More than the 90% of the companies that must join SII have already notified the Tax Agency of the details of their business transactions in real time

Assessment of the implementation of the Immediate Supply of Information

  • Over 700 million invoice records of almost 50,000 companies, three quarters of the total turnover of VAT by taxpayers in Spain, have now been incorporated into the system
  • In the case of non-exempt companies that pay VAT, 97% of companies obliged to adapt to the SII have now done so and the difference between invoices received and VAT returns is 84%
  • Companies adhered to the SII can now check on the Tax Agency website to see whether their invoices coincide with what is declared by clients and suppliers, and before the end of the year, they can also check for any missing information on operations that clients and suppliers have reported

20 October 2017.- Almost 50,000 companies of a total of 54,000 taxpayers included in the census of the VAT Immediate Supply of Information (SII) have adhered to the system. Thus, over 90% of companies obliged to adhere to the SII now report their commercial transactions with suppliers and clients to the Tax Agency in real time.

At the start of October, over 700 million invoices had been issued and received, in which a group of large companies, company groups for the purpose of VAT and companies registered in the regime of monthly refund register (‘Redeme’) reported information through the SII. This represented 75% of the total invoices by VAT taxpayers in Spain, only five percentage points from the goal of 80%, which will be reached when all taxpayers belonging to the census are adhered. The overall amount of invoices reported to the SII exceeds 630,000 million euros.

This census of companies obliged to report, consisting of just over 54,000 taxpayers, after renouncing Redeme and the Special regime of VAT Groups, at least 10,000 taxpayers that can benefit from the advantages of both special regimes if in the future they decide to adhere to the SII, taking advantage also of the benefits of this system that permits the speeding up of tax returns, facilitates the voluntary compliance of taxpayers, reduces indirect costs, offers longer terms for settlement of the tax and provides access, if applicable, to a faster and selective checking process.

High quality information

Among the group of taxpayers obliged to adhere to the SII are entities exempt from submitting VAT returns. With the exception of these taxpayers and taking into account only the part of the SII census that settles VAT, the degree of compliance exceeds 97%. Of these companies, in 84% there is no discrepancy between the invoices received which they have submitted through the SII and their own VAT returns, which proves the high reliability of the information incorporated into the system.

As a result of the launch of the SII, VAT returns have been returned faster to the taxpayers adhered who have not presented incidents. In turn, an informative letter has been sent to taxpayers of the census who have not incorporated the required information via the SII, or who have done so unsatisfactorily. No sanctions will be applied while the regulatory modification to establish the applicable procedure for noncompliance with the SII is still to be decided.

Future action

At this time, taxpayers included in the SII can check on the Tax Agency website if their invoices coincide with those declared by clients and suppliers, and before the end of the year they can also check if information is required on operations of which clients and suppliers have informed.

In the future, the Tax Agency will integrate the information declared by taxpayers and that received from their suppliers and clients and will develop a tool for incorporating this information in the VAT return.

Advantages of the system

  • Voluntary completion is made easier: in the E-Office of the Spanish Tax Agency taxpayers will find a "declared" and "contrasted" record with information from third parties included in the SII. This information helps to reduce errors in the compliance of the formal obligations and in the drawing up of Tax returns.
  • Reduction in indirect tax burdens: formal obligations are reduced, as taxpayers will no longer be required to file the information returns form 347 (third-party information), form 340 (transactions in register books) and form 390 (VAT annual summary).
  • Extended VAT payment deadlines: the period to file self-assessments is extended by 10 days.
  • Improvement in VAT management: incorporation into the SII allows companies to strengthen their internal accounting and invoicing processes.
  • More selective and quicker verification: when obtaining information on operations in real time, the Tax Agency can anticipate the checking process, thus speeding up VAT control and returns. This streamlining will be more efficient when clients and suppliers belong to the collective of this system, as information on operations between both will be automatically crossed.