Obligation to keep the VAT Ledger of incoming invoices through the SII even in case of VAT exempt transactions
Once the Immediate Provision of Information (SII) has come into force, the first tax ruling and change of criteria by the General Tax Directorate (DGT) arise. In particular, binding tax ruling number V1588-17, of June 20th, 2017 modifies the DGT’s criterion in relation to the obligation to comply with the SII, with respect to the VAT Ledger of invoices received, by a taxable person who performs transactions subject to and exempt from VAT.
In this case, on the one hand, the DGT is asked if an entity that performs health services subject to and exempt from VAT is obliged or not to keep the VAT Ledger of invoices received and comply with the SII, and on the other hand, if it can issue recapitulative invoices with issue date on the last day of the month but actually issued at a later date.
In a binding reply of 26 February 2017, the DGT considered that the taxpayer was not obliged to keep the VAT Ledger of invoices received or to comply with the SII insofar as it is not entitled to deduct the input VAT borne.
However, in this new consultation it modifies its criterion by noting that the SII is based on the provision of the information of the invoice, without being necessary to send the own invoice, and concludes that, although it is not necessary to keep the VAT Ledger of invoices issued by not having the obligation to issue invoices, if it is necessary to keep the VAT Ledger of invoices received, regardless of whether the transactions performed is totally VAT exempted and without the right to deduction, as well as to comply with the SII.
On the other hand, with regard to the doubts raised about recapitulative invoices and their date of issue, DGT mentions the characteristics of recapitulative invoices, which must be issued at the latest on the last day of the calendar month in which the transactions were carried out, unless the addressee is an entrepreneur or professional in which case it must be issued before the 16th of the month following the month in which the transactions are carried out. In addition, it is mandatory to include the date of issuing and the date of transactions when these are different.
A copy, in Spanish, of the binding tax ruling number V1588-17 is attached.