A potential delay expected for Spanish e-invoicing
There is a possible delay in the implementation of electronic invoicing in Spain – yet again!
The Spanish Tax Agency plans on implementing electronic invoicing and reporting in two separate drives – Verifactu on the one hand and mandatory B2B invoicing, as introduced by the Crea y Crece law on the other. Crea y Crece will require the use of specific electronic formats (not PDF) and channels for business exchange.
“Verifactu” addresses invoicing requirements for smaller businesses that are not part of the SII system, and mainly focuses on B2C transactions. It includes aspects of SAF-T and digital reporting. The technical details will be specified in a Ministerial Order anticipated in quarter 3 of 2024, pushing back the original July 2025 deadline.
On the other hand, mandatory B2B e-invoicing regulations were initially expected by mid-2024, with enforcement likely to begin within one to two years after publication, based on company size. However, both the regulation and the essential Ministerial Order, which will outline the syntax and technical specifications for the e-invoicing platform, are still awaiting approval. This approval is necessary before the enforcement timeline can commence.
Delay in Verifactu:
On 26 September 2024, the Spanish Tax Agency announced the launch of voluntary referral web services for Verifactu systems and the QR matching service for both Verifactu and non- Verifactu systems in the External Testing environment (PREPRODUCTION). This new test portal is now accessible on the Spanish Tax Agency’s website.
Earlier in September, the Spanish Tax Agency also introduced a new version of the Billing Records Design Document for Verifactu and non- Verifactu systems, version 0.14.2, which will remain in draft form until the final Ministerial Order is published.
The Ministerial Order for implementing Verifactu is anticipated in October 2024, with the expected go-live date now set for January 1, 2026, which is six months later than originally planned.
Delay in the Crea:
In earlier communication from the Spanish Tax Agency, it was announced that companies with an annual turnover exceeding € 8 million would be required to implement mandatory electronic invoicing within one year of the electronic invoice regulation being gazetted.
Although there is no certainty of when this will happen, it is anticipated that the regulation will be approved by late 2024 or even early 2025, giving these companies until the end of 2025 or the beginning of 2026 to fully transition to electronic invoicing, ensuring compliance with the new legal requirements.
For companies and self-employed individuals with an annual turnover of less than € 8 million, the deadlines are more lenient. They will have two years from the regulation’s enactment to start issuing electronic invoices. Consequently, if the regulation is approved by the end of 2024 or early 2025, these smaller entities will need to adopt mandatory electronic invoicing by the end of 2026 or early 2027.
The new rules about mandatory invoicing are part of a draft Royal Decree connected to Law 18/2022, which focuses on creating and growing companies. This draft was shared with the public on June 20, 2023, for feedback.
Background of e-invoicing and digital reporting in Spain
The concept of mandatory electronic invoicing in Spain is not a recent development. It was first introduced in Law 56/2007, which focuses on Measures to Promote the Information Society. This legislation aimed to encourage the adoption of electronic invoices among companies that interact with public administrations, fostering a more efficient and transparent process.
Building on this foundation, Law 25/2013, enacted on December 27, further extended the requirement.
Law 25/2013 requires the use of electronic invoices and an accounting record of invoices within the public sector. It mandates that all public entities receive invoices through a single-entry point, FACe, which is publicly accessible. Since January 15, 2015, all invoices sent to public sector entities must be submitted electronically in a structured format (Facturae V3.2.X) and signed with an electronic signature based on a qualified certificate. While public administrations must process invoices electronically, they can accept printed invoices under certain conditions, such as when the amount is less than € 5,000.
Law 18/22, known as “Crea y Crece,” aims to facilitate the creation and growth of businesses in Spain and also mandates the use of electronic invoices for all B2B transactions. The software solutions used to generate, process, and validate these invoices must be authorized by the tax administration. Businesses with annual revenues of € 8 million or more must comply with this mandate within one year after the electronic invoicing technical regulations are enacted. Similarly, smaller businesses have two years to comply from the same date.
The technical regulations must align with the standards set by EU Commission Implementing Decision (EU) 2017/1870 and EU Directive 2014/55, as well as Spain’s local invoicing regulations.
On December 6, 2023, the BOE (Official State Gazette) published Royal Decree 1007/2023, dated December 5. This decree approves the regulation that sets the requirements for computer or electronic systems used in the billing processes of businesses and professionals, and standardizes the formats for billing records, commonly referred to as the “Verifactu Regulation.”
What should businesses do to prepare for e-invoicing in Spain?
While the implementation dates may seem to be frequently postponed, it’s crucial for businesses to understand that once the e-invoicing regulations are gazetted, the transition will happen swiftly. To stay ahead, businesses should ensure they are prepared and compliant with all relevant mandates when the time comes. This means having the necessary systems and software in place to manage the new requirements.
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