What is Spain’s SII?
SII stands for Suministro Inmediato de Información in Spanish, which means “Immediate Supply of Information”. Commonly known as the Real-time Reporting obligation, it has been mandatory since July 1, 2017. The Spanish Tax Agency requires companies with an annual turnover of over 6 million euros and VAT groups to provide invoice information within four working days of issuing or receiving invoices.
Why Was SII Implemented?
The SII was introduced to improve tax control and assist taxpayers. By reporting transactions closer to the time they occur, the tax authorities can ensure better compliance and monitoring.
Who Needs to Report Under SII?
SII is mandatory for taxpayers who submit monthly VAT returns, including:
- Taxpayers registered in REDEME (Monthly VAT Refund Register)
- Large companies (turnover over 6,010,121.04 euros)
- VAT Groups (approved entities operating as a single VAT entity)
Taxpayers can voluntarily opt into the SII system by submitting Form 036 by November of the preceding year.
How Does SII Work?
Taxpayers covered by SII must electronically submit the following invoice records to the AEAT electronic office (the tax authority):
- Issued invoices
- Received invoices
- Investment goods
- Specific intra-EU transactions
This involves sending detailed invoice information in an Excel format, including taxpayer details, transaction dates, and invoice specifics.
Do You Need to Submit the Actual Invoices?
No, only specific fields from the invoice records related to VAT regulations need to be submitted.
What Are the Benefits of SII?
While SII adds to compliance obligations, it offers significant benefits:
- Reduced Information Requests: there’s less need for the tax authorities to request additional information since many current requests are aimed at providing registers, invoices, or data to verify transactions.
- Exemption from Submitting Forms: Taxpayers are relieved from submitting Forms 347 (Third-party Transactions), 340 (Tax Records), and 390 (Annual VAT Summary).
- Faster Refunds: Refund deadlines are reduced because the tax authorities have near real-time and detailed operational information.
- Extended Submission Deadlines: The submission and payment deadline for regular VAT returns is extended by 10 days.
Our SII Compliance Reporting Service
Due to the high frequency of SII reporting (submitting to the tax office every four days) and the complexity of the data collection and reporting process, many companies find this process daunting.
At Tax Desk, we have a mature SII reporting system and process, making reporting clear, efficient and cost effective. In turn we can save you time and money on SII submissions while ensuring you remain compliant.
Take Action Now!
Don’t let the complexities of SII reporting overwhelm you. Contact us today to streamline your SII compliance.[/vc_column_text][uncode_share layout=”multiple” no_back=”yes” separator=”yes”][/vc_column][/vc_row]