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Overview
Business-to-government (B2G) electronic invoicing has been mandatory in Spain since 2015. All public authorities are required to have a system in place to receive e-invoices via the country’s central platform, FACe, and all public authority suppliers are required to submit their invoices electronically through the platform (if the total exceeds €5,000). FACe is mandatory for the central government and optional for regional and local governments.
All invoices must be submitted in the national standard format, FacturaE. FacturaE is an XML-based invoice format. Suppliers are free to choose any service provider they’d like, given the provider is able to connect to the FACe platform.
B2B E-Invoicing
Unlike B2G transactions, business-to-business e-invoicing is not mandatory in Spain. However, the country has developed a relatively new platform for B2B e-invoicing that’s open to the public and free of charge. It’s called FACeB2B, and it’s based on the similar FACe platform for B2G e-invoicing.
Though there is currently no mandate for B2B e-invoicing, between 2024 and 2026, Spain plans to launch a legal standard that will require all vendors to utilize e-invoicing in B2B transactions. A service provider like TIE Kinetix will be able to help any company comply with standards and submit all electronic documents correctly.
The SII
The SII (Suministro Inmediato de Información), is the direct electronic reporting system for VAT (Value-Added Tax) in Spain. This enables companies to declare information on electronic invoices and other business documents, which is then provided to the Spanish Tax Administration Agency.
Timeline and Latest Updates
From 2024: Large B2B VAT taxpayers are required to contain electronic insurance and receipt of invoices.
Rules have been set in place regarding e-invoices and their production, including automated invoicing. This incorporates certified invoicing systems and the voluntary submission of invoices to the Agencia Tributaria - sistemas y programas informáticos o electrónicos (SIF).
From 2026: Other corporations (companies & self-employed) are required to maintain electronic insurances and receipt of invoices.
Two-Phase Plan for B2B E-Invoicing
Between 2024 and 2026 there will be a two-phase rollout for B2B e-invoicing. Beginning in 2024, large companies who pay taxes in Spain will be required to utilize e-invoicing, and all other taxpayers will be required to start in 2026.
According to the Spanish Parliament and the issuance of this law, the country will need to utilize QR codes to help track invoices digitally. This legal requirement will ensure that software developers and retailers are complying with the latest e-invoicing requirements.
Whether B2B or B2G, all companies operating in Spain are subject to a 6-year archiving period for invoices (electronic or not). Archiving outside of Spain is permitted under certain conditions.
Conclusion
According to Vatcalc, the proposal for mandatory e-invoices to all businesses and non-incorporated businesses for B2B transactions aims to improve the efficiency of business operations but also to help fight against VAT fraud.
You can find more details here.
