On December 6, 2023, a Royal Decree was published in Spain approving regulations establishing requirements for so-called computerized billing systems. This regulation is closely related to the obligation to issue e-invoices between companies, which has not yet entered into force in Spain, and although only a draft of the applicable regulation currently exists in Spain, it is clear in all respects that this regulation It suggests that it will soon see the light of day.
The purpose of the new regulations on invoicing systems, which will come into force from July 2025, is to prevent or impede the manufacture, manufacture or possession of computer systems or programs that permit or facilitate the manipulation or concealment of accounting procedures. Billing or taxation data.
This regulation targets producers, marketers, and users of these computerized billing systems. It is explicitly stated that companies that are not taxpayers in Spain for direct tax purposes are excluded.
Recently published regulations define the characteristics and functionality that all electronic billing systems mentioned above must have. Some of these features include creating journal entries for each invoice addition, cancellation, or change. A traceability “hash” must be added to these entries. This ensures that all actions performed in the billing system are recorded and cannot be changed. It will also be mandatory to include his QR code on the bill, allowing him to access further information about the bill.
But perhaps the main novelty of this regulation is that computerized invoicing systems must be able to connect with tax authorities in real time and, for the time being, be able to submit invoices to the administration on a voluntary basis on a continuous basis. Invoices sent after this process will be marked as ‘Verified Invoices’, providing complete security to the parties involved in the operation. Therefore, this is a type of clearing system similar to what exists in other member states.
This Regulation provides for the possibility of delegating the task of issuing invoices to third parties, and entities producing computer systems must, by a very comprehensive responsible declaration, It stipulates that compliance with all characteristics must be demonstrated.
Potential issues with Spanish computer billing system regulation
As you can imagine, when new rules are announced, questions and doubts immediately arise.
For example, there is no clear definition of what is meant by a “computerized billing system.” Does the new regulation refer only to business ERP systems (which is the most logical) or to office automation systems (word processors and spreadsheets) that many small and medium-sized businesses with limited resources use to develop? There is a question as to whether it is also mentioned. their bill. It is very important to clarify this point.
There are also some questions about the scope of liability when invoicing tasks are delegated to a third party, as well as the scope of exemptions from new obligations, in particular the integration with so-called real-time VAT. The reporting (SII) system has been in force in Spain since 2017. It appears that some obligations may overlap and this should not be accepted.
As you can see, this is an ambitious regulation and will be difficult to implement as it will require many changes to the claims process for Spain’s large number of taxable persons.
Challenges ahead in the world of VAT
As mentioned above, this regulation is closely linked to the electronic invoicing mandate, which is likely to be approved soon. This regulation requires the issuance of taxable person-to-person (B2B) electronic invoices, which must be sent to a series of electronic platforms and then to the Spanish Tax Office.
The combination of both regulations and the SII system means that a large amount of information from millions of operations will be transmitted in one form or another to the tax authorities in a very short period of time. All this information is an invaluable tool and gives great power to those who have it. In this case, go to the tax office.
All of this will have to be reconciled at some point with VAT in the digital age proposition. The coming era will undoubtedly pose significant challenges to the world of VAT.