In Spain a new VAT reporting system will enter into force on the 1st of July 2017. The new Spanish requirements will have a huge impact on many (multi)nationals that run SAP.
SII (“Suministro Inmediato de Información”) in Spain is about changing the current VAT reporting system which has been in place for over 30 years. It is introducing a new reporting system for VAT by providing all VAT relevant billing records almost real-time to the AEAT online system. The new Immediate Supply of Information reduces the gap between recording or booking invoices and the actual reporting to the tax authority. It is introduced because the current technological situation allows its implementation at this time, to improve both taxpayer assistance as taxation controls (e-tax audits).
We developed a SAP add-on solution by which the e-submission of the required data from AR and AP invoices is fully integrated in SAP without an external interface or use of external software. With this add-on the submission of the requested invoices can be done automatically and in time. Our SII for Spain is ready and functionality can be demonstrated via our own SAP environment.
The SAP add-on is based on the selection of the VAT relevant transactions from the SAP ledgers. This can be done manually with a new SAP transaction or in an automated way via scheduled batch jobs. The SII relevant data from the selected source transactions are stored in a new customized SII table. That single source ensures your data integrity and consistency. There will be no need for maintenance of multiple systems as it will all be maintained in SAP itself. All reportable SII data are available via a single SAP cockpit which enables easy (tax risk) management of the SII reports.
The cockpit provides the following functionality:
- Display data from e-document in user friendly format
- Display both header and line item data (invoice breakdown)
- Display XML data on screen
- Drill down to source transactions in SAP
- Display audit trail and e-document status
- Store approval key (CSV) from tax authority
- Implementation of approval workflows
- Option to logical deletion of e-documents (for example for canceling / reposting of AP invoices in SAP due to posting errors)
- Upload from excel for non-standard transactions/reports, like real estate where not all required data are available in SAP
- Send SII XML file (envelopes) to Tax authority (AEAT) with option for complete automated e-submission process
Overview of the SII process in the SAP 'SII' add-on
Generic Add-on characteristics
The integrated SAP e-invoice/SAF-T solutions have the following characteristics:
- Fully integrated in SAP without an external interface or use of external software
- SAP release and upgrade independent; implemented without core modification
- Globally registered namespace for all objects
- ABAP is the programming language, English is the product language
- Installation done simply by external transport file
- All developments under a package
- XML data stored in tables
- Compatibility – working with XI/PI or e-invoice integrators
- Standard SAP functionality (variants, selection screens etc.) available
- Standard SAP authorization used
- User-friendly screens
- Own customized tables
- Own transaction codes and menus
FAQ Spain - Immediate Supply of Information (SII)
Published by Richard Cornelisse
Richard advises multinational businesses in improving the efficiency and effectiveness of their Indirect Tax Function and Tax Control Framework.
He started his career as a manager at Arthur Andersen and then became a partner in EY where I led the indirect tax performance team for Netherlands and Belgium. Currently he is a senior managing director of Phenix Consulting.
Richard has over 20 years’ experience advising clients on international VAT issues. He is specialized in the tax aspects of financial transformations, shared service centre migration, and post merger integration work. Richard is also somewhat of a mentor, giving back to the profession. If you are interested in conversation and discussion, please feel free to contact him.