Here, we go over the main issues affecting the more than 62,000 businesses involved in the Tax Agency’s Immediate Information Sharing Project. Likewise, we review the main legal regulations that have gradually shaped this future VAT return system.
Frequently Asked Questions
Immediate Information Sharing (IIS) is the new system developed by the Spanish Tax Agency (AEAT) for VAT e-bookkeeping. The new system requires mandatory electronic issuance and submission of the list of invoices sent and received, within a maximum term of 4 working days. This includes simplified invoices (receipts).
The new IIS is of mandatory application to those taxpayers currently required to present a monthly VAT self-assessment. This group includes:
- Large companies (with annual turnover in euros above €6,010,121.04).
- Company groups for VAT purposes.
- Taxpayers registered in the monthly refund regime (REDEME).
- Companies opting to join this new VAT management model voluntarily.
July 1, 2017 is the deadline date set for over 62,000 Spanish businesses to adapt to the new mandatory Immediate Information Sharing system. This model, initially proposed for rollout on January 1, 2017, was postponed due to the absence of government during 2016. Now, implementation of the electronic Value Added Tax (VAT) bookkeeping system is set for July 1, 2017.
The main change imposed by this new project compared to current management is that the billing records of companies, as well as other transactions, will be submitted remotely and immediately to the Tax Agency electronic office. The obligation extends to these five VAT record books:
- Invoices issued.
- Invoices received.
- Investment assets.
- Intra-community transactions.
- Cash amounts record book
- Invoices issued: Maximum period of 4 calendar days from date of issue of the invoice. With deadline by 16th of the month following the one in which the accrual of VAT from the transaction takes place.
- Invoices received: Maximum term of four calendar days as of registration of the accounting entry for the invoice. With deadline by 16th of the month following the one in which the accrual of VAT from the transaction takes place.
- Intra-community transactions: Within 4 calendar days, calculated from the time when the shipping or transport begins or when the goods are received.
- Investment assets: These data must be submitted annually. The deadline for submission shall correspond to the last settlement period, i.e. by January 30.
If the invoice is issued by the recipient or an accredited third-party such as EDICOM, the period is extended up to 8 calendar days.
It will no longer be necessary to generate and issue forms 347, 340 and 390 when reporting VAT information. All this information will now be included in the messages to be sent to the AEAT remotely through the IIS.
The system uses an XML file following the standards set by the AEAT. These files will have a common heading including details of the owner of the book, the tax year and period in which the transactions took place. This header will be followed by a block containing the billing data required.
The system designed by the AEAT proposes a two-way communication model, making it possible to carry out operations such as VAT record book registration, cancellation and modification.
In addition, the Agency will issue messages with the following status reports: full acceptance, partial acceptance or total rejection.