The new system of record bookkeeping in electronic office (SII) RD 596/2016, BOE 06/12/16

1.- What is SII?
SII is, in essence, the electronic provision of invoicing records, constituents of the VAT registration books. Information regarding electronic invoicing must be sent to the AEAT so that the record books can be kept updated.

2.- Subjects obliged to provide the information through SII
The new SII is compulsorily applicable to taxable persons, who currently are required to self-assess VAT monthly, including:

• Large companies (annual turnover higher than 6,010,121.04 €);
• Corporate groups for VAT purposes; and
• Those registered in the monthly refund regime (REDEME- Monthly Refund Register).

Voluntarily, it will also be applicable to those individuals who choose to avail themselves through the corresponding census declaration, in which case the reporting period shall be monthly in any case.

3.- Option for electronic record bookkeeping

• The option must be exercised in November of the year preceding the beginning of the calendar year in which it shall take effect by submitting the relevant census declaration (Model 036) or at the time of filing the beginning of the activity, taking effect this option in the current calendar year. The option to apply the SII from 01/07/2017 must be exercised in June of that year.
• The option will be considered extended for the following years unless the option is renounced. Those who opt for this system must comply with the provision of invoicing records for at least the calendar year for which the option is exercised.
• The renounce of the option must be exercised by communication to the competent body of the AEAT, submitting the corresponding census declaration (Model 036) in November of the year preceding the beginning of the calendar year in which it shall take effect.

Taxpayers excluded from REDEME for breach of the requirements for registration or the finding of inaccuracy or falsity in the census information provided to the tax authorities shall be excluded in the same way from the SII unless the reporting period remains monthly.

The termination of the application of the Special Company Group System determines the termination of the SII with effect from the moment it occurs SII unless the reporting period remains monthly.

4.- Information to be provided

The entities included in the SII, in addition to the information provided for traditional record books, will include:

• Invoices issued record book;
  • Invoice type: full or simplified invoice, invoices issued by third parties, and special regime for agriculture and fisheries invoices among others.
  • Registration amendment Identification
  • Operation description
  • Amendment invoices: identification as such, amended invoice reference or specifications amended
  • Substitute invoices: substituted invoices reference or specifications that are replaced
  • Invoicing by recipient
  • Reversal of the taxable person
  • Special Regimes (Travel Agencies; REBU-second-hand goods, works of art, collectors’ items and antiques, special regime; RECC-cash/settlement approach, special regime; Company Groups; Gold Investment)
  • Settlement period.
  • Indication of not subject / exempt operation.
  • AEAT Invoicing Agreement where appropriate
  • Other information with tax repercussions established through Ministerial Order
• Invoices received record book;
  • The reception number is replaced by the number and serial number of the invoice
  • Census amendment identification
  • Operation description
  • Invoicing by recipient
  • Reversal of the taxable person
  • Intra-Community acquisition of goods
  • Special Regimes (Travel Agencies; REBU; RECC; Company Groups)
  • Settlement period deductible tax rate

The settlement period in which operations are recorded.

Accounting date and customs document number (DUA) in the case of imports.

Other information with tax repercussions established through ministerial Order

Electronic supply of invoicing records will be made through the Electronic Office of the AEAT through a web service or, where appropriate, through an electronic form, all in accordance with the record fields approved by Ministerial Order.

5.- Deadlines for electronic document remission of registry entries

• Invoices issued: four calendar days from the date of issue of the invoice. In the case of invoices issued by the recipient or a third party, this period will be eight calendar days. In both cases the remission must be made before the 16th day of the month following that in which the chargeable event occurred.
• Invoices received: four calendar days from the invoice accounting record or document stating the fee settled by customs in the case of imports. In any case, before the 16th day of the month following the settlement period in which operations have been included.
• Certain intra-community transactions (sending or receiving of movable tangible property for temporary use or for conducting expert reports, repairs and work on them): four calendar days from the beginning of the dispatch or transport or, where appropriate for the time of receipt of goods.
  During the second half of 2017 the previous four-day period is extended to eight days.
• Operations where cash/settlement approach special regime applies: general terms without prejudice to the information to be provided at the time when total or partial incoming or outgoing payments are made.
• Registration amendments: before the 16th day of the month following the end of the period to which the return refers.
• Investment goods record book: all records shall be submitted within the deadline of the last settlement period of each calendar year.

Saturdays, Sundays and national holidays are excluded from the calculation.

Taxpayers who apply the SII from 01/07/2017 will be required to submit invoicing records for the first half of 2017 before 01/01/2018.

6.- Deadline for submission of returns and payments

It is extended for those applying SII to thirty calendar days of the first month following the corresponding period of monthly settlement, or until the last day of February in the case of the settlement declaration for the month of January.

7.- Formal obligations exemptions

Entrepreneurs, professionals and taxpayers applying SII are exempt from submitting the following information returns:

• Declaration on transactions with third parties (Model 347) from the corresponding 2017 period;
• Informative statement relating to the contents of the record books (Model 340) for taxpayers registered in REDEME. The exemption will affect statements regarding the information to be supplied from the corresponding period to July 2017.

These statements are added to the annual summary VAT.

8.- Census declaration

Tax records’ bookkeeping through SII; compliance with the obligation to issue an invoice by the recipient or by a third party and the revocation of the same are included among the causes of presentation of the model 036 “Declaration for registration, amendment of or removal from the Register of Businesses, Professionals and Withholders”.

9.- Delays for reasons not attributable to the Administration

Breach of the obligation of tax records’ bookkeeping through the electronic office of the AEAT is added as a reason for delay. The delay shall be calculated from the beginning of the procedure until the date of filing or registration.

10.- Invoicing by recipient of operations or third parties

Individuals and entities applying SII that have opted for the fulfilment of the obligation to issue an invoice by the recipient or a third party, must communicate by census declaration (model 036) that option, the date from which they exercise it and, where appropriate, renounce and effective date. This communication can be made from June 2017.

11.- Deadline for submission of invoices

From 01.01.2017, in the event that the recipient of operations is a businessman or professional, the invoice must be submitted before the 16th of the month following that in which occurred the chargeable.