In early December 2016, the Spanish Government took a significant step by enacting Royal Decree 596/2016. The decree aimed to modernise, enhance, and encourage electronic means in managing Value Added Tax (VAT), known as the Suministro Inmediato de Información or SII. From 1 July 2017, Spain became the first European country, post-Latin America, to implement near-real-time VAT reporting. This move was a technological advancement and a strategic step towards eradicating tax fraud and boosting tax collections. Whilst some European Member States introduced periodic SAF-T requirements, Spain stood out by demanding almost real-time information.
Who is Affected?
Starting 1 July 2017, SII is mandatory for businesses, whether resident or not, to submit monthly VAT returns. Real-time transactional invoice data is obligatory for the following:
- large entrepreneurs with a Spanish turnover exceeding €6,000,000 for VAT,
- businesses using the REDEME monthly refund scheme, and
- those within VAT groups in Spain.
Deadlines
Entities subject to SII must submit transactional invoice data, for both sales and purchases, in XML format meeting authority requirements. This data should be directly transmitted to the Spanish tax authorities’ website within four days from issuance or accounting, excluding Saturdays, Sundays, and national holidays. Information on investment goods should accompany the last VAT return of the year (by 30 January of the following year for goods acquired). Adhering to these deadlines is required to ensure compliance with the new VAT reporting requirements.
For intra-community sales, organisations must electronically provide data within four days from the start of transportation; for intra-community acquisitions, the deadline is four calendar days from receiving the goods. Notably, between 1 July and 31 December 2017, there is an extended submission deadline of eight days instead of four. Whilst SII is compulsory from 1 July 2017, VAT ledgers for the first semester of 2017 must be submitted before 1 January 2018 unless the taxpayer filed Modelo 340.
Generate Spanish SII XML with Global Tax API
Global Tax API enables users to generate and prepare their XML file for Spanish SII return submission. This intuitive service only requires the entry of a handful of details, following which it produces valid XML data.
To complete the submission of your Spanish SII submission, please visit the official website of the Spanish tax authorities. There, you can proceed to upload and submit the XML file.