VAT Immediate Supply of Information (SII)

 In Dynamics AX

What is the immediate supply of information (SII)?

It is about changing the current VAT management system which has been in place for 30 years, introducing a new bookkeeping system for Value Added Tax on the AEAT online system, by providing all billing records virtually immediately.

Hence, the new Immediate Supply of Information accelerates the gap between recording or booking invoices and the actual realisation of the underlying economic transaction.

Whom does SII affect?

The new SII will be mandatory for all taxpayers required to self-assess for VAT on a monthly basis (about 63.000 in Spain):

  • Registered with REDEME (Monthly VAT Return Registry)
  • Large Businesses (turnover of over €6,010,121.04)
  • VAT Groups

The new SII can be applied to all other taxpayers who choose to opt in voluntarily (applying for it in the previous month of November of the year of effect through model 036, or at census enrolment time when starting a commercial activity). Although if a taxpayer registered on the REDME does not wish to apply for the SII, an extraordinary opting out period in May 2017 is expected to be approved. Once the refusal is confirmed, this will come into effect from 1 July 2017.

How does the SII work?

Taxpayers applying the SII must keep the following Record Books on the Tax Agency’s E-Office, supplying invoicing records electronically:

  • Issued Invoices Record Book.
  • Received Invoices Record Book.
  • Investment Goods Record Book.
  • Record Book for Certain Intra-Community Transactions.
  • Record Book for cash payments.

To do this, the taxpayer must send the Tax Agency billing details and using this information the different Record Books will be configured, practically in real time.

This information will be sent electronically, specifically using Web Services based on XML message exchanges.

When do you have to send invoicing records to the Tax Agency?

The mandatory application phase for this system begins on 1 July 2017 for taxpayers opting in obligatorily or voluntarily.

The taxpayers applying the SII from 1 July 2017, except those registered with REDEME, shall be obliged to send invoicing records for the first six months of 2017 within the period from 1 July to 31 December 2017.

Issued Invoices

Within four calendar days of invoice issuance, except in the case of invoices issued by the recipient or by a third party, in which case the period is eight calendar days. In any event, the supply of goods or services must be carried out before the 16th of the month in which the Tax on the transaction that is to be recorded accrues.

During the second half of 2017 the four-day term is extended to eight calendar days.

Received Invoices

Within four calendar days of the accounting of the invoice and, in any event, before the 16th of the month following the settlement period in which the corresponding transactions are included.

In the case of imports, the four calendar days apply from when the document stating the customs VAT settlement is recorded for accounting purposes, and in any event, before the 16th of the month following the settlement period in which the corresponding transactions are included.
During the second half of 2017 the four-day term is extended to eight calendar days.

Certain Intra-Community transactions

Within the four calendar days of the date of dispatch or transport or, if applicable, from the date of receipt of the goods in question.

During the second half of 2017 the four-day term is extended to eight calendar days.

Information on Investment Assets

Within the filing period of the last settlement of the year (up to 30 January).

We must consider that the calculation of the four and eight calendar day terms referred to above exclude Saturdays, Sundays and national holidays.

 

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