SII

SII is Spain's scheme for keeping VAT books electronically and reporting them to the tax authority almost immediately.

Definition

SII is not a clearance model: the invoice is not validated before exchange. The taxpayer transmits, via XML web services, the entries of its statutory VAT ledger books (issued invoices, received invoices, capital goods, intra-Community transactions) to the AEAT within four business days. It is near-real-time transactional reporting, distinct from e-invoicing.

SII applies to large companies (turnover above EUR 6 million), VAT groups and REDEME registrants, among others. Other taxpayers may opt in voluntarily. Transmission uses certificate-authenticated SOAP web services. For each record, the AEAT replies "accepted", "accepted with errors" or "rejected". SII exempts taxpayers from informative returns 347 and 340 and, subject to conditions, from the annual VAT summary return (form 390). In the second half of 2017 a transitional deadline of eight business days applied. SII taxpayers are outside the scope of Verifactu.

Origin

Established by Royal Decree 596/2016 of 2 December 2016, amending the Spanish VAT regulation, and operated by the Agencia Tributaria (AEAT). Mandatory from 1 July 2017 for large taxpayers.

Example in context

A large Spanish group issues an invoice on Monday; it has until Friday (4 business days, excluding weekends and holidays) to push the corresponding entry of the Libro registro de facturas expedidas through the AEAT's SuministroLRFacturasEmitidas web service.

Related terms

• CTC — the family of transaction controls that includes near-real-time reporting.
• Clearance vs post-audit — SII sits between the two: reporting without prior validation.
• Verifactu — the scheme for companies outside SII.