The digital era highlights important changes in the business environment and with it the use of electronic invoicing in Spain will become a mandatory regulation in all transactions of the Public Administration, entrepreneurs and freelancers, starting in 2023. Do you want to know more about this topic? Continue reading below!
What is an electronic invoice?
The doubt that many people often have nowadays, does the electronic invoice have the same legal effects as a paper invoice? And the answer is yes.
A digital invoice is a proof of delivery of goods and services. Therefore, it corresponds to a legal alternative to the traditional invoice issued in physical form.
The Spanish Government has considered making the use of electronic invoicing mandatory, an initiative that is part of the Transformation and Resilience Recovery Plan, which aims to contribute to business digitalization and minimize late payment in commercial transactions.
On November 30, 2021, the Council of Ministers approved the draft Crea y Crece Law on invoicing for entrepreneurs and freelancers in Spain.
Who will be required to invoice electronically?
In January 2015, electronic invoicing became mandatory for all those suppliers of the Public Administration in Spain whose invoices exceed €5,000.
It seems that this modality is beneficial in economic terms for the country. In 2021, it was estimated that the use of electronic invoicing enabled savings of around 2.3 billion euros in management costs, which corresponds to 23.15% compared to the previous year.
On the other hand, it is expected that by 2030 electronic invoicing will exceed US$16.68 billion worldwide and an annual growth of 17.40%.
With the approval of the Crea y Crece Law, all Spanish VAT taxpayers, both self-employed and companies, are required to send and receive electronic invoices in all commercial transactions.
At the moment, the entry into force of mandatory electronic invoicing in Spain is expected to take place in 2023 for large companies and in 2025 for the rest.
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What are the requirements to issue an electronic invoice?
In general terms, it is easy to issue an electronic invoice in Spain. But first, in order to carry out this process it is important that, as the issuer, you comply with a series of requirements:
Prior consent of the recipient
Have e-mail and digital signature of the receiver.
Store invoices digitally as submitted
Ensure access to invoices to the recipient in question (viewing, selective search, copying, downloading or printing).
Maintaining access to electronic invoices for 4 years
Ensure compliance with legibility, authenticity and completeness of origin
Create the invoice in a computer application and comply with the minimum requirements for an invoice.
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What is the benefit of electronic invoicing?
The new legislation in Spain regarding the implementation of electronic invoicing in companies and freelancers is a reality that affects the way transactions are carried out between customers, suppliers and businesses.
Now, this reality offers multiple benefits that you can take full advantage of. Do you want to know what they are? We leave you a chart with them below:
Benefits of electronic invoicing
Reduction of human error
Eliminates printing and mailing costs
Facilitates quick and easy access to stored invoices
Provide traceability and transparency
Contributes to the environment
Facilitates the fight against fraud
Supports modernization and digitization of the economy
Improve customer service
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After learning a little more about electronic invoicing in Spain, we can affirm that streamlining the process of purchasing goods and services, and avoiding commercial fraud are essential points in this new regulation which we will continue to hear about in the coming months.
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