The draft Royal Decree for the modernization, improvement and promotion of electronic means in the management of value-added tax (VAT) sets forth to amend certain articles of the VAT Regulation, the General Regulation of the steps and procedures in tax management and tax inspection matters, and the Regulation governing invoicing obligations.
The series of amendments will develop a new system of keeping VAT registration books through the electronic office of the Spanish Tax Authority. The new system will come into force in the 2017 financial year and shall aim to electronically supply information on invoicing records.
Currently, only taxpayers who are registered in the VAT Monthly Refund Special Regime are required to provide information relating to record books, by filling out form 340.
Rather, from 1 January 2017, all businesses and professionals whose VAT settlement period coincides with the calendar month will be obliged to file VAT books with the electronic office of the Spanish Tax Authority.
The following taxpayers are required to declare VAT on a monthly basis:
- Those whose turnover exceeded 6,010,121,04 euros (large companies) in the last calendar year,
- Those registered in the monthly refund regime, and
- Those part of the group of entities regime.
Other businesses and professionals whose settlement period is not monthly, but for example quarterly, will have the option to opt into this new electronic system of book keeping, although, this will require submitting monthly returns instead of quarterly returns.
This article is not considered as legal advice