Electronic invoicing is becoming a reality in Spain and has recently come under the spotlight with the Royal Decree implementing Law 18/2022, Article 12, of 28 September, commonly known as the `Crea y Crece Law´, which aims to promote the creation and growth of companies in order to prevent and avoid tax fraud and which includes a new measure: it will be mandatory to issue an invoice when the recipient of the transaction is a business or professional.
At present, the Spanish Tax Agency has not approved an exact date for the application of this measure; however, this obligation will not be implemented immediately, but a transitional period has been designed to allow entrepreneurs to adapt to this new reality:
– Within 1 year from the approval of the regulation for those entrepreneurs and professionals with a turnover of more than 8 million euros.
– Within 2 years from the approval of the regulation for those professionals and entrepreneurs with a turnover of less than 8 million euros.
The e-invoice is a digital document that has the same legal validity as a paper invoice but, as the name suggests, is issued and received electronically, thus saving costs, streamlining administrative processes and improving transaction security. In an increasingly digital environment, this measure also aims to improve administrative management by increasing the efficiency of invoice management and reducing the use of paper.
This action represents an important step in the modernization of the business system, and to this end the Tax Agency will implement a free application called “Verifactu” for SMEs and the self-employed to send their invoices immediately. This application is a system for issuing verifiable invoices that aims to combat fraudulent practices.
It is advisable to keep an eye on the next updates from the government and the Tax Agency for more precise information on implementation deadlines and new developments.
Carmen Moya López
MDG Advisors
