2 December 2014
New VAT reporting requirements (Suministro Inmediato de Información (SII)) will be introduced for the largest or most complex businesses in January 2017. The onerous requirements are being introduced in the hope of reducing VAT fraud.
The new regime will apply to VAT groups, businesses on the monthly Spanish VAT refund regime, and any other business with a turnover above EUR 6 million per annum. This will therefore apply to around 80% of the total VAT turnover in Spain.
Taxpayers will need to provide VAT information from issued or received invoices within a four day period, and this data will permit them to create a draft in progress of the VAT return, replacing the existing monthly and quarterly returns, including the Modelo 347, Modelo 340 and Modelo 390 (annual Spanish VAT return). The idea is to improve and simplify the tax return process allowing a continuous draft and more accurate calculations of how much is due.
In addition there will be an extended time frame for filing VAT returns – on the twentieth of the month instead of the thirtieth – and the taxpayer will have unlimited access to both its own ‘VAT book declared’ and the information from third parties supplying or receiving supplies from the taxpayer.