The SII in 2018


Close to the year end it is worthwhile reminding certain facts affecting those companies under the scope of this obligation.


 1.       The 31st December is the dead-line for filing the SII reports for the data corresponding to the period 1st January to 30th June 2017


The next 31st December will be the last day to send the SII reports corresponding to the data of the VAT registers for the period 1st January to 30th June 2017.

It must be mentioned that any corrections required for this reports would have to be completed by the 16th January 2018.


 2.       Penalties for failure to comply/late compliance of the SII reporting obligations


It has been unofficially accepted that, during 2017, no penalties would be applied in case of those companies failing to comply or late complying with the SII reporting obligations.


Instead, the Tax Authorities have been issuing reminders to those companies obliged by the SII which incurred in any of those scenarios.


Since the first January 2018 it is to be expected that the Tax Authorities will start applying those specific penalties foreseen for those companies which are not compliant with the SII, namely: 0.5% of the gross amounts involved. Minimum penalty of EUR 300 and maximum penalty of EUR 6,000 on a quarterly basis.


3. Reduction of dead-lines


Given its implications on the triggering of penalties, it must be remembered that the dead-line for the filing of SII reports is reduced from 8 to 4 working days (8 days for the case of self-invoicing) since 1st January 2018.


Under an ideal scenario, this makes important for companies under the scope of the SII, that the same have either implemented a native SII reporting solution or, for the case that they use an external bolt-on application, that the mapping of their master data is properly completed so to allow a reasonable level of automation of its SII reporting routines.



For those other companies which are still in the process of reaching such an scenario, we remind our "SII outsourcing service".


 4.       Changes in the SII technical instructions (since 1st July 2018)


 Changes to Order HFP/417/2017 of 12 May are expected in accordance with the "Project Order modifying Order HFP/417/2017, of 12 May, regulating the regulatory and technical specifications for developing the management of the Value Added Tax Record Books through the E-Office of the Tax Agency, established in article 62.6 of the Value Added Tax Regulation, and approved by Royal Decree 1624/1992 of 29 December, and Order EHA/3786/2008, of 29 December, approving Value Added Tax Form 303, self-assessment".


The draft order and its attachment was published for public notice at the website of the Ministry of Treasury and Public Administrations.


The intended SII changes to be implemented since 1st July 2018 are as follows:


 ·       Add the NIF of the successor company in the invoice identification. Goal: identify invoice records carried out by a company in its capacity as successor of another company for company restructuring operations (it is for the case of having to declare inherited transactions occurring when there is a transfer of business).


·      new invoice code is added in the Received Invoices Record Book, called "LC". “Customs – Complementary settlement" (only applies for additional VAT assessments resulting from DUA’s tax inspections. Normal DUAS are not affected).


·         Two marks are added to identify:


v   Within the codes specific to complete invoices, simplified "qualified" invoices (they are simplified, but identify the recipient in accordance with sections 2 and 3 of article 7 of the RD 1619/2012).


v   Within codes for simplified invoices, complete invoices in which it is not mandatory to identify the recipient (these are foreseen in article 6.1.d) of the RD 1619/2012), for example, a non-established business that carries out online sales.



·         Added to the Issued Invoices Record Book an entry to identify invoices issued by third parties in accordance with the provisions of the additional third and sixth disposition of Royal Decree 1619/2012 (they are special self-invoicing provisions for the energy sector).


·      new code of collection / payment method is added for operations under or affected by the special VAT cash accounting scheme to identify collections and payments carried out via direct debit orders.


·           An additional second provision is added determining that taxpayers for whom the SII is mandatory during the course of the fiscal year must send the invoicing records corresponding to the period of the fiscal year previous to being included in the system (the reference is to include future situations where a company comes under the SII during the year (so there are transactions incurred within the year previous to the company starting to file SII). For 2017 the regulations of the SII already included the obligation to declare transactions for the first semester).


Thus, the code “first semester 2017” becomes “first semester 2017 and other invoices prior to inclusion in the SII” .


·            Other changes:


v   On the express request of several companies, an additional field of free content is added, called “external reference”, for adding internal information of the company associated to the record of the invoice.


v   The breakdown of the exempt amount is permitted depending on the different reasons for exemption, which become compatible.


v   When an invoice refers to more than 15 immovable properties, a specific XML will be sent with the remaining details of the properties exceeding this number (It refers to the leasing of immovable property when there are more than 15 immovable properties rented).


v   Some labels are renamed to offer greater clarity and legal accuracy in names: settlement period, invoicing by third parties or by the recipient and amount of property transmission subject to VAT.


5. New companies obliged to file monthly VAT returns since 1st January 2018


It must be reminded that, besides companies appertaining to VAT groups, any company that is obliged to file monthly VAT returns would come under the scope of the SII.


As a result, special care must be taken by those taxable subjects that change its VAT status from quarterly to monthly VAT returns with effect since 1st January 2018, as they will also have to start filing SII reports from this date.


Apart from companies that may have voluntarily applied for the special monthly VAT refund regime in last November, this will be the case of companies which 2017 turnover has exceeded the threshold of EUR 6,010,121.04 to be considered a large company since 1st January 2018 and, so, obliged to file monthly VAT returns.


Also, since the mentioned special monthly VAT refund regime can be applied for during the year 2018, companies doing so would come under the scope of the SII from the period they have to start filing such monthly returns. Besides, the retroactively SII reports for the transactions incurred since 1st January 2018 would be required.




New Year new concerns. Penalties resulting from in...
Draft of Ministerial Order modifying Order HFP/417...


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Tuesday, 18 December 2018


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