Status of Mandatory Electronic Invoicing Between Companies in Spain

The initiative to implement electronic invoicing between businesses in Spain is described within the "Crea y Crece" Law, which was created in September 2022. This law designates electronic invoicing as the exclusive method for conducting commercial transactions between companies and self-employed individuals in Spain. This measure aims to enhance payment efficiency and oversight, ultimately reducing commercial debts and promoting business expansion.

Technical Regulation of B2B Electronic Invoicing in Spain

On June 20, 2023, the draft Royal Decree for the development of Law 18/2022 on the Creation and Growth of Companies was published, focusing on electronic invoicing between businesses and professionals. Following this publication, a public consultation period was opened for the submission of observations, which ended on July 10, 2023. Subsequently, on February 2, 2024, the Ministry of Economic Affairs and Digital Transformation, together with the Ministry of Finance and Public Administration, presented the draft regulation for the development of the "Crea y Crece" Law to the European Commission. This draft incorporates the amendments proposed during the public consultation phase and outlines the invoicing requirements for businesses and professionals within Spain. Since then, a review period of the draft regulation has begun.

Once this process is completed, the text will be forwarded to the Council of State for the final version and will be presented to the Council of Ministers for approval and publication in the BOE, thus initiating the planned implementation timelines.

Who is Required to Issue Electronic Invoices?

Business owners and professionals engaged in business-to-business transactions are required to issue electronic invoices when the recipient is also a business owner or professional. However, this obligation does not apply under the following circumstances:

• If either party involved in the transaction does not have their primary economic activity headquarters within Spanish territory or lacks a permanent establishment in Spain to which the invoicing is directed.
• Simplified invoices issued in accordance with Article 4 of Royal Decree 1619/2012, except for qualified simplified invoices as defined in Article 7.2 of the regulation.

When is Electronic Invoicing Mandatory?

The Royal Decree will come into effect twelve months after its publication in the Official State Gazette (BOE) and will be applicable from that moment for companies and professionals. According to the draft submitted to the European Commission, the implementation phases are:

• 12 months for the issuance/reception of invoices and notification of corresponding statuses for companies with annual turnover exceeding 8 million euros from the final publication of the Royal Decree.
• 24 months for the issuance/reception of invoices for companies with annual turnover less than 8 million euros from the final publication of the Royal Decree.
• 36 months for the notification of corresponding statuses for companies with annual turnover less than 8 million euros from the final publication of the Royal Decree.

During the first 12 months from the entry into effect of the Royal Decree, companies required to issue electronic invoices in their transactions must accompany them with a PDF copy to ensure readability for companies and professionals for whom the obligation to receive electronic invoices has not yet come into effect, unless the recipient of the electronic invoices voluntarily and explicitly agrees to receive them in their original format.

How will Electronic Invoicing work in Spain?

The Spanish B2B electronic invoicing system will comprise a series of private platforms for electronic invoice exchange that meet the criteria outlined in the Royal Decree, along with a public electronic invoicing solution functioning as an invoice repository, overseen by the State Tax Administration Agency (AEAT).

Electronic invoicing can be conducted using private platforms, the public solution, or a combination of both. Companies and professionals are mandated to issue and transmit electronic invoices to their trading partners while also receiving them from their suppliers through any of these channels. Irrespective of the channel through which the electronic invoice is delivered to the client, all electronic invoice issuers who don't utilize the public electronic invoicing solution are obligated to send an accurate duplicate of each invoice in the Facturae format to the public solution, encompassing the essential minimum requirements defined in the technical regulations of electronic invoicing.

How to Generate an Electronic Invoice?

Electronic invoices must comply with the technical requirements established in the Royal Decree that approves the regulatory development regulating invoicing obligations. As per the draft submitted to the European Commission regarding this regulation, these invoices can be generated using one of the specified syntaxes:

• XML CII format from CEFACT/UN, applicable to all invoices
• UBL format for invoices and credit notes, as defined in the ISO/IEC 19845:2015 standard.
• EDIFACT format for invoices in accordance with the ISO 9735 standard.
• Facturae format, in the version for invoicing between entrepreneurs and professionals that is in force at any given time.

The authenticity of the origin and the integrity of the content of electronic invoices must be ensured through one of the following methods:

• By utilizing an advanced electronic signature in compliance with the eIDAS Regulation governing electronic identification and trust services.
• Through electronic data interchange (EDI) when procedures are employed to guarantee the authenticity of the origin and the integrity of the data.

Statuses of Electronic Invoices

As stipulated in Article 2, paragraph 1 of Law 56/2007 dated December 28, recipients of electronic invoices must communicate the following statuses of invoices:

• Complete commercial acceptance or rejection of the invoice, including the date.
• Full payment of the invoice, along with the date.

Furthermore, it is possible to report the following statuses:

• Partial commercial acceptance or rejection of the invoice, and the corresponding date.
• Partial payment of the invoice, specifying the amount paid and its date.
• Assignment of the invoice to a third party for collection or payment, including the identification of the assignee and the assignment date.

Information regarding the status of the invoice must be submitted within a maximum period of 4 natural days, excluding Saturdays, Sundays, and national holidays, from the date of the status being reported in each instance.

Interconnection Among Private Electronic Invoicing Platforms

Providers of private electronic invoicing platforms are required to establish connections with any other private electronic invoicing provider that are part of the Spanish electronic invoicing system when requested by one of their clients.

Alternatively, if the client permits, providers can utilize the public electronic invoicing solution as a means of interconnection. In the event that the public solution is employed for this purpose, the private electronic invoicing platform chosen by the recipient will be responsible for adapting the electronic invoice message to meet the syntax and technical specifications agreed upon by the parties, should it differ from the format and specifications of the public electronic invoicing solution. This ensures the preservation of the authenticity of the message's origin and the integrity of its content.

EDICOM’s Global Electronic Invoicing Platform

EDICOM, a global leader in electronic invoicing, is the most widely used provider by Spanish companies for exchanging electronic invoices. Our platform is also one of the most preferred choices for Spanish companies and international businesses to manage electronic invoicing with Spanish public administrations. Furthermore, it supports other fiscal procedures such as Immediate Supply of Information (SII) and Ticket Bai (Basque Country).

EDICOM offers its customers a comprehensive solution that complies with all the technical requirements of the Spanish electronic invoicing system and those of any other country worldwide.