General Tax Code updated to match new SII system


Last November 18, the Official State Gazette (BOE) published an updated version of the General Tax Law  (LGT), including certain modifications related with the new Immediate Information Sharing system (SII).  As we explain in this post, the SII is a VAT management platform that enables businesses to submit their tax return electronically and in real-time.

Among the reforms included in the law on this project, we find an amendment in paragraph 3 of Article 29, regarding formal tax obligations. This stipulates that in certain cases “bookkeeping records must be provided or submitted regularly and by electronic means”. The obligation comes into force as of January 1, 2017, as indicated in final provision 12.

Development of the SII, which is now enshrined in the LGT, entailed an extensive legislative process. In October 2014, the Tax Agency rolled out its VAT management modernization strategy. Then, on July 30, 2015, the Ministry of Finance published a Royal Decree project to modernize, improve and promote the use of electronic media in the VAT area.

What will SII implementation mean?

As of January 1, 2017, some 62,000 companies will be required to join the compulsory SII scheme. The new system will allow VAT returns to be managed electronically, in a similar way to yearly income tax return. The aim is to simplify tax compliance, as the entire process takes place in real time. This should speed up delivery of tax rebates or refunds, as the authorities will be able to carry out the necessary checks more quickly.

EDICOM, leading the project

The Tax Agency has selected EDICOM to take part in the SII pilot project  to be carried out in 2016. During the trial period, taxpayers will be operating through a solution developed by our R+D+i department. This way, we can implement new enhancements to make it easier to use the platform and ensure compliance with this tax liability.

Want to know more about SII?

EDICOM will be holding different SII training sessions in major Spanish cities from January. If you would like to take part, simply fill in this registration form and make your reservation, as places are limited. Soon, we shall notify you of the dates and locations where the courses will be held.