Spanish Verifactu by July 2025

Introducing Spanish Verifactu

Spain has introduced a certified billing obligation, so that taxpayers' computer billing software must comply with specific requirements by July 2025. This new obligation is known as Verifactu.

Verifactu was officially approved in December 2023, and it mandates a specific format, structure and requirements for computer and electronic billing records, enhanced by computer security elements such as chained hashes and electronic signatures. These measures ensure that once a billing record is generated, it cannot be modified without leaving a corresponding record of the change.

The main objectives of the new obligation are to combat fraud and tax evasion and to promote the digitalization of businesses, particularly medium and small companies, preventing the use of software solutions that allow parallel accounting. It also enhances the assistance services offered by the Tax Agency to taxpayers by enabling the download of operations when using Verifactu option with data submission, and it also facilitates the preparation of VAT books and tax returns. Verifactu’s core objectives can be summarized as follows:

• Secure and make the invoice unalterable: QR code will be mandatory for invoices.
• Standardization or interoperability: Advantages include direct communication between business owners and tax advisors, avoiding data transformation costs, etc. Communication with credit entities (e.g., subsidies, ICO loans), and with administrations.
• Administrative simplifications.

Marosa is developing a solution to offer certified billing services to clients in Spain.

Implementation deadline

Following the publication of the law, a regulation for technical development will be issued. Software developers will have a maximum of nine months to comply with its provisions and must include a "declaration of compliance" with this regulation in their products.

The Ministerial Order was published in July 2024 and communicated to the European Union, prior to the approval and publication of the pending implementing regulation.

All taxpayers subject to this new certified billing obligation must adapt to its requirements by July 1, 2025. However, this implementation date is now seen as ambitious, and authorities are discussing to possibly delay to January 2026.

Who Must Comply with Verifactu?

Verifactu obligation does not change the Spanish invoicing requirements, but impacts on the requirements that electronic or computer billing software must comply with. Therefore, this new obligation will apply to Spanish established taxpayers (subject to Companies’ tax, Income tax, and Non-Resident's Income tax, with certain exceptions) provided they are using an electronic invoicing system.

Which taxpayers are exempted from the new Verifactu obligation?

• Notably, it does not apply to taxpayers already subject to the real-time reporting obligation (SII). This obligation is mandatory for businesses considered under the category of big companies.
• Taxpayers exempt from invoicing obligations are also excluded from Verifactu.
• Geographically, it covers all of Spain except regions with special fiscal regimes.
• Non-established companies with a Spanish VAT number are not impacted by the new regulation unless they have a fixed establishment in the country.

How to Comply with Verifactu Obligation?

If you need to comply with Verifactu, you will have to opt between two modalities available for the new certified billing obligation: Verifactu and non-Verifactu option. Although we generally refer to the new obligation as Verifactu, we must consider that there are other alternatives to comply with the new certified billing obligation.

Verifactu or real-time reporting option

This modality involves the automatic submission of the invoice data to the tax authorities. Invoices will be able to be verified in the tax authorities’ portal.

These are the main advantages for taxpayers of opting for Verifactu modality:

• This modality is simpler from a technical perspective. It does not require the invoice register to have a digital signature or event registration.
• Customers will be able to verify your invoice in the tax authority’s portal. This generates trust and reputation towards clients.
• It ensures correct and secure record-keeping. Invoice repository and backup copy with the tax administration.
• Considering that transaction data is submitted to tax authorities, additional support services for taxpayers will be available (preparation of VAT returns, VAT books, etc).
• Less pressure on tax control. This is especially important for VAT refunds.

Non-Verifactu option

Computer and electronic billing systems can develop an option that complies with the new obligation without the real-time reporting of invoice transactions. This is known as the non-Verifactu option.

Although taxpayers may prefer this option to avoid the real-time reporting of transaction data, it must be considered that the non-Verifactu option may present certain disadvantages:

• From a technical perspective, there are more security requirements for the billing systems to be compliant, such as digital signature, event register, and record-keeping for four years under the system’s manufacturer responsibility.
• More risk of tax control, because the tax authorities does not have visibility of your transactions.
• Certain tax services not available.

Key Requirements of the Spanish Certified Billing

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

• Data Protection: Prevent post-issuance modifications of the invoice register.
• Traceability: Enable traceability of registered data for immediate access and extraction.
• Event Register: Automatically record all system movements.
• Reporting Capability: Automatically and instantly report all registered invoices to tax authorities. Although compulsory invoice remission to tax authorities is not yet mandated, systems must be set up for potential automatic and real-time reporting of invoices, likely easing the transition to future mandatory reporting.

One notable 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.

In conclusion, Verifactu 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.