Invoicing and Tax regulation in Spain

Invoicing Regulation in Spain

Mandatory for B2B, B2C, and B2G transactions, Spain's Invoicing Regulation requires businesses to provide full, detailed and correct invoices. The invoice needs to contain comprehensive details such as date of issue, sequence number, VAT Identification Number (VATIN), supply details, and applicable tax charges.

Real-Time Reporting / Fiscalization in Spain

Spain introduced the Immediate Supply of Information (SII) system for VAT purposes, implementing a form of real-time reporting that is mandatory for large companies (turnover > €6 million), VAT groups, and companies registered for the monthly refund scheme. This law requires the submission of transactional invoice data into the tax agency's online system in real-time for fiscalization.

E-Invoicing in Spain

E-Invoicing in Spain is currently compulsory for B2G transactions. Suppliers providing goods and services to public administrations must issue electronic invoices. For B2B and B2C, e-invoicing is not mandatory but highly encouraged as it facilitates quick processing and guarantees security.

VAT/GST/Tax Compliance in Spain

In Spain, the general VAT rate is set at 21%. However, reduced rates of 10% and 4% apply to certain goods and services. Every taxable person supplying goods or services must register for VAT. For businesses selling to consumers (B2C), they must comply with the destination principle, meaning the VAT rate of the customer's country applies. Spain is strict with its tax compliance standards and it's mandatory for every business to adhere to them.

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