Transforming B2B Transactions: Mandatory E-Invoicing in Spain

Mandatory use of e-invoicing for business-to-business transactions is set to bring about a significant transformation in Spain. The Spanish Government has recently released a draft implementing regulation outlining the key features and technical requirements of the new Spanish e-invoicing system for B2B transactions. While the regulation is still provisional until approved, it is essential for companies to begin planning and strategizing for the upcoming changes.

The new e-invoicing obligation for B2B transactions was established through law 18/2022, dated September 28, 2022. The implementation of this obligation will be contingent on the approval of the implementing regulation, with different deadlines depending on the annual turnover of companies. Companies with an annual turnover exceeding €8 million will be required to comply within one year after the approval of the implementing regulation. All other companies and professionals will have a two-year timeframe to comply.

The introduction of the new e-invoicing system in Spain serves two main purposes. Firstly, it aims to address the issue of late payments in commercial transactions. Secondly, it seeks to drive the digitalization of Spanish companies, particularly smaller ones. Under the new requirement, all invoices must be submitted to a public e-invoicing solution, which will provide details on their content and status. This will enable the Spanish Tax Authorities to monitor payment deadlines effectively.

The new Spanish e-invoicing system will function through private e-invoice platforms that meet the requirements specified in the implementing regulation. Additionally, there will be a public e-invoicing solution operated by the Spanish Tax Authorities (Agencia Estatal de Administración Tributaria). Companies and professionals will need to issue, send, and receive B2B e-invoices through private e-invoicing platforms, the public e-invoicing solution, or a combination of both. If e-invoices are exchanged directly between private e-invoice platforms, an automatically generated copy of each e-invoice must be submitted to the public e-invoicing solution.

The public e-invoicing solution will act as an e-invoice repository, allowing the Spanish Tax Authorities to monitor the content and status of e-invoices. It will also enable e-invoice recipients to verify received e-invoices through the public e-invoicing solution.

The new e-invoicing obligation primarily affects companies and professionals based in Spain or those with a permanent establishment in the country involved in B2B transactions. However, certain types of invoices are excluded from the requirement.

The draft implementing regulation provides details regarding the semantic data model of the core elements of the e-invoice and the list of permissible syntaxes. Private e-invoice platform operators will be obliged to interconnect with other private e-invoice platforms and accept interconnection requests. With client permission, operators may utilize the public electronic invoicing solution for interconnection purposes.

Recipients of e-invoices must inform issuers about the status of the invoices, including commercial acceptance or rejection and associated dates. For companies required to comply with the Spanish electronic VAT books (SII) system, full effective payment of the invoice and the associated date must be processed within a four-day timeframe through an SII book of received invoices.

The implementing regulation outlines the technical requirements that private e-invoice platforms must fulfill. Additionally, the Spanish Tax Authorities will develop a free e-form to assist small businesses and professionals in generating and sending e-invoices to recipients and the Tax Authorities under specific circumstances.