Spain

Requirement for certified software Many countries require businesses to use certified software to produce the legal invoice in a country. Portugal is a good example. This means that Tungsten has had to adopt its ‘standard’ offering to customers. We do not create the legal invoice on behalf of suppliers in Portugal, but rather ask the suppliers to attach the legal invoice to our system. Similarly, Spain has announced that as of 1^st January 2024, only state or VERI*FACTU approved invoicing software may be used to prepare and submit invoices. Tungsten will need to assess the requirements the Spanish government has proposed for potential certified software providers from 1^st January 2024, when the changes are expected to take place. Tungsten Network is analysing these requirements and seeing how we can best support our Spanish market considering these new requirements. Tungsten Network is aware of the growing traction of e-invoicing in Spain. We are closely monitoring e-invoicing developments in the country.

Extension of reduction for VAT on electricity Rising electricity costs has been linked to the re-opening of the economy after Covid- 19. Recent events in Russia / Ukraine has also meant that supplies of natural gas from Russia have been interrupted. The Spanish tax authorities have responded to rising costs. The reduction in the VAT rate for electricity to 10% will be extended to 30 June 2022. At this point, the rate will revert to 21%.

Enhancement of administrative co-operation and tax information exchange in the EU on digital platform operators Countries are constantly motivated to make their tax processes more transparent and less cumbersome. To this effect, Spain has introduced the Directive on Administrative Cooperation (DA7). This will help to facilitate the exchange of information on income generated by sellers on digital platforms. Authorities can confirm when tax should be paid, but the automating of the process will result in less of an administrative burden on digital platforms.

B2B e-invoicing mandate developments Developments in the B2B e-invoicing sphere are gaining increasing momentum in Spain. Spain published a Royal Draft Decree on 21 February 2022 in respect of mandatory B2B e-invoicing in Spain. The draft decree outlines the obligations for taxpayers to comply with the mandate from 1 January 2024. Amongst the requirements outlined in the technical specifications are the requirements for invoices to include a specific hash. Spain is a key market for Tungsten Network. We are closely following B2B e-invoicing developments in Spain.

Plastic Tax developments Our recent compliance updates have shown a sharp increase in countries enacting legislation with a ‘green’ agenda. More specifically, we have seen the introduction of the Plastic Packaging Tax in the United Kingdom from 1 April 2022. Spain is now promoting a similar incentive. On 9 April 2022, Spain published Law 7/2022 on Waste and Contaminated Soils. This is being introduced to fight climate change and for the preservation of the marine environment. To achieve this, specifically, Spain is seeking to transpose the following 2 European EU Directives:

• Directive 2018/851, which aims to modify the Waste Framework Directive
• Single-Use Plastic Directive 2019/904, which aims to alleviate the environmental impact of certain plastic products.

Aligning with EU regulations is viewed as the most effective way to achieve these goals.

New invoicing regulations Spain has firmly communicated its intentions to overhaul its e-invoicing system significantly via the publication of a draft resolution published on 21 February 2022. This comes alongside the backdrop of an incentive to modernise the computer programs that support the accounting, billing and management of businesses across the country. Amongst the new requirements being proposed by the Spanish Ministry of Finance is the obligation to include QR codes and ID codes in Spanish invoices. The draft resolution does not specifically refer to B2B e-invoicing. A draft resolution to this effect was published in the summer of 2021 which extends the obligation for e-invoicing to all companies and freelancers in Spain. Both resolutions serve to illustrate the extent of the e-invoicing developments we can expect to see in Spain in the coming months, as Spain proposes to expand the scope of entities subject to mandatory e-invoicing, as well as introducing radical changes to the content of the invoice as well. It is no coincidence that these resolutions have been published relatively close together, underlining Spain’s motivation to harmonise its VAT-related operations and adopt a robust e-invoicing process.

Draft to introduce mandatory e-invoicing

Spain is making some strides with B2B e-invoicing, building on earlier work undertaken for B2G transactions. The draft law ‘Creation and Growth of companies’ is currently work in progress in the Spanish Parliament, awaiting final approval. Tungsten will keep you informed of any developments.

Draft law extending current B2G mandate to specific B2B transactions – public consultation open

Spain’s e-invoicing landscape looks like it may be expanding into the B2B sector, for transactions between companies and the self-employed

The Spanish government recently announced a draft law for ‘Creation and Growth of Companies’. This covers many elements- one being the proposal to extend the obligation to exchange invoices for B2B transactions as well as B2G transactions.

The public consultation for this is open until 6 September 2021.

Spain – Extension emergency zero-rate

In April 20’, the Spanish Government introduced a temporary zero VAT rate for purchases and imports by public entities, hospitals and other not-for profit organisations of surgical masks and sanitary products. This was due to expire on July 31 but has been extended to 31 October 2020 working retrospectively from the date the original derogation expired.

Spain – Extension emergency zero-rate

In April 20’, the Spanish Government introduced a temporary zero VAT rate for purchases and imports by public entities, hospitals and other not-for profit organisations of surgical masks and sanitary products. This was due to expire on July 31 but has been extended to 31 October 2020 working retrospectively from the date the original derogation expired.

Spain extends B2G e-invoicing mandate

Spain has announced an extension of the existing B2G mandate to subcontractors involved in public contracts/tenders, effective from 1 July 2018.

Spain extends B2G e-invoicing mandate

Spain has announced an extension of the existing B2G mandate to subcontractors involved in public contracts/tenders, effective from 1 July 2018.

Spain implements EU VAT Directive 55

The European Union (EU) VAT Directive 55 obliges all EU public authorities to receive invoices electronically, or at least to have a defined for how they will do so, by 27 November 2018.

Spain implements EU VAT Directive 55

The European Union (EU) VAT Directive 55 obliges all EU public authorities to receive invoices electronically, or at least to have a defined for how they will do so, by 27 November 2018.