Electronic invoice in Spain

In Spain, electronic invoicing (Factura Electrónica) is a key component of the national tax system and is increasingly becoming mandatory for businesses and authorities to optimize VAT management, combat tax fraud, and improve efficiency in the public sector. The legal basis for electronic invoicing in Spain is derived from both national laws and European regulations.

1. Spanish Value Added Tax Act (Ley 37/1992, de 28 de diciembre, del Impuesto sobre el Valor Añadido – IVA)

The Spanish Value Added Tax Act (Ley del IVA) serves as the foundation for the taxation of invoicing in Spain, including electronic invoices. It establishes the requirements that invoices must meet to be recognized for tax purposes, whether they are in paper or electronic form.

• Article 164 of Ley 37/1992 specifies that businesses are required to issue invoices for all taxable transactions, and the form of the invoice (electronic or paper) must comply with the authenticity and integrity requirements of the content.
• Article 21 clarifies that electronic invoicing is accepted for tax purposes as long as it meets the authenticity and integrity requirements. This means that electronic invoices are as valid as paper invoices when created in a secure and traceable manner.

2. Ley 25/2013, de 27 de diciembre, de impulso de la facturación electrónica

Law 25/2013, enacted on December 27, 2013, promotes electronic invoicing in Spain and introduces specific provisions regarding the mandatory use of electronic invoicing in the B2G (Business-to-Government) sector. The law was introduced to accelerate the transition from traditional paper invoices to digital invoicing.

• Article 4 of Law 25/2013 establishes that businesses working with the public administration in Spain are required to submit their invoices electronically.
• The law also stipulates that all electronic invoices sent to the public administration must be in an electronic format that complies with the technical and security requirements set by the Spanish Tax Authority (Agencia Tributaria).

3. Regulation 1496/2003 and EU Directive 2014/55/EU

Spain has fully implemented the European Directive 2014/55/EU on electronic invoicing in the public sector. This directive requires all EU member states to introduce a system for electronic invoicing in public sector transactions.

• Regulation 1496/2003: This regulation governs the acceptance of electronic invoices in relation to VAT in Spain. It stipulates that electronic invoices must meet the same requirements as paper invoices, particularly concerning the authenticity of the sender and the integrity of the content.
• EU Directive 2014/55/EU: This directive has been implemented in Spain, making electronic invoicing mandatory for public contracts. The use of the PEPPOL standard for invoice exchange is a key part of this implementation.

4. Sede Electrónica de la Agencia Tributaria (Tax Authority Portal)

The Spanish Tax Authority (Agencia Tributaria) provides a central platform through which electronic invoices must be submitted to the public administration. This platform serves as the reception point for all invoices sent by businesses to public authorities.

• Facturae System: The Facturae system is the central platform for electronic invoicing to the public sector in Spain. It uses an XML format containing all relevant invoice data and complies with the security requirements of the Agencia Tributaria.
• B2G Obligation: Since 2015, electronic invoicing has been mandatory for businesses working with the public administration. Businesses must submit their invoices via the Facturae system, which validates the invoices and forwards them to the relevant public authorities.

5. Archiving Requirements and Electronic Invoice Standards

Spanish regulations require that electronic invoices be subject to the same archiving requirements as paper invoices:

• Archiving Obligation: Electronic invoices must be retained for at least 4 years. This applies to both B2B and B2G invoices.
• The integrity and readability of electronic invoices must be ensured at all times so that they are accessible during a tax audit. This means businesses must archive invoices in a secure and immutable format.

6. Electronic Signatures and Security

In Spain, the authenticity and integrity of electronic invoices are ensured through the use of electronic signatures:

• An electronic signature is required to guarantee the authenticity of the sender and the immutability of the data. Specifically, for invoices submitted via the Facturae system, a qualified electronic signature must be used.
• The EU eIDAS Regulation, which governs electronic identification and trust services, also plays a significant role in Spain, ensuring that electronic signatures are legally recognized.

7. Penalties for Non-Compliance

Businesses that violate the electronic invoicing regulations may be penalized by the Spanish Tax Authority (Agencia Tributaria). This is particularly relevant for non-compliance with the mandatory electronic invoicing in the B2G sector.

• Penalties may be imposed if businesses fail to submit an electronic invoice to the public administration or submit incorrect or incomplete electronic invoices.
• Failure to comply with archiving obligations for electronic invoices may also result in fines.

8. Future Developments

Spain plans to further expand its electronic invoicing system, especially for the B2B sector. In the future, there may be increased obligations for private companies to adopt electronic invoicing to improve tax system efficiency and further prevent tax fraud.

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Summary of Key Legal Foundations in Spain:

• Value Added Tax Act (Ley 37/1992): Electronic invoices are recognized for tax purposes if they meet the requirements for authenticity and integrity.
• Ley 25/2013: Introduces the obligation for electronic invoicing in the public sector (B2G).
• Regulation 1496/2003: Governs the acceptance of electronic invoices for VAT purposes.
• EU Directive 2014/55/EU: Implementation of the EU Directive on electronic invoicing in the public sector using the PEPPOL standard.
• Facturae System: Central platform for submitting and validating electronic invoices to public authorities.
• Archiving Requirements: Electronic invoices must be retained for at least 4 years.
• Electronic Signatures: Required to ensure the authenticity and integrity of electronic invoices.
• Penalties for Non-Compliance: Fines for violations of electronic invoicing regulations.

Conclusion:

In Spain, electronic invoicing is mandatory, particularly in the B2G sector, where businesses must submit invoices via the central Facturae system of the Tax Authority. Electronic invoices must comply with legal requirements for archiving, signatures, and security to be recognized for tax purposes. Strict regulations and potential penalties ensure that businesses comply with the rules of electronic invoicing in a timely and correct manner.