Michaela Merz

Spain – new compliance system as from 1 of January 2017

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According to the wording of the draft bill version the new VAT compliance system will be compulsory as from January 1st 2017.

The main features of this new VAT compliance system, according to the wording of the existing draft legislation, are as follows:

It is a new VAT compliance system that consists of bookkeeping of the VAT ledgers through the electronic site of the Spanish Tax Authorities –STA- (“Agencia Estatal de Administración Tributaria”).

In principle, this new system will be compulsory for those taxpayers obliged to submit their VAT returns (i.e. Form 303) on monthly basis because either: (i) they are larger taxpayers, (ii) they are included in the VAT Monthly Refund Register (“REDEME”), (iii) they apply the VAT group regime, or (iv) they opt for applying this new system.

Such new system will oblige said taxpayers to keep up to date VAT ledgers electronically through the STA website. Invoice-per-invoice and timely filing (see below) will guarantee immediate and online access to the information by the STA in real time.

As regard the time for entering relevant information into the system, in general terms, (i) as far as the outgoing invoices VAT ledger is concerned: entries should be made within four calendar days (excluding Saturday, Sunday and National bank holidays) as from the invoice date and, in any case, prior to the 16th day of the month following that in which the VAT corresponding to the transaction becomes chargeable, and (ii) as far as the incoming invoices VAT ledger is concerned: entries should be made within four calendar days of the accounting record of the invoice and, in any case, prior to the 16th day of the month following the VAT period in which the relevant transactions are included.

The VAT filing deadlines regarding regular VAT returns (i.e. Form 303) will be moved from the 20th to the 30th of the following month.

The new system will replace some relevant existing monthly/annually tax reports, i.e. Form 347 (annual return for transactions with third parties) and Form 340 (VAT ledgers detailed info submitted by electronic means, nowadays compulsory only for taxpayers included in the VAT Monthly Refund Register -“REDEME”-).

Delays in keeping up to date VAT ledgers through the STA website will be fined with a proportional penalty of 0.5% on the amount of the invoice to be recorded, with a quarterly minimum of €300 and maximum of €6,000.

Please be aware that this is draft only and there might still be changes.

For further information, please contact my colleagues: Alberto Monreal, Partner, Indirect Taxes: alberto.monreal@es.pwc.com or Alfonso Viejo, Partner, Indirect Taxes: alfonso.viejo@es.pwc.com

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