Immediate Supply of Information on VAT EU VAT Forum 17 of March

SII: Immediate Supply of Information ANALYSIS OF THE SYSTEM: WHAT IS WHO WHY WHEN HOW REGULATORY CHANGES COMUNICATION CHANNELS

1. SII: Analysis of the system WHAT IS THE SII PROJECT? It is a CHANGE to the current VAT management system It modifies the system of keeping the VAT records books which will be made through the AEAT's Electronic Office by supplying INVOICING RECORDS. (The invoice is not sent, nor is it an electronic invoice) The supply will be made IMMEDIATELY which allows the time between invoice registration and the effective realisation of the economic operation to be shortened

1. SII: Analysis of the system 2. WHO IS AFECTED? COLLECTIVE Mandatory Voluntary: by census tax return in November of the previous year The option will be valid for at least one year. In 2017, the option may be made in June. It would be a collective of 63,000 companies which make up 80% of the total VAT invoicing in Spain. - Large companies - VAT groups - Monthly VAT refund register Monthly settlement period

1. SII: Analysis of the system 3. WHY? OBJECTIVES HELP TO THE TAXPAYER: 1st stage: Tax information 2nd stage: Help for VAT self-assessment IMPROVEMENT IN CONTROL: New control model with information available immediately

1. SII: advantages for the taxpayers Simplification of formal obligations: Removal of informative obligations 2. Contrast information: Possibility of offering "Tax Information" In the Electronic Office, a "declared" Records Book and another "contrasted" with the contrast information (from third parties who choose this system) will be available Reduction in errors in compliance with formal obligations and in the tax returns themselves Increase in the deadline to submit self-assessments: First 30 calendar days of the month following the monthly settlement period - Forms 347, 340 and 390 - VAT Records Books

1. SII: Improvement in B2B control Anticipate the information: the time of accounting for invoices is brought closer to the effective realisation of the economic operation 2. The information is cross-referenced if the client and supplier are hosted by the system PORTADA

1. SII: Analisys of the system 4. HOW? Deadlines / submission frequency: Invoices issued Send the record of the invoice within four calendar days, excluding Saturdays, Sundays and national holidays, from the date of issue of the invoice. In any case, before the 16th of the following month of chargeable event In 2017, the submission deadline will be eight days. Invoices received Send the record of the invoice within four calendar days, excluding Saturdays, Sundays and national holidays from the invoice's accounting date or the single customs document. In any case, before the 16th of the following month of deduction In 2017, the submission deadline will be eight days

1. SII: Analysis of the system 4. HOW? Deadlines / submission frequency: Tax period: month Submission Deadline for the issue and delivery of invoices 15 th 30 th SII Contrast information

1. SII: Analysis of the system 4. HOW? Information to supply: DO NOT send on the “invoices” What should be supplied is information about the invoicing: Records: Records Book of Invoices Issued and Received, Investment Goods and certain Intra-Community Transactions.

1. SII: Analysis of the system 4. HOW? Information to supply:

1. SII: Analysis of the system 4. HOW? Information to supply:

1. SII: Analysis of the system 4. HOW? Submission methods: Immediate sending, continuously through "web service". From the invoicing system itself, the information (grouped according to process cycles) is sent with a margin of a few days from the issuance of the invoice. The communication is automatic; "machine to machine“ 2. Completion of a "web form" for those who make very few transactions.

1. SII: Analysis of the system Tax data VERIFIED INVOICES PARTIALLY VERIFIED VERIFIED INVOICES NOT VERIFIED INVOICES

1. SII: Analysis of the system 5. WHEN? IMPLEMENTATION Pilot project: January to June 2017 Entry into force: 1 July 2017 Obligation to send invoicing records from the first half of 2017 between 1 July and 31 December 2017 (except monthly VAT refund register)

2. SII: Regulatory changes LEGAL Modification: - Law 37/1992 of 28 November on Value Added Tax (Art. 164) General Tax Law, (Art. 200). Taxpayer penalty: Fine of 0.5 per cent of the invoice amount in the record, with a quarterly minimum of €300 and a maximum of €6,000 B) Regulatory Modification ( RD 596/2016): Royal Decree 1624/1992 of 29 December (Art. 62 to 71) Royal Decree 1619/2012 of 30 November (Art. 5 and 18) Royal Decree 1065/2007 of 27 July (Art. 32, 36 and 104)

2. SII: Regulatory changes C) Ministerial Order: Approval of Ministerial Order with the content of the invoicing records of the Immediate Supply of Information IN PROCESS D) Collaboration agreement between the Tax Agency and software provider companies , for the electronic supply of invoicing records in third party representation :

3. SII: communication channels 100 FAQs

3. Communication channels: banner SII http://www.agenciatributaria.es/AEAT.internet/en_gb/Inicio/La_Agencia_Tributaria/Campanas/Suministro_Inmediato_de_Informacion_en_el_IVA__SII_/Suministro_Inmediato_de_Informacion_en_el_IVA__SII_.shtml

3. Communication channels: specific help FORUM - FOR THOSE INVOLVED IN THE PILOT TEST. Communication channel for companies which will be involved in the Pilot Test and solely during its duration. * For questions not answered in the FAQs. Large Companies FORUM. Technical Secretary of the Large Companies Forum. Remainder of those obligated to the ISI– Emails: catentidades@correo.aeat.es sii.gestion@correo.aeat.es

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