B Law & Tax
13 December 2023

Tax advisor: Regulation for the Modernization of Invoicing Systems in Spain

The regulation, approved by Royal Decree 1007/2023 and published in the Official State Gazette on December 6, establishes requirements for computer systems in invoicing processes. Its main purpose is to standardize the formats of invoicing records, in compliance with Law 11/2021 against tax fraud. It aims to ensure the uniformity of invoicing systems, prevent the manipulation of invoices, and promote the digitization of small and medium-sized enterprises, microenterprises, and freelancers to enhance tax compliance and combat tax evasion.

 

 

General Considerations on the Applicability of the Regulation:

Object:

Article 1 of Royal Decree 1007/2023 establishes requirements for computer systems in the invoicing processes of entrepreneurs and professionals. It aims to comply with Article 29.2.j) of the LGT, ensuring the integrity of invoicing records. It defines a computer system as hardware and software for issuing invoices, covering data entry, conservation, and processing.

 

Territorial Scope:

The regulation applies throughout the Spanish territory, with exceptions for the Foral territories (Basque Country and Navarre) and specific regulations for the Canary Islands, Ceuta, and Melilla. For the Foral territories, it applies to taxpayers with fiscal residence in the common territory.

 

Subjective Scope of Application:

The new computerized invoicing systems will apply to taxpayers of the corporate income tax (excluding exempt entities), personal income tax who engage in economic activities, non-resident income tax with a permanent establishment, entities under the income attribution regime, and producers and marketers of computerized invoicing systems. Taxpayers using electronic records through the AEAT Electronic Headquarters via the SII are excluded.

 

Objective Scope of Application:

The new computerized invoicing systems will not apply to transactions under certain special tax regimes, such as agriculture, livestock, fishing, equivalent surcharge, simplified VAT regime, and others authorized by the AEAT. Operations related to electricity, billed by the National Energy Commission, and operations in permanent establishments abroad are also excluded. Exceptions can be requested with authorization from the Department of Financial and Tax Inspection of the AEAT. The new obligations can be fulfilled by the recipient or a third party with the same status for invoicing purposes.

 

Requirements for Invoicing Computer Systems

Required Computer Resources:

Taxpayers can fulfill the new obligations through various options:

Options to fulfill new invoicing obligations:

  1. Certified In-House System: Taxpayers can use their own computer system certified by their developer, complying with standards and regulations, including data protection.
  2. Shared Use: Sharing a computer system is allowed, provided each taxpayer maintains separate records and complies with the requirements individually.
  3. Tax Application: The computer application provided by the Tax Administration can be used.

 

Requirements for invoicing computer systems:

Computer systems must ensure the integrity, conservation, and accessibility of invoicing records, securely and automatically submitting them to the tax administration. They must maintain an event log that automatically captures interactions and events. It is crucial to separate access to tax information from confidential information, allowing the administration direct access to invoicing and event information.

 

Invoicing Records:

Computer systems must automatically generate an invoicing record simultaneously or immediately before issuing the invoice, including minimal information such as the taxpayer identification number, name or corporate name of the issuer, invoice number and series, relevant dates, invoice type, description of operations, and total amount. Additionally, the generation of an annulment invoicing record is required in case of issuing an erroneous invoice.

Additionally, the obligation to generate a hash or electronic signature for invoicing records is introduced.

 

Alternatives for Generating Verifiable Issuanc

An option is established for taxpayers using invoicing computer systems to voluntarily comply with technical specifications for the immediate and secure submission of all invoicing records to the AEAT. These systems, referred to as “Verifiable Invoice Issuing Systems” or “VERI*FACTU Systems,” involve the continuous, secure, accurate, integral, automatic, consecutive, immediate, and reliable electronic submission of invoicing records to the tax authority. In this case, the electronic signature of the records is not required, and calculating the hash is sufficient. The choice of this system is considered initiated when systematically submitting records to the electronic headquarters of the AEAT and extends at least until the end of the natural year of the first effective submission of invoicing records.

 

 

Option for the Recipient to Send Details

The recipient of the invoice (whether a business or a final consumer) is allowed to voluntarily send certain invoice details to the AEAT, providing the data included in the invoice’s QR code, without this information submission being considered a public complaint.

 

 

Integration of Invoicing Records into Ledger Books

There is the possibility of integrating, before July 1, 2025, the invoicing records generated and sent to the AEAT through “Verifiable Invoice Issuing Systems” into the content of the ledger book of issued invoices as regulated in the VAT Regulation. Likewise, this option could be developed for sales and income ledger books, according to Article 68 of the Personal Income Tax Regulation.

 

 

Entry into Force and Effects of the Regulation

The Regulation is effective from December 7, 2023, and taxpayers must have computer systems adapted to the requirements by July 1, 2025. A period of 9 months is established, from the approval of the Ministerial Order detailing the technical aspects of the registry, for producers and marketers of invoicing computer systems to have them available in the market.

 

 

 

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