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Immediate Supply of Information (SII)

Digital transformation is a reality. In just a few years we have seen how new technologies have revolutionized the way in which organizations interact, communicate and develop their economic activity. In this sense, the tax administrations could not be left behind and their response has been the Immediate Supply of Information (SII).

The SII arises from the need to streamline VAT management processes, adapting it to the digital environment. The digitization of taxes will also make it possible to fight fraud more effectively.

What is the Immediate Supply of Information (SII)?

The Immediate Supply of Information (SII) is the new Tank handling framework, created by the Assessment Organization (AEAT), for the electronic administration of the Worth Added Expense record books.
This new framework requires the arrangement of data connected with charging records (gave and got) through the Electronic Office of the Duty Organization inside a most extreme time of four days, including worked on solicitations. The term will be stretched out to 8 days for those associations whose solicitations are given by an approved outsider.

For which companies is the SII mandatory?

In a first phase, the new SII system will be mandatory for those organizations that currently have the obligation to self-assess VAT on a monthly basis:

• Large companies (turnover of more than 6 million euros).
• Companies registered in VAT groups.
• Companies registered in the VAT Monthly Refund Regime (REDEME).
• All those companies that voluntarily decide to join this new telematic VAT management system.

When did the Immediate Provision of Information come into force?

The Immediate Supply of Information system entered into force on July 1, 2017. The billing records corresponding to the first semester of 2017 must be sent to the Tax Agency before January 1, 2018, except for those companies that in 2017 are presenting the model 340, which are not required.

In the case of the Provincial Estates (Bizkaia, Araba, Gipuzkoa and Navarra), the entry into force of the SII was on January 1, 2018.

How must the information be sent to the SII?

• Electronically, through Web Service from the billing system itself, based on the exchange of XML messages.
• Taxpayers with few operations will be able to report through a web form.

The 8 advantages offered by the Immediate Supply of Information (SII) to organizations

1. Simplification and reduction of formal obligations. Models are removed:

• 347: Annual declaration of operations with third parties.
• 340: Informative declaration of operations included in the registry books.
• 390: Annual summary of VAT.

2. The organizations registered with the SII have 10 more days to present the declarations. Taxpayers included in the SII may submit periodic VAT self-assessments during the first 30 calendar days of the month following the settlement period, instead of the current 20 days, or during the month of February, in the case of the monthly settlement of January.

3. VAT refund procedures are streamlined. By obtaining information on the operations practically in real time, the Tax Agency can anticipate the checks and thus speed up the refund procedures.

4. Bidirectional model. The AEAT issues an acknowledgment or response message confirming the receipt of each return, being notified of possible errors and having the option of correcting them through the system with ease.

5. Fiscal contrast data. Taxpayers have a “declared” record book and another “verified” record book at the Tax Agency’s Electronic Headquarters, with information from third parties.

6. Organizations will be able to access their tax data at all times, in digital format.

7. Errors in completing tax obligations are reduced.

8. Modernization, digitization and standardization of the keeping of the VAT Registration Books.

How can we help you?

Deloitte offers, through its SII solution, a system that centralizes all communication with the Tax Agency (AEAT), making available to the client an expert team in the management of indirect taxes and business experts to review the impact on the processes.

The 10 benefits of the solution offered by Deloitte (D-SSII)

• Centralized system, without the need to use several platforms for compliance with regulations. The tool provides different roles and permissions depending on the responsibility of the different managers.
• Secure communication with the AEAT through certificates and HTTPS.
• Transformation of the information obtained according to the format required by the standard, through small custom developments, if necessary.
• Traceability of the information shared with the AEAT. The application offers the possibility of generating reports with graphs for tracking SII errors, as well as statistics of the information sent.
• Solution adapted to the volume of information to be managed by SII requirements. This approach allows resources to be adapted to the transactional levels of the business at all times.
• Variable cost depending on use. D-SSII On Cloud is a service billed in a SaaS model (Software as a Service). The cost for the client is adapted to the use of the solution depending on the inbound and outbound incidents with the AEAT.
• contingency approach. The solution provides a BPO (Business Process Outsourcing) service that prevents the client from having to subtract important internal resources from the organization for the start-up and stabilization of the company’s regulatory compliance.
• Reduced investment. By adapting the cost to use, this solution has lower initial investment requirements, reducing the impact on cash flows.
• Experience in Data Exchange solutions. The composition of the Deloitte team in charge of the Managed Cloud Service is made up of qualified professionals with extensive experience in administrative processes and filing taxes before the AEAT.
• The information manager performs the complete structural and syntactic validations of the header of the New XML received. All those erroneous invoices registered in the system can be modified from the application itself.

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The post Immediate Supply of Information (SII) first appeared on NAZING written by Olivia Bradley