Spanish Certified Billing Obligation by 2025

Approval of the Bill on Spanish Certified Billing Systems

The Spanish certified billing obligation, also known as "Reglamento Veri*factu", was officially approved in December 2023. This regulation lays the groundwork for the future of electronic invoicing in B2B transactions and introduces critical changes in billing systems.

The "Reglamento Veri*factu" defines a specific format and structure for billing records, complemented by certain computer security elements such as chained hashes and electronic signatures. These elements ensure that once a billing record is generated, it cannot be modified without leaving a corresponding record of the change.

This regulation, beyond its role in combating fraud and tax evasion, also paves the way for increased digitalization of businesses. It enhances the assistance services offered by the Tax Agency to taxpayers by enabling them to download operations when using 'Veri*factu' systems with data submission. This facilitates the preparation of VAT books and tax returns.

Implementation deadline

Following the publication of the Law, there will be a regulation for technical development. Software developers will have a maximum of nine months to comply with its provisions. They will also need to include a "declaration of compliance" with this regulation in their products.

All taxpayers subject to this new certified billing obligation must adapt to its requirements by July 1, 2025.

Who Does It Affect?

The certified billing obligation applies to taxpayers subject to Companies’ tax, Income tax, and Non-Resident's Income tax, with some exceptions and postponement request possibilities. Some exceptions are those taxpayers already subject to the Spanish SII (real-time reporting obligation) or those exempt from invoicing obligations. Geographically, it applies throughout Spain, except in regions with special fiscal regimes.

Non-established companies with a Spanish VAT number are not impacted by the new regulation on Spanish billing requirements, unless they have a fixed establishment in the country.

Key Requirements of the Spanish Certified Billing

To ensure compliance, informatic billing systems and software must meet specific criteria, including:

• Data protection of the invoice register to prevent post-issuance modifications.
• A functionality system that enables traceability of registered data for immediate access and data extraction.
• An event register that automatically records all system movements.
• The capability to automatically and instantly report all registered invoices to tax authorities.

One noteworthy aspect of this regulation is that it allows customers to verify the tax quality of simplified invoices received by cross-referencing them on the Tax Authorities’ website.

Although it is not yet set the compulsory remission of invoices to tax authorities, these systems must be already set up with the possibility of this automatic and real-time reporting of invoices to tax authorities - probably, to ease the next step forward making it mandatory.

This regulation aligns with an ongoing project for a B2B electronic invoicing mandate currently in progress. Taxpayer computer systems must adapt comprehensively to meet the requirements of both regulations, using a harmonized data model based on mandatory invoice details, payment methods, and deadlines.

Also, the billing software must comply with the following main requirements:

• Every invoice issued will generate a New register.
• All registers must include a “hash” or mark, as well as digital signature.
• Specific mandatory information must be included per New register.

Finally, this new regulation will impact the general invoicing requirements in Spain:

• It will be required to use a specific sequential invoice number for those invoices issued under the new technical requirements.
• Invoices must contain an identity code and the QR code as required from the new systems, and wording indicating “factura verificable en la sede electrónica de la AEAT”, for those invoices issued under the new technical requirements.

In conclusion, the 'Reglamento Veri*factu' marks a significant milestone in introducing a certified billing solution mandate. While combating tax fraud is a primary goal, its implications for digital transformation and streamlined services are equally noteworthy. Businesses in Spain must prepare for this regulatory shift, keeping an eye on future developments around electronic invoicing.