Spain – Spanish Immediate Information Transfer System (IITS)

Spanish Immediate Information Transfer System (IITS) (SUMINISTRO INMEDIATO DE INFORMACIÓN)

On December 2nd, the Spanish Government has finally decided to give “green light” to the IITS which, in principle, will enter into force in July 1st 2017.

As presented in the Zürich conference, this new system is based on the submission to the tax Authority of “real-time” information on transactions carried out by taxable persons with the (stated) aim of reducing administrative burdens, ease VAT compliance, ease VAT refund processes and strengthening the fight against tax fraud.

With this system, information contained on the VAT records of the taxable persons must be provided to the Tax Authority within a maximum period of four days since invoice date.

Taxable persons affected by IITS are the following:

  • Those considered as “large entrepreneurs” for VAT purposes (turnover in Spain over EUR 6.000.000).
  • Those belonging to VAT Groups.
  • Those applying the so called REDEME (special monthly VAT refund scheme).
  • Those not falling within one of the above three situations but want to voluntarily use the IITS.

We have done an estimation of roughly 62.000 taxable persons that might be affected by the IITS. Spanish VAT registrations of foreign companies will be affected as well.

Specific penalties will apply to those companies failing to be compliant with the IITS.

According to SPANISH VAT SERVICES` analysis, there are some controversial aspects of the system which have been communicated to the Spanish Tax Authority:

  • Significant increase of compliance obligations (the system exceeds the obligation of keeping VAT books and ledgers for the control and knowledge of VAT).
  • Significant increase of costs for companies (the system appears to be onerous for companies).
  • Principle of proportionality might be breached (arts. 242, 243 and 273 VAT Directive).
  • The rule is “de facto” modifying further Spanish rules like the Common VAT Regulation, Invoicing Regulation and General regulations on procedures of tax management which might not be possible.
  • Unjustified discriminatory nature of the system (it will impact only some taxable persons).


Fernando Matesanz
Spanish VAT Services

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Disclaimer:  The information contained in the present page is general and does not constitute legal advice. Before taking any decision or action on the above information you should take the appropriate professional advice.