Spain: The European Commission Approved E-Invoicing
Spain is one step closer to implementing mandatory e-invoicing for business-to-business (B2B) transactions, as the European Commission approved its Draft Royal Decree on the so-called Creation and Growth (Ley Crea y Crece).
Spain's adoption of new B2B e-invoicing rules and regulations is a significant development that will reshape business transactions within the country. This change is not just a formality but a fundamental shift that businesses need to be prepared for.
Implementation of E-invoicing Rules
The development of mandatory e-invoicing rules in Spain began in 2023 with a public consultation to gather diverse opinions and comments. Since then, the Decree has navigated through several phases, culminating in the approval of the European Commission, a crucial step in the regulatory process.
Approval is the final step in defining the rules and the first step in introducing the implementation deadlines. The volume of invoicing is a determining factor when taxable persons, businesses, or individuals are subject to B2B e-invoicing requirements.
Taxable persons with an annual turnover of more than EUR 8 million will have 12 months from when the Royal Decree is published in the Official Gazette to meet the e-invoicing requirements. In contrast, taxable persons below this threshold will have 24 months.
However, regardless of turnover, all taxable persons will have to continue sending invoices in PDF format during the transition period. Non-compliance with mandatory B2B e-invoicing rules may incur penalties of up to EUR 10,000.
Conclusion
All taxable persons who have obligations to issue invoices have enough time to familiarize themselves with and prepare for B2B e-invoicing rules, especially considering that the Royal Decree has yet to be published in the Official Gazette.
The 12 and 24-month periods for meeting B2B e-invoicing requirements have yet to start, and all businesses should take the necessary steps to comply with the new rules.
Source: Ayming
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