisitions must be recorded in the invoice books issued and received. The operations in the register of intra-Community transactions are only as follows:
- The sending or receipt of goods for the realization of expert reports or work carried out on movable tangible property.
- The transfer of assets from the same company from one EU country to another.
And avoid sanctions
Penalty for delay: Try to respect the referral deadlines. Otherwise, the Treasury can impose sanctions in the following terms (which have been approved as of 2018):
- In general, the penalty is 0.5% of the amount of invoices reported late. This amount includes VAT, as well as the equivalence surcharge and compensations of the Agriculture, Livestock and Fisheries Regime (REAGP) that are applicable.
- The minimum penalty is 300 euros and the maximum is 6,000 euros per quarter. Both the minimum and the maximum must be determined taking into account all the infringements committed in each calendar quarter.
- In the case of the register of capital goods and intra-Community transactions, the penalty is EUR 150 per registration.
Do not carry: Given that some entrepreneurs see the Immediate Provision of Information as an excessive burden and that such penalties do not appear to be high (especially if the volume of transactions is high), they may consider not submitting the books electronically and bearing that cost.
Be careful and don’t play it. Such sanctions are only applicable if you comply with the Immediate Provision of Information. If you do not, the penalties are higher: 1% of the turnover, with a minimum of 600 euros and without a maximum limit.
If your company is late in providing data on invoices issued or received, the Treasury may impose a penalty of 0.5% of the amount of such invoices, with a minimum of 300 euros and a maximum of 6,000 per quarter.