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:
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:
Spanish VAT Services
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.