Publication of the draft of Royal Decree for the modernization, improvement and promotion of the use of electronic means in the management of VAT
As has been already announcing the Spanish Tax Agency, with effect from January 1st, 2017, those taxable persons who are in a period of monthly settlement will be required to comply with the so-called “Immediate Delivery Information”, which basically involves the keeping of the VAT Ledgers through the Electronic Office of the Spanish Tax Agency.
For this purpose it has been recently published the draft of Royal Decree for the modernization, improvement and promotion of the use of electronic means in the management of VAT, which is basically to change the VAT Regulation, as well as the Regulation of implementing of taxes and the invoicing Regulation, with the intention of adapting the wording of the Law to the new rules.
Through this draft of Royal Decree is being clarified the rules that the Tax Agency wants to implement in order for the taxable persons to keep the VAT records through its Electronic Office. In this regard, the main aspects thereof are as follows:
- Are obliged to comply with the record of the VAT Ledgers through the Electronic Office of the Tax Agency the taxpayers who are on a monthly settlement period. These taxpayers are the ones who have the status of large entity (yearly turnover exceeding 6 million Euro), the ones who are in the monthly VAT refund scheme (optional) and those who are in the VAT grouping scheme (optional).
- However, any taxpayer can also opt for this system voluntarily. The option will be exercised through the census declaration to be submitted during the month of November previous to year to take effect, and must necessarily be prolonged for at least one calendar year.
- The information to be included in the VAT Ledgers will be higher than usual. Thus, in addition to what is currently required under the VAT Regulation (invoice number, date, identification of the recipient / provider, tax base, rate and VAT quota) will also be registered:
- Invoice type (complete or simplified)
- Identify whether it is a rectifying invoice, plus the rectified invoice or amending aspects, or if it is a registrar rectification.
- Description of the transaction.
- Settlement period in which the invoice must be included.
- In the case of imports or exports, the date of clearance before the customs office.
- The wording imposed by the Regulation on invoicing when referring to exempt transactions, reverse charge application or the one corresponding to any of the special VAT schemes’ application.
- Deductible VAT quota in the case of invoices received.
- As regards the deadlines for the electronic submission of the registry entries, the Tax Authorities are more flexible with respect to the initial approach. Thus, the deadlines are:
- For invoices issued: four calendar days from the date of issue. If the issue is made by a third party or by the recipient, the deadline will be eight calendar days.
However, in any case the entry should be done before the 16th of the month following that in which the VAT becomes due.
In the case of exports the deadline of four days starts from the date of admission to the customs office.
- For invoices received: four calendar days from the date of accounting and, in any case, before the 16th of the month following the settlement period in which they were included.
- In both cases neither Saturdays, Sundays and bank holidays are taken into account.
- In exchange for these new obligations is eliminated for the taxpayers who fall within this system the obligation to submit the Recapitulative Statement of transactions with third parties (Form 347), the annual VAT summary (Form 390) and the Recapitulative Statement of VAT Ledgers (Form 340 – for those who are in the monthly VAT refund scheme).
- Also for those taxpayers, the deadline for the submission of VAT returns is extended until the 30th of the month following the monthly settlement period (currently set at day 20).
Below is a copy (in Spanish) of the published draft of Royal Decree.
As the Tax Administration develops this new process, Diligens will appropriately keep you informed, as well as will work to adopt the measures or suggestions for these new obligations to have the least possible impact on the ongoing management of VAT in the companies involved.