Digital Invoicing in Spain Arrives for All Companies and Freelancers

The business world is constantly evolving, and digitalization has become a key piece for efficiency and transparency. In Spain, this transformation has gained significant momentum with the imminent mandatory digital invoice, a measure that will affect the vast majority of companies and freelancers. If you still have doubts about what this regulation implies, what the deadlines are, and how you can adapt, keep reading!

What is Mandatory Digital Invoicing and Why is it Important?

Mandatory digital invoicing is part of the "Crea y Crece" Law (Create and Grow Law), and its main objective is to modernize commercial relations, reduce late payments, and improve tax control. It is not just about issuing invoices in PDF format, but about using a system that allows for the standardized and secure issuance, reception, and communication of electronic invoices.

The benefits are clear:

• Greater efficiency: Automation of processes and reduction of errors.
• Cost savings: Less paper, printing, and postal shipping.
• Reduction of late payments: Greater control and agility in payment.
• Tax transparency: Facilitates the work of the Tax Agency.

Key Deadlines: Mark Your Calendar until January 2026!

The implementation of this regulation will be carried out in stages, depending on the size of your company. It is crucial to know the deadlines to avoid possible penalties:

• For companies with annual turnover exceeding 8 million euros: The obligation to issue and receive electronic invoices will come into force in January 2025.
• For other companies and freelancers: The obligation will begin during the year 2026.

Attention! These deadlines are indicative, and it is always advisable to consult the official publications of the Official State Gazette (BOE) for any updates or modifications.

Do I Need to Hire a Specialized Company or Can I Do It Through the AEAT?

This is one of the most frequent questions, and the answer has nuances.

The "Crea y Crece" Law establishes that companies must use electronic invoicing software that complies with the required technical and security specifications. The Tax Agency (AEAT) will make a public electronic invoicing solution available to small and medium-sized enterprises (SMEs) and freelancers. This means that, in principle, you will be able to comply with the regulations using the tools provided by the AEAT.

However, the following should be considered:

• AEAT Solutions: It is likely that the public solution will be functional and meet the minimum requirements. It may be a good option for those with a low volume of invoicing or very basic needs.
• Specialized Companies (Electronic Invoicing Software Providers): Hiring a specialized company can offer you significant advantages, especially if your business has a high volume of invoicing, needs integrations with other systems (accounting, ERP), or requires advanced functionalities such as project management, payment tracking, invoice customization, or dedicated technical support. These solutions tend to be more robust, user-friendly, and offer added value.
• 'Verified' Software (Compatible with VeriFactu System): The regulation also promotes the use of "verifiable" or "VeriFactu" computer systems that guarantee the integrity, preservation, and traceability of invoicing records, preventing data manipulation. Many software providers are already adapting their solutions to these requirements.

Our Recommendation:

Evaluate the specific needs of your business. While the AEAT option will be a valid starting point, a paid solution may offer you greater peace of mind, efficiency, and functionalities that allow you not only to comply with the law but also to optimize your company's financial management.

Preparing for Change:

The mandatory nature of digital invoicing is a reality. We recommend:

1. Inform yourself: Stay abreast of legislative developments.
2. Evaluate your options: Consider whether the public solution from the AEAT is sufficient or if specialized software would benefit you more.
3. Plan the implementation: Don't wait until the last minute. Adaptation can take time.

At our tax office, we are at your disposal to advise you on everything related to digital invoicing, resolve your doubts, and help your company comply with the regulations smoothly. Digitalization is an opportunity, not a threat!

By C.Fabri