Electronic Invoicing Will be Mandatory for Spanish Companies
Spain has decided to make B2B electronic invoices mandatory. The measure was published by the “Dirección General de Política Económica” in the Law for the “Company Growth and Creation".
On November 30, 2021 the council of ministers approved the draft law pertaining to electronic invoicing between companies and contractors in Spain. It will likely be published in the BOE in the following months. Immediately after its official publication, companies that invoice over 8 million Euros a year will have 12 months to adapt to this obligation. Entities like SMEs and contractors will have to comply according to a gradual compliance calendar ending 3 years from 2022.
This initiative is part of the recovery and resilience plan, an aid plan financed by the European Union to mitigate the social and economic impact caused by the pandemic.
The electronic invoice has been adopted to promote digitalization, eliminate delays in commercial operations, and push entrepreneurial growth in Spain.
Main benefits of the electronic invoice
- Digitalization of business relaionships.
- Lower transaction costs.
- Greater visibility of commercial transaction flows.
- Faster commercial operations.
Although the government has not published the legal requirements for the new electronic invoicing system companies will have to:
- Exchange electronic invoices with other companies and contractors.
- Grant easy access, visualization, and download to electronic invoice recipients.
- Maintain access to electronic invoices for 4 years, regardless of whether the recipient would like to receive them in an electronic format.
The implementation of the electronic invoice will be conducted in phases according to the company’s size.
- Phase 1: large companies that invoice over 8 million Euros in 1 year (1 year after the law was published)
- Phase 2: All other companies (3 years after the law was published)
Incentives for companies
The government has begun the Digital Toolkit program which seeks to help companies financially so they can adopt the necessary technology to implement the electronic invoice as a business digitalization measure.
The preceding project includes the use of the electronic invoice as a requirement to access any public contracts or subsidies, as well as other incentives to ensure compliance with payment terms.
Status of the electronic invoice in Spain
Currently there is only a draft law introduced referencing the project, and the electronic invoice is completely voluntary and up to recipients do decide the format. Since 2015 all invoices sent to public administrations must be electronic.
EDICOM coordinates GOVEIN2019 project (Action No: 2019-EU-IA-0046)
*The contents of this publication belong solely to EDICOM GROUP and do not necessarily reflect the opinion of the European Union.