Since 1st July 2017, Spanish authorities have introduced a new system for the management of VAT returns called “Subministrament Immediat d’Infomación” (SII).
What is « SII »?
It is a mandatory system that requires all concerned companies to send their tax data electronically to the tax authorities within 4 days.
Who is affected by « SII »?
The SII applies to all VAT-paying companies in Spain that file monthly returns.
The SII affects:
- companies with an annual turnover in Spain of more than € 6,010,121 excluding tax;
- companies belonging to a VAT group;
- businesses benefiting from the monthly VAT refund scheme (REDEME).
What are the tax data affected by the SII?
All the documents relating to submitted transactions carried out on Spanish territory are subjected to the SII.
How does the data concerned by the SII have to be declared?
The data relating to the transactions concerned must be included in a file in XML format imposed by the tax authorities which must be uploaded to the tax administration portal within 4 working days of the invoice date.
What is the relationship between the data transmitted within the framework of the SII and the VAT return?
The VAT return filed by the company must not only match with the data it passes on within the SII framework, but also with the data transmitted by its customers, suppliers, the tax administration and by customs.
What are the penalties in case of non-compliance with obligations relating to the SII?
In the event of failure to transmit the XML file within 4 days from the date of issue of the invoices, or in case of incomplete or incorrect data, a penalty of 0.5% of the amounts omitted will be applied, with a minimum of € 300 and a maximum of € 6,000 per quarter.
The tax administration has indicated that as of 1st September 2018, these penalties will be systematically applied in case of non-compliance with the declarations requirements.