Electronic VAT management will be mandatory in July 2017

The new year has brought new developments in the electronic management of VAT, which will be mandatory from July 2017.

The Council of Ministers approved the start of the Immediate Information Supply System (SII) a few weeks ago, but it will not come into force until the date indicated above.

As of July 2017, more than 62,000 companies are required to manage and declare VAT tax electronically. There is no possibility of doing it any other way.

What is electronic VAT management

Electronic VAT management is established to try to fight against tax fraud. It will be used to keep track of the VAT of the companies that declare it.

VAT operations from July 2017 will be declared in real time. In addition, all companies that use the SII will have to send detailed invoices to the Treasury within no more than four calendar days.

This change will undoubtedly be important in facing the challenges of the new information age, although many find it difficult to adapt to the changes.

When you send the information, the VAT books are automatically generated. That is why book management will also be electronic.

Who should submit it

You must remember that this change only affects companies designated by the Tax Agency. Most are large companies, but smaller ones are also included.

As summary, companies that meet the following requirements must use this new information system:

• Invoicing more than 6,010,121.04 euros in one year
• Registered in the monthly refund regime (REDEME)
• Corporate groups for VAT purposes

Now, the Tax Agency allows other businesses to voluntarily use this new initiative. That is, companies that want will be able to join this new type of electronic management. Whether you are a small SME or a larger one that is not obliged to do so, you can submit VAT electronically.

How VAT is managed electronically

The new system will be implemented in the following way: Companies obliged to do so will have to send details of their invoices to the Treasury immediately.

The information must be sent electronically and in an XML format (to guarantee the security of the data sent).

For companies with a low volume of operations, it will be carried out through a website. For medium and large companies, automation is possible.

The data will be used to automatically create record books, as is currently done with the Income Tax return.

Great news is that from now on, companies that join the SII will not have to present the following models:

• Model 347
• Model 340
• Model 390

Obviously, it is a great advance, and we are convinced that the right decision has been made.

Conclusions

The technological challenge posed by this new way of electronically managing VAT seems notable to us. We applaud the decision of the Tax Agency to try to modernize.

Surely at first a period of adaptation will be necessary, but we are convinced that the right decision is being made.

We are concerned about a possible increase in delinquencies due to the change, but it is a small price to pay if the entire process is to be expedited.