Anti-Fraud Law: how it affects your invoicing and your management software

There is a saying that where there is a law, there is a loophole. Given that everything digital is new and there is still much to be researched and developed, it could be said that, in some cases, this is strictly true of the new online environment in which we operate. However, this is not the case with taxation. New technologies offer extremely useful tools for controlling certain aspects. For example, taxation and the accounting and tax processes of companies. In fact, in Spain, regulations already take into account that invoicing processes are digital. The best example of this is the Anti-Fraud Law, which has been in force since 2021.  

Today, on the Easyap blog, a space designed to inform and connect with managers and accountants from various businesses, we talk about the Anti-Fraud Law in Spain. This regulation affects all types of companies and you should be well aware of it (if you are not already) when it comes to your company's accounting and taxation. What does it consist of, what penalties can be incurred for non-compliance, what requirements must your management software meet in order to comply with it... 

What is the Spanish anti-fraud law?

Let's define what the anti-fraud law is. And let's do so from a more technical point of view. To begin with, at the legal level, what is known as the anti-fraud law is called Law 11/2021, after the date on which it came into force. Likewise, the Official State Gazette (BOE) states that this regulation establishes "rules against tax avoidance practices that directly affect the functioning of the internal market, modifying various tax regulations." 

Due to the complexity that legal texts such as this one sometimes present, at Easyap we have our own view of what anti-fraud law is and what it regulates: 

• This is a national regulation aligned with European policies that requires companies to use a single accounting software program that facilitates tax traceability and business taxation. 

So, under this law, self-employed workers and companies are required to work with accounting and invoicing software that ensure data integrity and preservation, as well as traceability and unalterability of the operations they carry out. 

What can you do now to comply with the regulations?

If you still have questions about what the anti-fraud law is and how to adapt your business to it, it is best to act as soon as possible. Assess whether your current software meets the established requirements and, if not, look for a technological solution that guarantees traceability, security, and integrity in all your accounting processes. At Easyap, we help you implement an efficient, agile solution that is fully aligned with current legal requirements, so you can focus on what really matters: growing your business while complying with regulations from the outset.

What are the objectives of the law against tax fraud?

Therefore, the anti-fraud law, although not new, has been recently approved with a series of significant amendments. These changes aim to combat tax fraud, but with a focus on the new digital landscape in which we now find ourselves. Governments want to combat tax fraud by leveraging the advantages offered by the online world and accounting management software such as that developed by Easyap. 

Following this line of thinking, we could say that the law against tax fraud passed in Spain last July has two main objectives: 

1. Prevent the manipulation of accounting and tax data that impact the taxation of any business. 
2. Eliminate the existence of opaque financial structures and slush funds with records of transactions carried out and not declared.

To achieve these two objectives, Law 11/2021 prohibits what is known as dual-use software, which are computer systems that allow the manipulation of data and accounting records. Thus, the obligations that companies must comply with regarding the software they implement and/or use must be as follows: 

1. Keep a single set of accounts.
2. Clearly display each and every operation carried out by the company. 
3. Record all transactions with the figures clearly displayed. 
4. Certify each transaction in accordance with the terms established by the competent tax authority or authorities. 

Main measures of the law against tax evasion

To achieve these objectives, the Public Administration requires companies to have a system in place that tracks all business accounting in a unified manner. But this is not the only measure found in this law against tax evasion. The regulations also establish the following measures: 

• The requirements for categorizing a territory as a tax haven a territory.

• Tax amnesties have been tax amnesties have been abolished. 

• The amount of cash payments has been limited to a maximum of €1,000 for any professional transaction. In the case of individuals with tax residence outside Spain, the cash payment limit is reduced from €15,000 to €10,000.
• The debt threshold drops to 600,000 euros as the maximum amount for which a person can be listed in a delinquency file.
• Certain tax incentives have been eliminated certain tax incentives that existed in some autonomous communities for inheritance, gifts, or lifetime inheritances, as well as the freezing of the Registration Tax. 
• The decision has been made to greater control and regulation of the cryptocurrency market, which has been on the rise in recent times and offers legal loopholes and recollocations for dubious taxation. Now, balances and holders of all cryptocurrencies must be reported. 
• Additional cadastral measures are adopted additional cadastral measures and, above all, for greater control of Open-Ended Investment Companies (SICAV) and Listed Real Estate Investment Companies (SOCIMI), which have traditionally been a significant means of tax evasion. 

Despite the fact that this law against tax evasionhas been in force since last summer, the Royal Decree that clearly sets out the technical specifications that companies' accounting management software must have has yet to be approved. However, this information is in the hands of the Tax Agency and will be published shortly. 

What kind of penalties will you face?

In accordance with the provisions of the anti-fraud law, penalties for non-compliance with these regulations apply to both the manufacturers of fraudulent accounting systems and their users. Thus, as a company that produces and/or markets of software that does not comply with the law (dual-use software, for example), you may be penalized with a fine of up to €150,000. 

For their part, users of dual-use or fraudulent software in general may be punished with fines of up to €50,000. That is, freelancers, accountants, financial managers, etc. These penalties have been in force since October 11, 2021, and have already been applied. In this regard, the Treasury may request supporting documents and certificates of transactions carried out using any company's software to verify compliance with the law. 

Easyap's role with the law

In short, we are seeing yet another example of how governments and administrations continue to strive toward digital transformation. There are numerous examples that reflect this: TicketBAI, which is the taxation system for the Basque Country, or the SII and electronic invoicing, which are already mandatory in Spain for any transaction with the Public Administration and will be mandatory between all companies from 2025 onwards.

We also have the case of PEPPOL, which is a mandatory security certificate used in many countries around the world for international invoicing and commercial transactions. 

The truth is that, whether due to commercial or legal obligations, electronic invoicing and digital accounting are now a necessity in any business. Government agencies are pushing for it, and so is the socioeconomic reality. That's where we come in. Easyap. 

With our system, you can record all your accounting in a single software program that adapts to your tax requirements. What's more, you'll not only be complying with anti-fraud legislation and avoiding VAT fraud. Implementing a technological solution like ours allows you to: 

• Issue and receive electronic invoices with any customer or supplier. 
• Manage and track your entire invoice workflow in one place. invoice workflow in one place. 
• Offer all information about the billing process to customers, suppliers, internal teams, and whomever you choose. 
• Handle all tax matters in accordance with the regulations that apply to you. 
• Record and monitor employee expenses incurred in your business. 

And the best thing is that Easyap's system is compatible with any ERP. In addition, it adapts to your business volume, since we charge per invoice processed rather than a fixed monthly or annual fee. You can even have it implemented in your business in less than a week and without having to pay any additional costs for this configuration.

We have over 20 years of experience working with companies of all kinds. We have already done so in companies in Europe, Africa, and America, in a wide range of sectors , adapting to the specific legal requirements of each location. Why wouldn't we be able to do the same for you? To help you with this and if you would like to know more, here is our contact details.