Immediate Provision of Information
He Immediate Provision of Information or also known as SII, is a VAT management system based on, as its name suggests, the immediate provision of information. Those who opt for this option or are required to do so must register with the Tax Agency all the details of the invoicing records that are carried out in the exercise of their economic activity.
Furthermore, the Immediate Provision of Information is a Mechanism that requires companies to electronically and almost immediately transmit the details of their invoices and other tax documents to the tax authorities.Instead of filing periodic returns, companies must report on their operations in real time or shortly after the documents are issued.
Improve fiscal control
Furthermore, it is a tax management system that is developed in many countries, including Spain, to improve fiscal control and transparency in tax returns, especially in the area of Value Added Tax (VAT) or other indirect taxes.
On the other hand, the SII seeks Streamline and automate the process of submitting tax information by taxpayers, allowing for the near-instant transmission of billing data and other documents related to business transactions to the tax authorities. This allows the tax authority to have real-time access to information on companies' operations and ensure that the declared data matches the electronic billing records.
The SII system is generally based on the use of software and electronic platforms, usually through the Tax Agency's Electronic Office, which facilitate communication between taxpayers and the Tax Administration.
What are the characteristics of the Immediate Supply of Information (SII)?
Some of the key features associated with Immediate Information Provision include:
- Reduction of tax fraudBy having instant access to billing information, authorities can more effectively identify irregularities and suspicious behavior.
- Greater precision in tax returnsBy automating the process, human error is minimized and the accuracy of the submitted returns is improved.
- Less administrative burdenTaxpayers can avoid the tedious process of manually filing periodic reports, as the information is automatically submitted electronically.
- More efficient oversightTax authorities can focus their efforts on companies with higher tax risks, optimizing resources and streamlining audit processes.
It is, in short, a system for keeping the Value Added Tax registration books through the Electronic Headquarters of the AEAT, through the almost immediate supply of
billing records.
What are the registration deadlines?
• For issued invoices, there is a period of four business days from the invoice issue date to report the information.
• For invoices received, there is a period of four business days from the date of the invoice's accounting record to report the information.
Who is obligated?
It will be mandatory for taxpayers who are currently required to self-assess VAT monthly (approximately 63,000):
• Registered in the REDEME (Monthly VAT Refund Registry)
• Large companies (turnover over €6 million)
• VAT groups
What is recorded in the SII?
• Record book of issued invoices.
• Record book of invoices received.
• Investment asset record book.
• Record book of certain intra-community operations.
What advantages does this system have?
• Possibility of monthly VAT refund.
• Instant tax data, both as declared by the taxpayer and as verified by other taxpayers using the same system.
• Reduction in tax obligations, as the submission of forms 347, 340, and 390 is eliminated.
• Reduction of possible information requirements.
In short, the The Immediate Provision of Information (SII) is changing the way taxpayers submit various types of information to the Tax Agency, streamlining the submission process and improving the efficiency of the tax system.
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