Immediate Supply of Information on VAT

1. ImmediateSupply of Informationon VAT ImmediateSupply of Informationon VAT EU VAT Forum 17 of March

2. SII: Immediate Supply of Information • ANALYSIS OF THE SYSTEM: • WHAT IS • WHO • WHY • WHEN • HOW • REGULATORY CHANGES • COMUNICATION CHANNELS

3. 1. SII: Analysis of the system • WHAT IS THE SII PROJECT? • It is a CHANGE to the current VAT management system • It modifies the system of keeping the VAT records books which will be made through the AEAT's Electronic Office by supplying INVOICING RECORDS. (The invoice is not sent, nor is it an electronic invoice) • The supply will be made IMMEDIATELY which allows the time between invoice registration and the effective realisation of the economic operation to be shortened

4. 1. SII: Analysis of the system • 2. WHO IS AFECTED? COLLECTIVE • Mandatory • Voluntary: by census tax return in November of the previousyear The option will be valid for at least one year. • In 2017, the option may be made in June. • It would be a collective of 63,000 companies which make up 80% of the total VAT invoicing in Spain. - Large companies - VAT groups - Monthly VAT refund register Monthly settlement period

5. 1. SII: Analysis of the system • 3. WHY? OBJECTIVES • HELP TO THE TAXPAYER: • 1st stage: Tax information • 2nd stage: Helpfor VAT self-assessment • IMPROVEMENT IN CONTROL: New control model with information availableimmediately

6. 1. SII: advantages for the taxpayers • Simplification of formal obligations: • Removal of informative obligations • 2. Contrast information: • Possibility of offering "Tax Information" • In the Electronic Office, a "declared" Records Book and another "contrasted" with the contrast information (from third parties who choose thissystem) will beavailable • Reduction in errors in compliance with formal obligations and in the tax returnsthemselves • Increase in the deadline to submit self-assessments: • First 30 calendar days of the month following the monthly settlement period - Forms 347, 340 and 390 - VAT Records Books

7. 1. SII: Improvement in B2B control • Anticipatetheinformation: the time of accountingforinvoicesisbroughtclosertotheeffectiverealisation of theeconomicoperation • 2.Theinformationiscross-referencediftheclient and supplier are hostedbythesystem

8. 1. SII: Analisys of the system • 4. HOW?Deadlines / submission frequency: • Invoices issued Send the record of the invoice within four calendar days, excluding Saturdays, Sundays and national holidays, from the date of issue of the invoice. • In any case, before the 16th of the followingmonth of chargeableevent • In 2017, the submission deadline will be eight days. • Invoices received Send the record of the invoice within four calendar days, excluding Saturdays, Sundays and national holidaysfrom the invoice's accounting date or the single customs document. • In any case, before the 16th of the followingmonth of deduction • In 2017, the submission deadline will be eightdays

9. 1. SII: Analysis of the system 4. HOW?Deadlines / submission frequency: Tax period: month Submission Deadline for the issue and delivery of invoices 15 th 30 th SII Contrast information

10. 1. SII: Analysis of the system 4. HOW?Informationtosupply: • DO NOTsend on the “invoices” • What should be supplied is information about the invoicing: • Records: Records Book of Invoices Issued and Received, Investment Goods and certain Intra-Community Transactions.

11. 1. SII: Analysis of the system 4. HOW?Informationtosupply:

12. 1. SII: Analysis of the system 4. HOW?Informationtosupply:

13. 1. SII: Analysis of the system 4. HOW?Submissionmethods: • Immediate sending, continuously through "web service". From the invoicing system itself, the information (grouped according to process cycles) is sent with a margin of a few days from the issuance of the invoice. • The communication is automatic; "machine to machine“ • 2.Completion of a "web form" for those who make very few transactions.

14. 1. SII: Analysis of the system Tax data VERIFIED INVOICES PARTIALLY VERIFIED VERIFIED INVOICES NOT VERIFIED INVOICES

15. 1. SII: Analysis of the system • 5. WHEN? IMPLEMENTATION • Pilot project: January to June 2017 • Entry into force: 1 July 2017 • Obligation to send invoicing records from the first half of 2017 between 1 July and 31 December 2017 (except monthly VAT refund register)

16. 2. SII: Regulatory changes • LEGAL Modification: • - Law 37/1992 of 28 NovemberonValueAddedTax(Art. 164) • General TaxLaw, (Art. 200). Taxpayerpenalty: Fine of 0.5 per cent of theinvoiceamount in the record, with a quarterlyminimum of €300 and a maximum of €6,000 • B) RegulatoryModification ( RD 596/2016): • Royal Decree 1624/1992 of 29 December(Art. 62 to 71) • Royal Decree 1619/2012 of 30 November(Art. 5 and 18) • Royal Decree 1065/2007 of 27 July(Art. 32, 36 and 104)

17. 2. SII: Regulatory changes IN PROCESS • C) Ministerial Order: • Approvalof Ministerial Orderwiththecontent of theinvoicing records of theImmediateSupply of Information D) Collaboration agreement between the Tax Agency and software provider companies , for the electronic supply of invoicing records in third party representation :

18. 3. SII: communication channels 100 FAQs

19. 3. Communication channels: banner SII http://www.agenciatributaria.es/AEAT.internet/en_gb/Inicio/La_Agencia_Tributaria/Campanas/Suministro_Inmediato_de_Informacion_en_el_IVA__SII_/Suministro_Inmediato_de_Informacion_en_el_IVA__SII_.shtml

20. 3. Communication channels: specific help • FORUM - FOR THOSE INVOLVED IN THE PILOT TEST. • Communication channel for companies which will be involved in the Pilot Test and solely during its duration. • * For questions not answered in the FAQs. • Large Companies FORUM. • Technical Secretary of the Large Companies Forum. • Remainder of those obligated to the ISI– Emails: • catentidades@correo.aeat.es • sii.gestion@correo.aeat.es

21. SII IN NEWS

22. THANK YOU FOR YOUR ATTENTION