Facturae to cut Public Administration debts to suppliers

reducir-morosidad-con-facturae

On 23 October, Congress approved the law promoting electronic billing and the creation of a single Accounts Register for payments in the Public Sector, which comes into force as of next year, 2014. This drive towards a paperless Public Administration, along the lines of other similar European initiatives, will facilitate records management, promote environmental friendliness and minimize costs. But in addition to this, Facturae is also an excellent way to cut down on Public Sector late payments to suppliers.

As of next January 1, all Administrations will have an accounting record for invoices, whose managers will forward the information on invoices received to the Tax Authority. This will also allow better knowledge of payments pending, and therefore greater control of any possible delays that might occur.

In addition, the rollout of Facturae will bring to light outstanding debts incurred by the Administration with its suppliers. Hacienda will be able to take action both to block payment of bills to suppliers owing money to the Social Security or Tax Agency and speed up payments from the Administration. Should the Administration default on invoice payments and miss the deadline stipulated by the Delinquency Act (30 days maximum), Hacienda may extract the corresponding resources from the delinquent municipal regional authorities through the funding system and execute the payment due.

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