VAT reporting in Spain: 2021 updates to the SII

What is the SII?

The Suministro Inmediato de Información, or SII, is the immediate electronic reporting system for VAT in Spain. It focuses mainly on the obligation to electronically declare information on invoices issued and received by sending this information to the Tax Agency in Spain.

The SII in Spain allows for the immediate communication of operations carried out by companies, since they are obligated to report within a period of 4 days. With the SII in Spain, it is no longer necessary to present forms 340, 347 or 390.

Who is the SII mandatory for? 

The Suministro Inmediato de Información entered into force on July 1, 2017, becoming mandatory for more than 62,000 Spanish companies. As of January 2018, the SII is effective in the regional Internal Revenues for the Basque Country and Navarra, and in January 2019, it entered into force in the Canary Islands.

Companies that must self-assess monthly VAT in installments include the following:

  • Large companies that bill over 6 million euros;
  • Companies registered in the monthly refund scheme (REDEME);
  • Those that fall under the group of entities included in Chapter IX of Title IX of the VAT Law.

Companies who aren’t required  to use the SII system for reporting VAT in Spain can still do so. The SII offers a number of advantages:

  • Less bureaucracy – under this system, it is not necessary to submit forms 340, 347 and 390 via the SII;
  • Send information faster – as mentioned previously, reporting must be done in a period of 4 days;
  • Send more information  – a greater amount of information can be sent to the Tax Agency;
  • Better communication  – the Tax Agency indicates the status of the information sent, whether it has been accepted (completely or in part), or if it has been rejected;
  • Automation  – Services like Docuten connect automatically with the Tax Agency (SII) to send the information.

What does the SII apply to?

Specifically, the obligation applies to:

  • Issued invoices
  • Invoices received
  • Investment goods
  • Certain intra-community operations
  • Other operations with tax significance such as cash collections, insurance operations and travel agencies.

2021 Changes to the SII in Spain

As of January 1, 2021, a series of new features have entered into force for the SII: new fields and validations. The main objective of these additions is to improve the quality of the information provided and introduce the validations outlined in the draft mandate modifying Mandate HFP / 417/2017, of May 12.

Updates to the SII in Spain are as follows:

New validations on existing fields

Validations on the Ledger of Invoices Issued

  • Total amount
  • Simplified invoices
  • Arrangements with creditors and totally or partially uncollectible debts
  • Block identification of the counterparty
  • Issue date and settlement period
  • Special regimen for used goods
  • Special gold investment regimen
  • Special regimen for group entities
  • Special cash criteria regimen
  • Operations subject to IGIC / IPSI
  • Collections on behalf of third parties
  • Local business leasing
  • VAT pending public administration accrual
  • Invoices prior to inclusion in the SII
  • Block Subject / not exempt
  • Exempt blocks

Validations on the Ledger of Invoices Received

  • Total amount
  • Simplified invoices
  • Issue date and settlement period
  • Agricultural compensation
  • Special regimen for group entities
  • Special cash criteria regimen
  • Intra-community acquisitions of goods
  • Invoices prior to inclusion in the SII
  • Imports
  • Deductible fees
  • Investment goods
  • Deductions in later periods
  • Periods and fiscal year deductions

Validations on the Ledger for Certain Intra-Community Operations

  • Account holder
  • Record ID
  • Counterparty
  • Substitute for initial recipient
  • Deposit
  • Issued / received
  • Initial record ID
  • Final destination
  • Billing agreement and successor entity

New fields in the Ledger of Received Invoices:

Four new optional fields have been added:

  • To be deducted in a later period (identifier that specifies if the invoice should be deducted at a later date)
  • Fiscal year deduction
  • Deduction period
  • Investment goods (identifier that specifies investment goods)

New Ledger on Certain Intra-Community Operations

This New Ledger has been created for sent or received goods included in an agreement for the sale of bienes en consigna, or, purchased goods that are stored until they are needed or sold.

Now you know the advantages, requirements and recent updates to Spain’s SII system for immediate electronic VAT reporting. In addition to our digital signature and e-invoicing services, Docuten facilitates use of the SII. We guarantee easy implementation between our technology and your ERP to automate the sending of files and streamline compliance with the SII in Spain.

If you’d like to start sending VAT information through the SII, contact us today.

Mónica Fustes
Mónica Fustes