Spain: Mandatory e-Invoicing in Spain

Spanish Act 18/2022 of 28 September on company creation and growth (known as the Create and Grow Act) introduces a range of new measures including the e-invoice, which is mandatory for all exchanges between businesses and professionals. According to the explanatory notes, the objective of this measure is to encourage the use of e-invoices in transactions between businesses and professionals (B2B) to digitalise business relations, reduce transaction costs and provide transparency in trade, in addition to combatting late payments in commercial transactions.

Regarding the entry into force of the Create and Grow Act, as far as mandatory e-invoicing is concerned, it will be applicable one year after its implementing regulations come into force for businesses and professionals with an annual turnover that exceeds €8 million. For all other businesses and professionals, the adaptation time will be two years following approval of the implementing regulations.

A Draft Royal Decree has been produced to implement the Create and Grow Act with regard to e-invoicing between businesses and professionals. It was announced by the Council of State on June 30, 2023 and it is currently pending approval by the Spanish cabinet and publication in the Official State Journal.

The primary matters implemented in this Draft Royal Decree are listed below.

• The obligation of businesses and professionals to issue and deliver an e-invoice for their B2B transactions with regard to which they are required to issue an invoice pursuant to the invoicing regulations.
• The e-invoices, which must be signed by the issuer using an advanced e-signature, will be identified via a unique code that will comprise the issuer’s tax identification number, the invoice number and series, and the issue date.
• The public e-invoicing system will comprise the following:

1. all private platforms for exchanging e-invoices that comply with the requirements of the Royal Decree;
2. the public e-invoicing solution that will be managed by the Spanish tax authority (AEAT).

• The public e-invoicing solution (SEFE) will also be the archive for all e-invoices issued, including invoices that have been issued and received through private platforms.
• The obligation is established to report certain invoice statuses, such as the commercial acceptance or refusal of the invoice, which must be dated, and payment. This must take place within four calendar days, excluding weekends and national holidays.
• To ensure the interconnection and interoperability of the different invoicing systems, they will be restricted to authorised syntaxes: XML, UBL, EDIFACT and Facturae.
• The receivers of e-invoices may not force the issuer to use a predetermined e-invoicing services provider, platform or solution.
• The B2B e-invoice will not affect Immediate Information Supply, known in Spain as SII, which means that companies must comply with their e-invoicing obligations or remain in the SII system.
• Use of the e-invoice will be limited to clients and suppliers located in Spain or that are VAT registered in Spain.