Spain SII: 7 Similar Characteristics of LATAM Electronic Invoicing

Gustavo Jimenez
April 19, 2017

As business-to-government compliance continues expanding across Europe, Spain is following LATAM’s electronic invoicing model as one of the first European countries to adopt automation in efforts to maximize tax collections. Starting July 1, 2017, the “Suministro Inmediato de Información,” known as the SII, will require certain businesses in Spain to electronically submit transactional invoice data for both sales and purchases to the AEAT (Spain’s tax authority).

It is no surprise that European countries are beginning to implement compliance regimes similar to those across Latin America, as the region’s invoicing model has shown significant success in increasing tax revenues. In just the first year of mandated e-invoicing for multinationals, Brazil increased tax collections by $58 billion USD and Mexico increased tax revenues by 34%.

While the SII is different than Latin American electronic invoicing model in some ways, it was created with the same objective: eliminating tax fraud in order to maximize tax collections. Spain is also following Latin America’s timeline for implementation, mandating large companies with revenues greater than 6 million euros and/or those that fall under certain VAT segments to implement e-invoicing first.

Starting July 1, companies impacted by this new mandate will be required to submit a real-time transactional invoice data from their sales and purchase to the AEAT in a standardized XML format. This data, combined with intra-EU operations and investment of goods reporting, will enable tax authorities to triangulate the data. That is, by centralizing the information from both the supplier and buyer in one place – the government’s database – tax authorities can better identify any errors or discrepancies in the reports submitted. For companies impacted in Spain, this means reporting accuracy will now be more critical than ever to defend against an audit.

Some of the characteristics of the SII that parallel the Latin American e-invoicing model are:

  1. Documents must be structured in an XML standard defined by the government.
  2. Transactional invoice data and reports must be submitted to the tax administration in real-time or within a specified time frame.
  3. XML messages are electronically submitted via web services.
  4. The XML must be stamped with “Digital Certificate” to authenticate document.
  5. Errors may be found at the “book level” or “per invoice.”
  6. Validations are both technical and operational in nature.
  7. There is a unique code (CSV) per invoice, which is made up of the tax ID of the issuer, serial number of the invoice and date of issue

As Juan Francisco Redondo Sánchez from the CIAT states, “In short, Spain opts for a different solution; a distinct path from the one undertaken by electronic invoicing models, but that leads us to the same destination: improving voluntary compliance of tax obligations.”

To learn more, watch our recent webinar on-demand: “Spain Launches Real-Time Transactional E-Invoice Reporting” and contact us to see how you can proactively prepare your business for e-invoicing in Spain.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Gustavo Jimenez

Gustavo is Sovos’ Product Marketing Manager for eInvoicing solutions.
Share This Post

Sales & Use Tax United States
August 22, 2019
Benefits of Sales Tax Automation Software and Deployment Options

You operate a lean tax compliance and reporting team. Maybe your company has reduced staff over the past 5-10 years while continuing to grow its business through organic means as well as merger and acquisition.  But now your staff of 10 is down to four or five. What was once a manageable manual process of […]

Tax Information Reporting United States
August 19, 2019
Negative Reporting – What If I Have No Records to Report?

If you have no new unclaimed property records for a particular state this filing year, does that mean you are off the hook? Well, not necessarily.   Most states want you to file with them each year. If you’ve reported in the past, they want to hear from you even in the years when you […]

Tax Information Reporting United States
August 19, 2019
To Aggregate or Not to Aggregate – There Is No Question – Not

Article written By Bill Dadmun, Records and Receipts Manager, State of Virginia   How many of you use the aggregate function when reporting?  Does it make your life easier?  Listen to this scenario and tell me if it sounds familiar.   You get a call from someone that is due $49.95 from a credit balance.  […]

Tax Information Reporting United States
August 19, 2019
Reciprocal Filing – Why You Should Proceed with Extreme Caution

This isn’t the first time I’ve blogged about the dangers of reciprocal filing, but I feel like it is a topic worth covering again for those who may have missed it. Reciprocal or exchange filing means reporting records to a state even though the last known addresses for the records are not in that state. […]

Tax Information Reporting United States
August 19, 2019
Demystifying Codes for Unclaimed Property Compliance

Have you ever been confused about which property code to use for a certain type of property? We have all been there. NAUPA, the National Association of Unclaimed Property Administrators, has a list of standard codes that you can view here starting at the bottom of page 23.   Each code is made up of two alpha […]