Financial authorities around the world increasingly want timely access to relevant transaction data from companies - if possible on the basis of individual transactions or invoices.
Germany is still a long way from that. In the land of poets, thinkers and tax consultants, companies continue to report their sales to the tax office in a highly compressed form and usually only on a quarterly basis. The rude awakening then comes regularly and sometimes years later in the context of a special audit or Value Added Tax audit.
(German) online traders who, however, are taxable in Spain thanks to Amazon and Co., for example, already have to deal with the challenge of providing the tax authorities with information based on individual invoices within a very short time.
SII or What is Spain doing?
In mid-2017, the Spanish legislator introduced a new system for the timely transmission of VAT information - Suministro Inmediato de Información (SII) - for companies subject to tax in Spain.
Does this affect all companies taxable in Spain? No!
The main criterion for an SII obligation is as follows.
Companies must have a turnover in Spain of more than EUR 6,000,000 per calendar year.
If this is the case, extensive reporting obligations must be fulfilled in the following year.
What has to be reported How and When in the context of SII in Spain?
The declarations are always based on the respective invoice. A distinction is made as follows.
- Local outgoing invoices (e.g. deliveries in Spain from a fulfilment centre in Spain): within four working days of the creation of an outgoing invoice
- Local purchaseinvoices (e.g. purchases of goods in Spain): within four working days of the posting of a purchase invoice.
- Intra-Community outgoing invoices (e.g. deliveries from Germany to Spain if the Spanish delivery threshold has been exceeded): within four working days of the start of the shipment
- Intra-Community incoming invoices (e.g. shipments from Germany to a Spanish Amazon fulfilment centre): within four working days from the date of receipt of the goods
This information must be transmitted electronically - in the form of an XML file - to the tax authorities in Spain.
If this obligation is not fulfilled or not fulfilled in time, a penalty of 300 EUR up to 6,000 EUR can be imposed. In addition, there is always the risk that your Spanish VAT ID will be declared invalid - with drastic consequences.
With Taxdoo you can of course automate your SII reporting in Spain - and much more.
Taxdoo is the platform for automated and secure compliance processes
... and provides leading online retailers in Europe not only with the processing of current Value Added Tax -Compliance, Intrastat and Financial Accounting numerous other compliance services via a unique platform.
If you want to know more about how you Value Added Taxcan efficiently and securely map compliance, financial accounting and much more via a platform, then book your individual and free initial consultation with the compliance experts from Taxdoo!
You are also welcome to register for our regular demo webinar in which we will introduce Taxdoo and our compliance services and answer your questions personally.