Name of the corporation
What are the requirements for
In Spain, electronic invoicing is already very widespread and advanced. Nevertheless, it is not yet mandatory for all taxpayers.
Since 2015, the creation of electronic invoices has been mandatory for suppliers and service providers that conduct business and transactions with the public administration. Generally, since then, all invoices from suppliers and creditors must be electronically submitted to the administrative authority.
An electronic invoice is created in an XML format, called FacturaE, and must be archived by the issuer for at least 5 years.
Breaking News in August 2021
Measures have now been introduced in Spain to help reduce electricity prices. Because the Spanish government has reduced the VAT rate for certain electricity supplies to 10% and this will apply until the end of 2021. In addition, it was also announced that in the third quarter of 2021, the tax on the value of electricity production will be suspended.
As mentioned in our other blog post, Spain is now also adapting to the new EU VAT package. In the context of these e-commerce regulations, the Ministry of Finance has approved the relevant tax forms.
In addition to this, the country continues its efforts to prevent tax fraud and, to this end, has extended subsidiary liability for VAT payments on imports and excise duties on alcohol and hydrocarbons. These measures have been in effect since January 1, 2021.
The FACeB2B system
To send electronic invoices, there is a specific platform in Spain that automates the sending and receiving of electronic invoices. Until 2018, the platform used was FACe (“Punto General de Entrada de Facturas Electrónicas”), until then the system was expanded under the name FACeB2B.
For companies that issue invoices over 5,000€ for administration, the use of this platform is mandatory. For all other Spanish companies, the use of FACeB2B is allowed, but voluntarily. In both cases, however, an invoice will only be recognized if it complies with the regulations of the FacturaE format and contains the appropriate information.
There is no portal where you can upload the invoices because this is done through a web service. The following operations can be performed via this web service:
Companies request a specialized service provider who then integrates the web service into the company’s software, which usually corresponds to ERP software. After that, the company can ensure a fluent invoice data exchange with the Spanish web service.
What is the process of sending invoices?
Sending an electronic invoice through the FACeB2B system is roughly speaking a three-step process: registration, invoice requirements, and invoice generation.
In the first step, a company must register for FACeB2B. This requires a so-called DIRe code so that the company can be authenticated in the system. This code is generated by the registration of the DIRe (Directorio de Entidades). The service provider that the company has contracted must also be registered in this system and additionally authorized by the company as ESF (Empresa de Servicios de Facturación).
As a next step, electronic invoices must have all the requirements. Invoices must comply with the FacturaE format, which basically means that they must be issued in XML schema. So far, B2B users don’t need to create an electronic signature, but this could be introduced in the future. Therefore, companies are advised to prepare for this in advance and make the appropriate arrangements.
Subsequently, the invoice is then generated. The invoice must be converted into a format that corresponds to the ERP system so that it can be read and processed.
Transmission with the help of a service provider
The company first exports the invoice from the ERP system into an appropriate format. Then this converted invoice is sent to the service provider, who is then responsible for transforming it into a FacturaE document. The invoice is then sent to the FACeB2B system and the invoice recipient can receive it. However, this party, as well as all other parties, must be registered in the DIRe, which can be verified through the code. Lastly, the company is informed of the status of the invoice by the service provider. This is done via the company’s ERP system.
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e-Invoicing system on our website. INPOSIA keeps you up to date!
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Muzaffer Havcarci
INPOSIA e-Invoicing-Specialist
