The Canary Islands tax authorities are gearing up to implement the Immediate Information Sharing (SII) system starting 1 January 2019. After that date, affected businesses must begin their IGIC (Canary Islands General Indirect Tax) ledger bookkeeping with the electronic office of the Canary Islands Tax Agency.

The Tax Ministry of the Canary Islands Government published this news in the draft decree amending Decree 268/2011 of 4 August approving the regulation for the management of taxes arising from the Economic and Fiscal Regime of the Canary Islands.

The system will be mandatory for:

  • Companies that post large amounts of IGIC (turnover in excess of €6M).
  • Firms covered by the IGIC monthly reimbursement scheme.

Businesses that wish to can also voluntarily sign up to the system.

The technical specifications concerning communication with the Canary Islands Tax Agency and the details of the XML scheme of the file to declare are still pending definition.

The modernization of VAT bookkeeping responds to the tax fraud control and prevention objectives of the Canary Islands Tax Agency. It is therefore necessary to have quality information in the most immediate form possible to properly develop auditing actions.

The new system for bookkeeping in an online office will not only improve the fight against tax fraud but bolster data quality and the correct application of accounting practices, while also saving costs and boosting efficiency for the benefit of all economic agents.

A quick guide to the key points of SII affecting the Canary Islands

Documents and deadlines

  • Outbound Invoices: This record book must be submitted within the next four calendar days after the invoice is issued. The four-day deadline is extended to 8 calendar days in the event that the invoice is issued by the recipient or a third party. By the 16th of the following month at the latest.
  • Inbound Invoices: To be submitted within four calendar days of the date of entry of the invoice in the accounting register and, in any case, before the 16th of the month following the liquidation period in which transactions are included.
  • Investment assets: Must be submitted within the deadline for the last liquidation period of each calendar year (30 January).

Connectivity: The system will have a web service for automatic forwarding and a web portal or form for taxpayers who make few or no transactions or lack their own technical means.

Message validation: The SII system will notify consignment outcome with the following status options: full acceptance, partial acceptance, or total rejection.

Proof safekeeping: EDICOM, accredited as a Qualified Trust Services Provider in accordance with European Regulation 910/2014 eIDAS, has a value-added service that automates the process of the archiving, retrieval, and electronic processing of VAT record books and the replies sent back by the Spanish Tax Agency.

Learn more about the EDICOMSii solution to automate the entire process of sending information to the Spanish Tax Agency

EDICOM provides a cutting-edge solution that overcomes the three great technological challenges of Immediate Information Sharing.

  • Electronic VAT consignment: Automate the consignment of VAT books based on the data residing in your accounting system.
  • Connectivity with the tax authority: Link up with the Spanish Tax Agency electronic office for submission of VAT books and status reply integration.
  • VAT book safekeeping: Safekeeping of ledgers submitted along with status messages issued by the Tax Agency in a qualified storage service according to European Regulation 910/2014.

The EDICOMSii solution has been developed with the aim of enhancing the user experience. That’s why we present a functional design fully adapted to the interchange of information that companies must engage in with the Spanish Tax Agency.

It guides users through the use of e-management platforms in a highly visual fashion to locate any note sent to the Spanish Tax Agency and the associated replies or notifications. It also provides statistics through the representation of customizable graphics.

Does your ERP issue SII system-compliant VAT books? If so, you’re just one step away from compliance with the Spanish Tax Agency requirements. Contact us and find out how to complete your solution by incorporating our communications and certified archiving services.

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If you need further information on how the rollout of SII will affect you, please do not hesitate to get in touch with EDICOM.

+34 96 136 65 65