On 1 July 2017, the SII (Immediate Reporting System) came into effect in Spain. This electronic reporting system must be strictly enforced by the companies concerned, or they risk heavy penalties from the Spanish administration. Explanations and solutions.
Who is concerned?
Several types of companies are subject to SII:
– Companies invoicing more than 6 million Euros annually in Spain (local sales, exports, intra-Community deliveries)
– Companies being on the REDEME regime (monthly reverse charge system)
– As companies self-assess VAT on imports under the deferred VAT system, this reverse charge system automatically implies the application of the SII.
Application of SII
Companies must submit the required data in real time in XML format every 4 days via the website of the Spanish tax authorities. The following documents must be sent: invoices issued, invoices received, investment goods, documents relating to certain European transactions (mainly transfers). In case of non respect or errors in the procedure, a fine up to 0.5% of the amounts concerned will be applied, with a minimum of 300 € and a maximum of 6 000 € per quarter.
How can ASD Group help you
Reverse charge means VAT does not have to be paid when goods are imported into Spain. This is a significant benefit for your company’s cash flow management. However, this implies that you will be submitted to the SII procedure. The administrative procedures in Spain are complicated, time consuming and it is not easy to follow the notifications and the steady pace of the declarations to be made. With its one-stop-shop service and its Spanish branch, ASD Group takes care of all formalities related to your activities in this country, from company incorporation to tax representation and the management of SII.
Contact us for more information !