For QAD customers seeking to stay compliant with the latest CTC and eDocument regulations in their respective regions, here’s an insight into the changes to Spain’s introduction of the e-invoicing mandate.
Update June 20, 2024 – Spain Advances Regulatory Framework for “Crea y Crece” Law
The Finance Ministry and the Ministry of Economy and Digital Transformation in Spain have submitted an updated draft Royal Decree for the “Crea y Crece” initiative to the EU Commission. This revised version includes several amendments aimed at enhancing payment efficiency, reducing commercial debts and promoting business growth.
Once approved, the regulatory framework mandates electronic invoicing for all companies and self-employed individuals across Spain. The proposed regulation outlines updated timelines for compliance based on business turnover:
- Legal entities and sole traders with annual turnover >8 million EUR: Required to implement sending and receiving e-invoices along with invoice statuses within 1 year.
- Legal entities with annual turnover <8 million EUR: Must comply within 2 years for sending and receiving e-invoices along with invoice statuses.
- Sole traders with annual turnover <8 million EUR: Required to adopt sending and receiving e-invoices within 2 years and invoice statuses within 3 years.
These timelines will commence upon the publication of the Royal Decree in the BOE (Official Gazette), anticipated in late 2024. Within 12 months of enforcement, businesses issuing e-invoices must provide a PDF document unless explicitly accepted by the recipient.
Spain Gears Up for Digital Transformation: Mandatory E-Invoicing for B2B Transactions Arrives
Spanish businesses are about to embark on a journey towards a more digital future with the upcoming mandatory e-invoicing system for Business-to-Business (B2B) transactions. This significant change marks a shift from the previous system, which only mandated electronic invoices for transactions with public bodies.
A New Legal Landscape: The Crea y Crece Law
The driving force behind this change is the “Crea y Crece” Law (Law 18/2022). This legislation, enacted in September 2022, established the legal framework for mandatory e-invoicing in B2B transactions. This move aims to streamline business processes, enhance efficiency and combat tax evasion.
Phased Implementation for a Smooth Transition
The Spanish authorities are implementing the new e-invoicing system in two phases to ensure a smooth transition for businesses of all sizes:
- Phase 1: Large companies exceeding a specific turnover threshold (likely €8 million) will be the first to comply. The exact date for the e-invoicing rollout in Spain is still under discussion. However, it is expected to be enforced one year after the official technical specifications are released by the governing body with a potential start as early as July 2025.
- Phase 2: Mandatory E-Invoicing for B2B Transactions Arrives: Following a 12-month grace period after Phase 1, all other taxpayers in Spain will be required to adopt the e-invoicing system for B2B transactions. This is anticipated for early 2026.
Enhanced Traceability with QR Codes
The new e-invoicing system will also introduce a mandatory QR code requirement. These QR codes will be embedded within the e-invoices, facilitating easier digital tracking and verification for businesses and tax authorities.
Looking for more information about how to comply with the e-invoicing mandate? Reach out to your QAD Customer Success Manager.
How Does This Affect You?
Rest assured, as a QAD eDocument Compliance customer, you can rely on our commitment to ensuring full adherence to any ongoing changes or updates in regulatory requirements.
Our dedicated team remains vigilant in tracking any alterations or delays in government implementations, ensuring seamless integration on your end. Your compliance and peace of mind are our top priorities. For any further details or questions regarding the implementation in your region please reach out to your QAD Customer Success Manager.
*Provided updates stem from our esteemed partner, SOVOS. As a leading provider of tax compliance solutions, SOVOS offers unparalleled expertise in navigating regulatory landscapes worldwide. With their insights, you can trust in the accuracy and reliability of the information presented.
