HELPING YOU COMPLYING WITH THE SII IN SPAIN

The obligation, in force since 1st July 2017 will affect companies, resident or not, filing monthly VAT returns.

Spain is one of the 14 EU Member States having, or in the process of it, introduced “Digital Reporting Requirements” (DRR), as described in volume 1 of the report dedicated to the “VAT in the Digital Age” by the European Commission.

SII is just the obligation to electronically provide relevant VAT data referred to issued and received invoices to the Spanish Tax Agency (AEAT), in a certain format and time. Among the possible options, Spain’s SII qualifies as a “Continuous Transaction Control” system following the “real time” modality.

Contrary to what happens in other DRR options, SII does not involve the use of mandatory e-invoices. It is however to be mentioned that, when the intended Spanish e-invoice regulation for the private sector is implemented (foreseen for 2024), reporting obligations resulting therefrom will be integrated within the SII for the case of taxpayers within its scope.

What is SII?

The “Immediate Information Supply”, or SII, refers to the obligation affecting some qualifying taxpayers to electronically file the data contained in their VAT registers at the website of the Spanish Tax Agency on, almost, real time basis.

The Royal Decree 596/2016, of 2 December, for the modernization, improvement and promotion of the use of electronic means in the management of the Value Added Tax. Among other novelties, the obligation to file in almost “real time” basis the data corresponding to all the transactions included at the VAT books introduced the, so-called, “Immediate Information System” or SII. The filing is to be made electronically through the website of the Spanish Tax Agency.

This obligation has been in force since 1st July 2017, although affecting to transactions incurred since 1rst January 2017. It affects companies, resident or not, having to file monthly VAT returns, namely:

VAT

Those considered as “large entrepreneurs” for VAT purposes
(turnover in Spain over EUR 6.000.000).

REDEME

Those applying the so called REDEME
(special monthly VAT refund regime).

SII Spain Spanish VAT Groups

Those belonging to
Spanish VAT Groups.

 

It is also possible a voluntary option for the SII, since companies eligible for this system are excluded from certain formal obligations and given longer dead lines for the filing of VAT returns.

Companies within the scope of the SII are meant to submit at the website of the Spanish Tax Agency the required data in a XML file meeting the standards set by the authorities. The deadline to comply with this obligation is 4 days from the moment the sale invoices are issued or the received invoices are accounted for. The possibility to set up a webserver which automatize the filing procedure is contemplated by the authorities.

Want to know more about SII?

Official site

i

SII Portal

Virtual assistant

Deadline calculator

General information

Regulations

Solutions

The possible technological options for a company to carry out its obligations derived from the SII are the following:

Native solution

Native solution

The ERP of the company includes a SII module able to generate the required SII reports in XML format which meets the technical requirements of the Spanish tax authorities, do the filing at its website and the follow up of incidences.

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– In case that an external support was required, our IT and VAT specialists can support your internal IT, VAT and financial departments in order to:

a) The parameterization of the master data of your ERP so to allow generating the required SII XML’s files for the compliance with the SII reporting.

b) Addressing to the incidences which may arise during the SII filing process or resulting from the filed SII reports (see the heading of the menu of our outsourcing SII service)

 The provision of these services will be supported by the use our tool PlatformVAT SII (you can ask for a demo at the corresponding heading of the Menu if interested to know more of this tool).

 –  Enhancing the features of the internal SII reporting solution through the use of our tool PlatformVAT SII (you can ask for a demo at the corresponding heading of the Menu if interested to know more of this tool).

External solution

Bolt-on solution

An external add on SII solution to be integrated with the ERP of the company so it is able to generate the required SII reports in XML format which meets the technical requirements of the Spanish tax authorities, do the filing at its website and the follow up of incidences.

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In case that an external support was required, our IT and VAT specialists can support your internal IT, VAT and financial departments in order to:

 a) The parameterization of the master data of your ERP so to allow the chosen external solution to generate the required SII XML’s files for the compliance with the SII reporting.

 b) Addressing to the incidences which may arise during the SII filing process or resulting from the filed SII reports (see the heading of the menu of our outsourcing SII service).

 The provision of these services will be supported by the use our tool PlatformVAT SII (you can ask for a demo at the corresponding heading of the Menu if interested to know more of this tool).

 –    Enhancing the features of the external SII reporting solution through the use of our tool PlatformVAT SII (you can ask for a demo at the corresponding heading of the Menu if interested to know more of this tool).

Outsourcing SII

outsourcing sii

Outsourcing the compliance with the SII obligations with an external service provider that takes care such obligations on behalf of the company.

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Full SII outsourcing service:

 Depending of the circumstances, it may not be worthwhile for the company that its IT department develops an internal SII reporting solution nor that an external alternative is implemented, either native as may be the SII reporting solution offered by the licensor of the ERP used by the company, or bolt-on such as the licensing of  an external SII reporting solution provided by a third party that may be connected to the ERP of the company so to automate the reporting process.

 For this case we offer our full SII outsourcing service whereby we take care of the compliance on behalf of the company of the compliance with its SII obligations. We provide this service through our solution PlatformVAT SII (you can ask for a demo at the corresponding heading of the Menu if interested to know more of this tool).

SII supporting service:

For the case that the company has already a SII reporting solution and takes care of its SII reporting obligations may still been interested in an external support for addressing to the incidences which may arise during the SII filing process or resulting from the filed SII reports.

 The provision of this service will be supported by the use our tool PlatformVAT SII (you can ask for a demo at the corresponding heading of the Menu if interested to know more of this tool).

 Licensing of PlatformVAT SII:

 The company may be interested in our tool PlatformVAT SII as a external SII reporting tool for the compliance with its SII obligations, which would also would allow accessing to its enhanced features such a reconciliation tool or a VAT return reporting module.

 You can ask for a demo at the corresponding heading of the Menu if interested to know more of this tool and its enhanced features.

 

PlatformVAT

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Find out how PlatformVAT SII will get the right data from your ERP report, transform it to SII XML format and organize your SII routines.

New Field

OUR APPROACH

Preliminary SII review

We have adopted a very practical approach when designing our protocol for those new clients looking for a decision of its optimal SII solution and, once decided, the implementation of the same.

In our opinion, those companies newly coming under the scope of the Spanish SII in Spain should carry-out a “preliminary SII review” the aim of which should be to check the status quo of its ERP system from the point of view of its suitability to provide the required SII metadata, regardless of the definitive solution that may be adopted,

Following our approach, the findings resulting such a “preliminary SII review” should allow the company to guaranty that it can start filling the SII reports since the date when from such obligation starts (“interim scenario”), not depending of the fact that a definitive SII solution is implement before such a date (“optimum scenario”).

According to our proposed approach, the company would so have an alternative plan (“interim scenario”) for the case that the decision and implementation of a final solution cannot be achieved before the moment its SII obligations start (“optimum scenario”).

Additionally, the work done on the “preliminary SII review” should not be lost, regardless of the scenario, as it would always help facilitating the implementation of the final solution that is decided.

The carrying out of our “preliminary SII review” will be carried out by a multidisciplinary team of IT/VAT expert professionals with the use of the “wizard module” of our solution Platformvat SII.

The outcome of this review would be a “report” which would allow the company to conclude on two main points:

AS IT IS:

  • The capability of the company to implement a SII solution before the date its SII obligations start (the starting date).
  • If negative, the capability of the company to adopt an interim solution where SII reports can be generated before the starting date out of the existing data with a minimum of implementation changes.

AS IT WOULD BE:

Decision of the SII solution to adopt (not necessarily before the starting date).

Contact us in case you want to receive more information about the possible alternatives to automate the SII and how we can help you.

About us

Manuel Pérez de Algaba

Indirect Tax Partner

mpalgaba@ivaconsulta.com

Gloria Rodríguez

Financial Manager

grodriguez@ivaconsulta.com

Pablo Luján

Indirect Tax Partner

pablolujan@ivaconsulta.com

Eder Cruz

IT Manager

edercruz@ivaconsulta.com

Contact us