When will electronic invoicing become mandatory?
The approval of the “Create and Grow” Law in Congress, published in the BOE on 29 September, aims to facilitate the creation of companies, reducing start-up costs and simplifying procedures. Among the measures included in this law is compulsory electronic invoicing for companies as a method of reducing late payments.
Greater control to curb late payments
Under the new regulations, every time a company issues an invoice to another company or self-employed person, it will have to be in electronic format.
Currently, this is already done when companies have to invoice with the electronic administration, sending invoices through FACE in Facturae format. Now it is universalised, and companies will have to adapt their systems, if they do not already have them, to create and send these electronic invoices.
This measure is the first step towards greater control of invoicing by the company administration, since one of the objectives of the model is to guarantee greater traceability, together with greater control of payments and tax control.
We will have to wait for its publication in the BOE to see in more detail the deadlines and how these systems are to be implemented.
In addition to issuing electronic invoices, there are two important requirements that the company’s invoicing systems must meet:
It must be made easier for the recipient to view invoices free of charge and without the need to print them.
Customers must be given access to their electronic invoices for at least the last 4 years.
Who is obliged to issue electronic invoices?
The obligation to issue electronic invoices does not only affect sales to end consumers. The self-employed or companies that issue invoices to other companies will have to issue them with electronic invoices.
Adaptation periods
There is a necessary adaptation period for companies to get up to date with their invoicing systems.
For companies with an annual turnover of more than 8 million euros, the deadline is 1 year after the publication of the “Crea y Emprende” Law in the BOE, i.e. September 2023.
If the turnover is less than 8 million euros, the adaptation period is up to 3 years (until September 2025).
It is in this last period that most SMEs and self-employed workers find themselves, and they will gradually see how companies will send them these invoices and, at the same time, demand that they use this format as it becomes more universal.
Thank you very much for reading this article. Tax&Law Spain can help you to overcome other complex matters regarding electronic invoices. I you have questions considering this issue and you are looking for a professional advice and guidance, you can contact me via WhattsApp (+49 1520 8381499) or e-mail (erica@taxandlawspain.com).
