The revised 2011 Tax Compliance Country Guide V41 includes an updated chapter for Spain and updates related to AN49 and AN49SPs. As with previous versions, this chapter was written and signed by KPMG. Our re-investigation of Spain was primarily driven as a result of the support of withholding tax in our forthcoming software release.
According to KPMG, you may find further statutory information at the following web sites:
What is interesting about Spain is the following:
• Qualified electronic signatures are the preferred mechanism for guaranteeing the authenticity and integrity of electronic invoices in Spain (along with EDI). As an alternative, advanced electronic signatures may be used, but only if the electronic certificate on which the advanced electronic signature is based has been previously approved by the STA or it is capable to generate a qualified electronic signature, pursuant to the provisions set out in paragraphs 6 and 10 of article 2 of the EU e-signature Directive 1999/93/CE. NOTE: This highlights an important differentiator for Ariba over EDI solutions when it comes to involving tax authorities in a Spanish implementation of an e-Invoice solution.
• Withholding Tax: According to Spanish tax rules, there is the obligation applicable to taxpayers to withhold an amount in account of the Personal Income Tax (IRPF) of its supplier. Notwithstanding this, there is no rule on the Spanish invoicing regulations that obliges to the suppliers (individuals) of professional services that are PIT taxpayers to include a specific mention about the withholding to be made by the business recipient of the invoices but it is a best practice of common implementation in Spain. NOTE: This highlights the difference between common practices vs. legal requirements. From a legal perspective the most important aspect of the new withhold tax feature is to preserve the definition of “Total invoice amount without VAT”, “Total VAT amount”, “Total Amount with VAT” within the Ariba application. With a service such as Ariba, it is equally important to address regional and country specific business practices as well as actual legal requirements to maximize the global penetration of our solution.
• e-Invoicing rules for the Canary Islands: Spanish invoicing regulations approved by the Spanish Royal Decree 1496/2003, and subsequent development rules about electronic invoicing, are also applicable to the General Canary Islands Indirect tax taxpayers in equivalent terms that are applicable for VAT payers. NOTE: There are different taxes that apply in this region; however, they do not relate to the legal e-Invoicing requirements. We recommend that you work with our services organization to configure the system to address the General Indirect Tax of the Canary Islands (IGIC).
If you are interested in e-Invoicing in Spain, please contact your Ariba representative for the latest version of Ariba's Country Guide.