In the fast-paced and ever-changing world of electronic invoicing, the regulations governing it are also constantly evolving. For any company, keeping up to date with tax laws is essential. To help you do this, in the following lines we will delve into what the electronic invoicing regulations in Spain and what they may become in the near future. We will find out who is required to make the leap to electronic invoicing and analyze the current and future situation in the country. In addition, we will explore the implications for those who do not comply with the regulations. Finally, we will highlight the keys to surviving in this new tax paradigm.
What law regulates invoices in Spain?
Currently, the regulations for electronic invoices in Spain are mainly based on two regulations:
–– Law 10/2010, of April 28, on the Prevention of Money Laundering and Terrorist Financing, which establishes the obligation to keep invoices and related documents for a period of 10 years.
– Royal Decree 1619/2012, of November 30, approving the technical regulations on invoicing that regulate the obligations of all Spanish companies.
However, new invoicing regulations are expected to be approved in Spain in 2023 or 2024.
Specifically, this technical regulation on electronic invoicing currently in force is based on European regulations. It sets out the requirements and technical specifications that electronic invoices must meet in order to be valid from a tax perspective in Spain. These requirements cover aspects such as:
– The electronic signature
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file format
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transmission methods
– Conservation of e-invoices
In short, you must bear in mind, on the one hand, that the invoicing regulations also consist of more than one legal rule. On the other hand, regulations may change over time. That is why it is always crucial that you stay up to date with the latest legislative updates related to electronic invoicing.
Who is required to invoice electronically in 2023?
The fact is that, due to the growing importance of the online world, there is an increasing focus on all the legal aspects that may arise in this new digital landscape. This also applies to electronic invoicing, of course.
Likewise, despite the many changes that have taken place (and those that will take place in the midst of the digital transformation of companies), there are already regulations governing online invoices. Not only that, but they seek to promote and implement them throughout the business world.
In this regard, in accordance with current online invoicing regulations, everything points to the obligation to invoice electronically being extended in Spain throughout 2023 and 2024, affecting a wider group of taxpayers.
According to current regulations, the following entities are currently required to issue electronic invoices in Spain:
- Large companies: Organizations with an annual turnover of more than €6 million are required to issue electronic invoices. This has been the case since 2015.
- Companies that work with the Public Administration: Companies that contract in any way with the public sector are also subject to the obligation to invoice electronically from 2015 onwards. Furthermore, this obligation is independent of their size.
- Public sector suppliers: All organizations that are related to the public sector in any other way must also issue electronic invoices.
- Companies covered by the VAT group regime: Companies that are part of a VAT group must issue electronic invoices since 2018.
- Organizations operating in the Immediate Information Supply (SII): This regime is mandatory for companies with annual turnover exceeding €6 million.
In any case, we would like to remind you that tax obligations may change over time due to regulatory updates. Therefore, it is always a good idea to consult a tax advisor about your situationand stay up to date with the latest regulations to ensure you comply with the requirements in force.
And what is the current situation regarding electronic invoicing in Spain?
Based on these obligations, electronic invoicing in Spain has become well established. However, it is something that is constantly evolving, especially due to the promotion of it by the administrations. And, besides, not only because it is mandatory, but also because of its advantages it is also rapidly becoming established in numerous industries and sectors.
Most large companies and those operating in the public sector were already using electronic invoicing before it became mandatory with the SII (although the official implementation of this point has been delayed). In addition, many smaller companies have voluntarily opted for this method due to its benefits in terms of efficiency and cost savings.
In turn, the government has recently implemented measures to promote the adoption of electronic invoicing. For example, the simplification of procedures, interoperability between systems, and other new developments such as those described in the so-called Create and Grow Law. In addition, deadlines have been set for its use in different sectors and for different types of companies, as mentioned above.
And what will happen to those who do not comply with the electronic invoicing regulations?
All this momentum for electronic invoicing in Spain can be extrapolated to the rest of Europe and the other major world powers. In fact, it seems that there is no turning back, so adapting will be necessary for any type of organization.
In this regard, you should be aware that failure to comply with the electronic invoicing regulations in force already has consequences. Without going any further, in Spain it can lead to various penalties, depending on the specific situation of each company. Some of the most likely are:
Financial penalties
Companies that do not comply with electronic invoicing obligations may face financial penalties imposed by the Tax Administration. These fines vary depending on the severity of the offense and the invoices affected.
Invalidity of invoices
If one of your invoices does not meet the electronic invoicing requirements established by the regulations, it may be considered invalid from a tax perspective. This could cause problems when deducting VAT or other taxes, which would increase the tax burden on your company.
Difficulties in commercial transactions
Failure to comply with electronic invoicing regulations could limit your company's ability to conduct business transactions with other companies that require electronic invoices as part of their business policies. Therefore, it will limit you in the commercial aspect of your business.
Breach of contracts with the Public Administration
If you have contracts with the Public Administration and you do not comply with the electronic invoicing obligations that will be required of you, you could be in breach of those contracts. Consequently, you could face various legal and financial consequences.
To avoid all these problems, it is essential stay up to date on the latest legal updates and comply with electronic invoicing obligations to avoid legal and financial problems.
Key points of the regulations where easyap can help you
In short, to comply with electronic invoicing regulations in Spain, there are several key points you need to bear in mind. In addition, easyap software is an invaluable tool to guide you through this process. Here we explain these key points and how easyap can help you with them:
- Invoice format and content. Ensure that your electronic invoices comply with the format and content required by regulations. With the easyap solution, you can automatically generate your electronic invoices in compliance with these requirements, avoiding errors and ensuring their validity.
- Electronic signature. Electronic signatures are essential for validating electronic invoices. Our software can incorporate electronic signature functions, ensuring the authenticity and integrity of invoices.
- Retention and storage. You must retain electronic invoices for a specific period. With our tool, you can manage and store your electronic invoices in accordance with legal requirements.
- Secure transmission. The transmission of electronic invoices must be secure, and easyap software offers you secure transmission methods.
- Adaptation to regulatory changes. Tax regulations change over time, but at easyap we stay up to date with the latest regulations and quickly adapt to new tax obligations.
- Efficiency and automation. Our software can automate much of the electronic invoicing process, saving time and reducing manual errors. This allows you to focus on your business while ensuring compliance with regulations.
- Auditing and tracking: Finally, easyap offers auditing and tracking features that allow you to track and monitor all electronic invoicing transactions, making it easier for you to file reports and comply with tax regulations.
In short, easyap can be a great partner in helping you comply with electronic invoicing regulations in Spain. It simplifies the entire process, reduces the risk of errors, and ensures regulatory compliance.. This allows you to focus on your business and avoid potential penalties and tax issues. Would you like us to show you how?
