Spain Invoice Reporting System - SII
The Immediate Supply of Information (SII) is a VAT data reporting system introduced by the Spanish Tax Agency (La Agencia Estatal de Administración Tributaria [agencia tributaria or AEAT]) which requires taxpayers to electronically/digitally report billing records to the AEAT system within four days of issuing invoices. SII is mandatory for large businesses, VAT groups, and those registered with REDEME for monthly VAT return registry, and can be voluntarily adopted by other taxpayers in Spain.
In 2017, Spain became one of the initial EU nations to embrace the Continuous Transaction Control (CTC) approach by mandating the reporting of near real-time invoice data via the so-called The Immediate Supply of Information (SII) system . The implementation of this requirement is enhancing tax compliance by streamlining refunds, ensuring the accuracy of data for refund transactions, conducting more effective audits, and combating VAT fraud.
The SII system operates by electronically and promptly submitting all invoice records to the AEAT’s system, introducing a modern VAT accounting process. To comply with the Immediate Supply of Information (SII) system, the taxpayer is required to transmit billing data from VAT books to the tax agency electronically within four days of issuing invoices, either through web services based on exchanging XML messages or by completing an online form, if applicable.
As of January 2021, a new format for billing records with additional tax-related information will become mandatory. The tax authority AEAT in Spain will introduce a new invoice book for stock movements by implementing quick fixes simplification, along with new data checks in both incoming and outgoing invoices books, including three new fields in the incoming invoices book.
It should be noted that the taxpayers are not obligated to submit the actual bills; instead, they need to send the invoice record fields mentioned in the ministerial order. These fields will be used to configure various record books both practically and in real-time.
When it comes to mandatory usage of SII, as mentioned above, as of 2017, the implementation of SII is obligatory for taxpayers who are liable to pay VAT on a monthly basis. This includes large businesses that have a turnover of more than 6 million Euros, VAT groups, and those who are registered with REDEME (the monthly VAT return registry). However, taxpayers who are not obligated could choose to voluntarily participate in SII.
How can SNI help you?
SNI’s Spain SII solution is obtained the necessary information from the financial data in the customer's ERP system and converted into the desired XML file as specified in the regulation. Within the specified time, the generated XML file is sent to AEAT.
