What is the Immediate Supply of Information of VTA and how does it benefit businesses?

The Immediate Supply of Information (SII) is the new VAT processing system developed by the Tax Agency. This system is designed for the electronic management of Value Added Tax (VAT) registry books. As such, it allows the management of VAT registration books almost instantaneously through the AEAT website. Do you want to know how the Immediate Supply of Information works and how it benefits companies? Stay until the end!

What is the Immediate Supply of VAT Information?

The Immediate Supply of VAT Information (SII) is basically a tax management system. It has been implemented in some countries to improve control and efficiency in the fulfillment of tax obligations related to VAT. 

The SII implies that companies must send electronically and immediately the detailed information of their invoices issued and received. As well as other relevant data for VAT liquidation and tax administration. 

This is through a computer system that allows direct and automatic communication between companies and the tax agency. In this way, it is possible to facilitate, both for you and your team, the tasks related to this department.

The implementation of this system, therefore, seeks to improve the fiscal control of companies. And not only that, but also simplify compliance with tax obligations for both companies and the administration.

You may also be interested in: What’s new in the Personal Income Tax return in Spain?

What is the main objective of the SII?

The main objective of the Immediate Supply of VAT Information is to facilitate control and reduce tax fraud. This is due to the fact that it allows the tax administration to have real-time and more detailed information on the operations carried out by companies. 

In this way, it is possible to detect possible irregularities or discrepancies between the VAT returns filed by the companies. It is also possible to have access to the actual data of their transactions. 

The SII also benefits companies by reducing the administrative burden associated with tax compliance. By automating the process of submitting information, the task of filing VAT returns is simplified and errors and omissions are minimized.

It is important to note that the implementation of the SII requires that companies have adequate computer systems to send information electronically. This implies a technological adaptation on the part of the organizations. 

It also reminds that failure to comply with the obligations of the Immediate Supply of VAT Information may lead to penalties and fines by the tax administration.

How does the Immediate Supply of VAT Information work?

The SII works by sending detailed VAT information electronically and in real time to the tax administration. Below, we explain how this process works:

Information obligation

Companies that are subject to the SII regime must send electronically the information of their invoices issued and received. As well as other relevant data for VAT liquidation. 

This data includes the details of the invoice (date, number, amount, etc.), the identification of the issuer and receiver. And other elements necessary for the calculation and control of the tax.

Electronic delivery

The information is sent through a computer system that allows direct communication between the company and the tax administration. 

Companies must adapt their billing and accounting systems to generate electronic files with the required data. These are then transmitted through secure and certified channels.

Shipping times

The SII establishes specific deadlines for sending the information. Generally, it must be sent within 4 business days from the issuance of the invoice. While, the information of the received invoices must be sent within 8 working days from the date of accounting registration.

Real-time communication

One of the key features of the SII is real-time communication. This means that the tax administration has immediate access to the information sent by companies. This allows a more effective and detailed control of operations. 

Likewise, companies may receive notifications and communications from the tax administration related to the information submitted.

Verification and control

The tax administration verifies and cross-checks the information received from the SII with other available data. For example, VAT returns filed by companies and information from other entities. 

This makes it possible to detect possible discrepancies or irregularities and perform control actions. Such as inspections or additional information requirements. This means that the operation of the SII involves the electronic and real-time sending of detailed information on VAT-related operations.

You may also be interested in: Substitute, complementary and corrective declarations.

Who is required to comply with the SII?

The Immediate Supply of VAT Information is mandatory for all taxable persons obliged to pay VAT on a monthly basis. Among these we can mention:

How can you enter the Immediate Supply of VAT Information?

To participate in the SII you must fill out form 036 in November of the year in which it takes effect or at the beginning of the event. In the second case, it will take effect immediately.

If you wish to opt out of this accounting option, you must resubmit the census declaration form. This must be in November to be effective the following year. If you request the waiver, this option is automatically extended.

5 benefits of the Immediate Supply of VAT information

The Immediate Supply of VAT Information (SII) offers a series of benefits that you cannot miss. Below, we detail the most important ones:

You may also be interested in: What is the Financial Transaction Tax?

Do you wish to complete your information on the Immediate Supply of VAT Information? Contact us at TAS Consulting through tasconsultoria@tas-sl.es. Our team of professionals will provide you with the information you require about this new system.