How to Automate Your Reporting with SII Regulation in Spain?
The Immediate Supply of Information (SII) is a new bookkeeping system for VAT on the AEAT (Tax Authority) online system (through XML message exchanges) which became mandatory the 1st July 2017 in Spain.
AEAT has an online form for when the taxpayer has a small number of transactions or the taxpayer wishes to send specific records separately.
How does it work?
After issuing or receiving an invoice, a taxpayer is obliged to report the action to AEAT within 4 working days via SII system. Until the end of 2017, companies have 8 working days to report the action. After that the trail period is over, and the 4 working days rule will be in place.
What does AEAT require?
Taxpayers must keep the following fiscal books on the Tax Agency´s E-Office:
- LRFE: Book of Invoices Issued
- LRFR: Book of Invoices Received
- FEIC: Receipts in LRFE
- FRIP: Payments in LRFR
- LROI: Book of some Intra-Community Operations
Who will be obliged to adapt to SII system?
The new SII will be mandatory for all taxpayers required to self-assess for VAT on a monthly basis:
- Large Businesses (turnover of over €6,010,121.04)
- Registered with REDEME (Monthly VAT Return Registry)
- VAT Groups
63,000 companies which make up 80% of the total VAT in Spain fall under new SII system.
What if my company does not comply?
There is a fine introduced by AEAT. A company can be penalized for late reporting of data via the SII system with 0.5% of the amount of each invoice, with a minimum of €300 and a maximum of €6,000 per quarter.
I am JD Edwards customer, how can my company automatize this process?
While developing your own automation program is costly, time consuming and labor consuming, Quistor developed the Quistor SII Extractor together with it’s partner SERES.
How does it work?
You do not need to send vouchers/invoices to Tax Agency, you only need to supply key information based on “Orden Ministerial HFP/417/2017”, 12th May.
Quistor SII Extractor semi-automatically extracts data from F0018 (Invoices and Vouchers with Taxes table in JD Edwards), maps and uploads it to the Tax Authority thanks to SERES partnership.
Different scenarios in JDE are based on a X-Reference table in JDE. Application used to retrieve fiscal mapping of transactions based on unique combinations from:
- Company: F0018
- Order Type: F0018
- Tax rate area : F0018
- Tax explanation code : F0018
- Fiscal Leger Type (from PO of extractor batch) : F0018
For further doubts related to possible fiscal scenarios, you can submit an online application form in AEAT Web page:
Special Considerations for the second half of 2017
- During the second half of 2017 the four–day tem is extended to 8 calendar days
- Code of Special regime: “First half 2017” (16 for LRFE and 14 for LRFR)
- Description of the transaction: records for the first semester.
- Issued Invoices Record Book – LRFE:
- Apart from the type of information reported (not subject, subject and exempt or non-exempt) this must always be reported as subject and non-exempt invoice.
- Received Invoices Records Book – LRFR:
- Accounting date: date you are submitting the transaction (current date for extractor)
- Deductible tax amount: 0
Flexibility & Support
The Extractor is very flexible, it can be configured based on the specific needs of each company, making sure the business meets all the AEAT requirements. Quistor and SERES are here to make sure the Extractor runs smoothly. Customers receive our support on site for the implementation day and after go live for fiscal implementation.
Which are taxpayer benefits of SII?
- Supress the liability of submission models: 347, 340 and 390.
- Up to 10 days to submit regular self-assessments
- Semi-Automatic VAT Information Extractor
- Semi-Automatic Reporting to AEAT
- Web service by SERES, the leader in Electronic Data Interchange with AEAT
- Cloud Platform for monitoring and exchange VAT files with AEAT
- Long-term customer support
- It is much cheaper and faster than developing your own app.