Tungsten Automation is acutely aware of major changes expected in Spain, which has now introduced technical requirements pertaining to certified software billing systems via the publication of a draft Ordinance in January 2024. Spain is also finalising plans concerning an upcoming Business-to-Business (B2B) e-invoicing mandate. Presently, the Spanish government has not released any technical specifications regarding the mandate. A firm date for its inception has not yet been confirmed, though it is widely expected to commence in 2025.

Tungsten Automation is analysing the technical requirements pertaining to certified billing software systems outlined in the draft Ordinance.

Specifically, concerning scope:

• The measures will impact resident taxpayers in Spain.
• Taxpayers who are VAT-registered but not resident in Spain will not come under the scope of the regulations.
• Taxpayers who participate in the SII reporting of data currently to the Spanish tax authorities, Agencia Estatal de Administracion Tributaria (AEAT), will similarly not be in scope, with limited exceptions.

The requirements in the draft Ordinance target three distinct areas- specifically:

• Computer system requirements, pertaining to specific computer security measures
• Content for billing records
• Specific invoice content requirements.

The draft Ordinance imposes some very specific security measures on billing systems, including the requirement for systems to facilitate an electronic signature and hash on billing records. These measures are motivated by the need to ensure that data cannot be modified post-invoice issuance, without leaving a clear record of the modification. Computer systems must meet very stringent technical standards, and the system must contain a compliance statement confirming that it adheres to these standards.

In line with the draft Ordinance, computer systems must also possess the ability to submit billing records in real-time to the AEAT. The requirement is currently optional and has not yet been mandated. Billing records are generated at the same time (or just before) as invoices and contain very similar information to the content in an invoice. The draft Ordinance includes the specific content required by law for billing records.

Computer systems will fall under the definition of a Verified Invoice System (VERI FACTU) if they continuously submit all records to the AEAT.

Finally, the draft Ordinance also prescribes the following specific requirements pertaining to invoice content:

• The requirement for invoices to be assigned with a sequential number
• The requirement to for invoices to include an identity code and QR code.
• Invoices must also explicitly state if they have been issued via a VERI FACTU system.

The draft Ordinance contains a significant amount of information, and it imposes some onerous technical requirements on impacted taxpayers.

Spain is a critical compliant territory for Tungsten Automation. Our compliance, Product, R&D and wider teams are collaborating to determine in what capacity we can assist our Spanish suppliers and buyers with the stringent compliance requirements outlined in the Ordinance.