What is new in the new Anti-Fraud Law for the self-employed and entrepreneurs?

The new Anti-Fraud Law in Spain was approved in October 2020 and came into force on October 11, 2021. Its main objective is to fight against fraud and tax evasion in the country. To this end, a series of measures have been established to improve the efficiency of the Tax Administration in the detection and sanctioning of fraudulent conduct. Are you a self-employed or entrepreneur and want to know how this new law can affect you? Stay until the end!

What is the new Spanish Anti-Fraud Law about?

The Anti-Fraud Law was approved on June 9, 2021. That same year, on October 11, part of its sections came into force.

In this first stage, it was established that it was mandatory, as from that date, to have adapted software. However, after the publication of the draft Regulation, and without approval, it was established that the new system would be mandatory as from January 1, 2024. 

That said, it is expected that upon publication, accounting, invoicing and management software will be adapted to the set of measures. In this way, it is intended to stop the use of dual-use software, which allows double accounting.

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When does the Anti-Fraud Law become effective?

The new Anti-Fraud Law is expected to come into force as of January 1, 2024. As we said, this will oblige companies to implement software that prevents manipulation or deletion of recorded data. In addition, it will restrict programs that allow double accounting.

In other words, as of January 1, 2024, the management software you use in your company must be certified to comply with the requirements and parameters proposed in the Anti-Fraud Law. 

What is dual billing or dual use software?

Dual-use software is software that allows companies to do double accounting or double billing. In this way, many organizations can hide their sales from the tax authorities. 

Those who implement this type of software have the idea of making sales without VAT and reducing the taxable base of the Corporate Income Tax. But, what they do not know is that with the new Anti-Fraud Law this type of programs will be sanctioned.

This is because they keep different accounting records that do not reflect, totally or partially, the amount of transactions made. In addition, they result in transactions being altered and much more. 

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What is anti-fraud software?

This software will be in charge of complying with all the requirements of the new Anti-Fraud Law. Its job is to prevent the concealment of sales, “B” invoicing and possible parallel accounting.

Thus, computer or electronic systems and programs must meet certain requirements. That is to say, all those softwares that support accounting, invoicing or management processes involved in economic activities. These requirements are as follows:

8 noteworthy measures of the new Anti-Fraud Law

The Anti-Fraud Law comes with many measures that will make it possible to control and know the real status of companies and enterprises. Among the main measures are the following:

What are the benefits to be gained from the new Anti-Fraud Law?

We can list multiple benefits of the new Anti-Fraud Law. Firstly, it contributes to improving the efficiency of the Tax Administration in the fight against fraud and tax evasion. This translates into higher tax collection and greater tax fairness.

It also contributes to improving the transparency and integrity of the tax system. As a consequence, it favors citizens’ confidence in the institutions and in the fulfillment of tax obligations.

Finally, it also supports improved international cooperation in the fight against fraud and tax evasion. The latter is essential to ensure a fair and equitable global tax system.

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Are you interested in learning more about the new Anti-Fraud Law and how you can best comply with it? Contact us at tasconsultoria@tas-sl.es and our legal and tax specialists will provide you with the help you and your business need. Schedule your free consultation with us.

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