How can we manage receipts for expenses the company wants to deduct?
If the company wants to deduct the VAT from receipts as an expense (for example taxis, per diems, etc.), the receipt/ticket alone is not enough, as a proper invoice is required. If full invoices are not presented, the user will be opting for non-deductibility. If the expenses are not backed up by an invoice, they cannot be declared to the SII, so the VAT cannot be tax-deductible.
How will delinquencies be detected with the SII system?
One of the main objectives of this system is to control tax fraud. The tight deadlines bring the moment of transaction closer to the time of registering information, which will achieve greater precision in tax returns. Moreover, with the verified book users will be able to detect whether a taxpayer may be deducting VAT which has not previously been deposited by another. VAT accounting records must match those of the clients/customers in terms of transactions.
How is the client information signed or authenticated before the AEAT?
Records or blocks of XML messages are not signed. However, it is mandatory to identify yourself with an acknowledged certificate to initiate webservice communication with the AEAT. Edicom is working on the Social Collaborator project to be able to submit documents with an EDICOM certificate on behalf of its clients. On the other hand, Edicom is now a CA in Europe and is therefore authorized to issue recognised certificates for the SII project and establish identification in communications.
Which VAT ledgers will be valid as of July 1?
As of 1 July 2017, the only valid VAT book shall be the one declared to the AEAT e-office. Each company can continue to keep its VAT books in-house, but the only one valid will be that submitted to the AEAT.
Is it mandatory to submit the cash transactions record book?
Companies engaging in cash transactions exceeding 6,000 euros must declare the VAT and are obliged to use the cash transactions book. The information shall be entered separately from the invoice record in the book of invoices issued, in another single monthly entry for each person or entity from which payments are due.
What is the difference between the verified VAT ledger and the real VAT book?
The AEAT electronic office will hold two books. On one hand the declared book, where a company records its invoices issued and received. And on the other, the verified book, where the AEAT will compare the required data with the information declared by the company’s trading partners. Bear in mind that all invoices corresponding to companies with billing of less than €6000 euros are not included, so it is highly likely that there will be a degree of mismatch.
At what point do we start counting the time in intra-Community transactions?
The intra-community transactions record book makes no reference to invoices issued or received between EU countries, but to the sending and receipt of personal property for expert assessment reports or repair works, maintenance, etc… . The deadline is 4 calendar days from the shipment or freight start time, or from the time the goods in question are received.
Which billing information has to be submitted to the AEAT?
First of all, the document record. Next, the type of transaction to be identified by keys and sub-keys. In third place, the invoice or simplified invoice data and, finally, additional details the company is required to communicate.
Is there prior validation in the solution?
EDICOMsii solution validation and the AEAT validation are both synchronized. The syntactic validation is performed in real-time, so that the message sent is constructed following the XML schemas and reaches the AEAT correctly. Moreover, the AEAT also carries out semantic validation. If the message passes the validations in terms of XML format, the business validations are then carried out, returning a response message with the result of the validation and acceptance or not by the AEAT.
What other proposals for sending of information from those suppliers taking the cash basis approach?
The cash basis consists of imputing the income and expenses for the period in which they are collected or paid, regardless of when the transactions were carried out. The system technically provides this option with a specific XML message for this purpose in invoices issued and received.
What data for the first six month period must be submitted?
The information to be provided for the period from 1 January to 20 June 2017 is stipulated in a single additional provision in a draft order issued on February 8, 2017. The ruling states that the records for this period must contain the information on the transactions carried out and in accordance with that set forth in articles 63.3, 64.4 and 66.3 of the Value Added Tax Regulation.
What will be the procedure in the event of provincial decisions?
According to the State Tax Agency, the Provincial Authorities are bound to have their own entry points, but technically, in terms of XML and webservice formats, nothing will change. Nevertheless, it seems that they will not be available until January 2018.
Does a permanent establishment have the same obligations as a Spanish entity?
Yes. If they have a CIF (Fiscal Identification Code) in Spain and issue invoices, they are subject to the same requirements.
How can I sign up for SII voluntarily?
Opting in census declaration (form 036) in the month of November prior to the start of the natural year in which it will take effect, or in time to report the start of the activity, taking effect in the current calendar year. Taxpayers may choose SII for the first time in June 2017. The option will entail the obligation to self-assess VAT monthly.
How is an export registered?
The transaction is recorded in the Invoices Issued Record Book. In the “Special Regime or Transcendence key” field, we enter the value 15. Here, clients must identify themselves – if they are foreign – using the “Country code” and keys 3 “Passport”, 4 “Official identification document issued by the country or territory of residence” and 5 “Residence certificate” or 6 “Other probative document” from the “IDType” field. Moreover, the tax base of the bill will be included in the “Exempt” transaction type field in the “Delivery” block. As reason for exemption we enter the E2 key: “Exempt under Article 21”.
Join our SII system group
We have created a LinkedIn group to inform, discuss and respond to queries from companies on Immediate Information Sharing.
Version 1.1 goes live on July 1, 2018, but version 1.0 will remain until July 20, both in the test environment and in production. As of Monday, July 21, only XMLs of version 1.1 will be accepted.