From July 2017, the new features of the SII (Immediate Supply of Information) will be applied, and the invoice registration books will have to be submitted electronically.

It is vital to be up to date to avoid penalties and to comply without setbacks. Ignorance does not exempt you from doing things according to the law.

Who must submit the SII?

Not all companies are required to submit the SII. You will only have to do so if your company declares VAT monthly. Remember that there are two cases in which you are required to do so:

  • If you invoice more than 6,010,121.04 euros per year.
  • If the company is registered in the group regime or the REDEME

This change in the SII comes with important new features, some of which we find interesting to highlight.

News in the SII

Three main changes have been made to the presentation of the SII:

  • Data on invoices issued must be submitted within the following four days, although in 2017, this was extended to eight days after the issue. This must be done before the 16th of the month following the sale.
  • Data on invoices received: this is the same case as the previous one. It is important to remember that when calculating the four days, holidays and weekends must not be counted.
  • Reporting operations prior to June 30: starting from January 1. Fortunately, the deadline is extended until December 31.

It is vital to avoid taking these new developments as optional or recommended since sanctions are contemplated for those who skip the obligation to present the SII.

Sanctions foreseen

For example, if a company decides not to deliver or present the information late, the Treasury can impose a penalty of 0.5% of the undeclared invoices.

The quarterly minimum is €300, and the maximum is €6000. You can imagine that not reporting can harm your company, so do not play with the SII and present the information entirely and on time.

Fortunately, sanctions are easy to avoid; it is only a matter of complying with current legislation. In addition, the new developments also have their advantages.

What are the advantages?

Although it may seem that everything will be inconvenient, it turns out that from the first moment that the new system is used, companies will begin to enjoy the following advantages:

Due to the new system, your company will not have to continue presenting the following forms:

  • Form 347 (annual declaration of operations to third parties)
  • Form 340 (if your company is registered with REDEME): you will have to continue presenting this form until June 2017.

The other great advantage is that you will be able to present VAT declarations until the 30th of each month (until now, it was the 20th). In February, you will have to continue presenting it before the end of the month (since you only have 28 days or 29 in leap years).

Final Tips

Try to choose a few days a month to account for all invoices. For example, every ten days is a good way. Do it on the 10th, 20th, and end of each month.

Remember that the deadline to report is only four days, so you must maintain a system that helps you stay up to date.

Follow a monthly schedule to avoid making mistakes that result in penalties.

Is this clearer for you? Do you feel prepared for the SII’s new features?

Remember that the SII’s new features come into force in July 2017, so you have some time to adapt to the latest legal situation.

If you need to know more, you can consult our Tax Advice service.

For any questions about the SII application, contact our tax advisors.

SEND ENQUIRY