New system for VAT management of the Tax Authorities, based in real-time information
The Tax Agency has published on its website a press release regarding the new management system of VAT which shall enter into force on January 1, 2017.
This system, which will be mandatory for large companies, entities applying the VAT Grouping scheme and entities within the special scheme for monthly VAT refunds (REDEME), does require to submit the detailed records of invoices (not their own invoices) that must be recorded in the VAT Ledgers. Therefore, the entities under this system comply with the VAT Ledgers through the website of the Tax Agency, which will be formed by sending the relevant data for each business transaction.
The main features of the system, so called Immediate Delivery Information (IDI) are:
– It must be sent the information related to the essential elements of the issued or received invoices, no later than 4 days from the date of issue or receipt of the invoice.
– Formalities, such as the filing of the Forms 347, 340 and 390 are removed.
– The deadline for submitting the VAT returns will be extended by 10 days.
– By obtaining the information in real time, the Tax Authorities will be capable of performing checks and to speed up the VAT refunds.
A copy of the press release issued by the Tax Agency is attached.