According to a recent announcement, the Spanish tax authorities (STA) plan to introduce a real time VAT-reporting system as from 2017.

The new system requires large taxpayers to provide the STA with information about the invoices they issue and receive.

But what means “large taxpayers”? The current definition includes business with a yearly turnover exceeding EUR 6 Million as well as VAT groups and businesses using the monthly Spanish VAT refund regime (REDEME). The taxpayers will be required provide the STA with information about invoices they issue within for days of the invoice date. The details required need to be submitted to the STA electronically via an STA web tool.

The new reporting system can be understood as an additional means of control for the STA that entitles to manage information in real time.

At the moment, various questions are unclear. For example, it still remains open if the measures will also apply to foreign businesses that are only registered for VAT purposes in Spain. Also, the consequences resulting from invoices not submitted in time are not yet defined.

In the long run, the system shall replace many existing reports. Consequently, this might also result in changes of existing deadlines.

Since the system is not yet in force, we will keep you updated on the progress of the discussion.