E-Invoicing in the Canary Islands with SII
Companies based in the Canary Islands have to provide information on taxes payable to the competent authorities within four days since January 2019, in accordance with Regulation SII “Suministro Immediato de Información”, which means “immediate provision of information”. The Canary Islands have their own tax system for VAT and therefore they are not considered part of the EU system.
The following companies are affected to begin IGIC general ledger accounting with the ATC:
- large companies with a turnover of more than 6.010.121,04€.
- Companies that are members of an IGIC group (the equivalent of a VAT group).
- Companies that are under the Special Regime of Monthly VAT Refund (REDEME).
- Companies that voluntarily register for SII (provided they file quarterly IGIC returns and remain in the system for at least one full calendar year)
THE SII-IGIC is a system by which information flows from a company’s ERP system into the ATC database.
The companies concerned must keep and maintain the following general ledgers electronically via the ATC website:
- outgoing invoices reported within four days
- incoming invoices reported within four days from the date of registration
- changes in fixed assets that an entity has had under the pro rata regime during a fiscal year
- listing of capital goods
- listing for special intra-community transactions
The exchange with the relevant tax authorities is web-based and in XML files.
The system ensures that invoicing in relation to VAT and customs formalities can be handled properly and smoothly. In addition, through this system, fraud should be reduced, as the mandate allows audits to be processed more quickly.
The following forms have also been simplified by the SII mandate:
- Form 415: Annual informative statement summarizing the transactions that a company has carried out with third parties during the year.
- Form 416: Annual declaration of exempt operations in application of article 25 of Law 19/1994
- Form 425: Annual summary of transactions
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