Indirect Tax News - January 2022

SPAIN - Spain approves legislation on mandatory e-invoicing requirements

Spain’s Parliament on 22 December 2021 approved a draft law that imposes new e-invoicing obligations for businesses and entrepreneurs. The legislation would enter into force when regulations thereunder are published, one year from the date of publication for business with turnover over EUR 8 million, and two years from that date for all others.

In July 2021, Spain’s Council of Ministers introduced a “Draft Bill for the Creation and Growth of Companies,” commonly known as the “Create and Grow Act”. In general terms, the law aims to promote entrepreneurship as a key factor to stimulate economic growth in the country. Specifically, the purpose of the bill is to "improve the business climate, promote entrepreneurship and encourage business growth and size, as well as the deployment of collaboration and interaction networks."

Among other measures, the Create and Grow Act will implement the mandatory use of electronic invoicing in transactions between companies – B2B transactions -- and those involving self-employed individuals as a measure to encourage the digitalization of business relations and as a mechanism to combat late payment in commercial transactions. Currently, this e-invoicing obligation is mandatory only for transactions with entities in the public sector and are voluntary in the case of commercial transactions between companies.

The wording of the bill provides as follows:  

  1. All businesses and self-employed individuals must issue and send electronic invoices in their commercial transactions with other businesses and self-employed individuals;
  2. The e-invoices must meet the requirements stated in the invoicing regulation;
  3. Invoice recipients may request an additional copy of the e-invoice at no extra cost during the four-year statute of limitation,.and must be granted access to the required software to read, copy, download and print the e-invoice free of charge. A EUR 10,000 penalty may be imposed on those companies that deny the recipients access to the e-invoices.

The e-invoicing obligation would enter into force one year after regulations on the e-invoicing obligation enter into force for businesses and self-employed individuals whose turnover exceeds EUR 8 million and two years after for all other entrepreneurs and companies.

Rosario Estella

Alvaro Gomez-Elvira