The document discusses the Spanish Tax Agency's perspective on the new VAT legislative framework for electronic invoices. It outlines how the Tax Agency has been accepting digitally signed tax returns and invoices from suppliers since 1998. It also details how the Tax Agency works with other groups to define standards like an XML format for electronic invoices. Both parties in a transaction need proof of authenticity, integrity, and legibility of electronic invoices according to the new regulations. Electronic invoices must be stored in a way that ensures the conditions for authenticity of origin and integrity of content.

1. The new VAT legislative framework
for electronic invoices: A Tax
Agency´s point of view
28/ 04 / 2010
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2. The Spanish Tax Agency: An
active role
•The Spanish Tax Agency has been accepting digitally signed tax returns
since 1998
•The Spanish Tax Agency accepts digitally signed invoices from its
suppliers
•In conjunction with the Spanish Banking Association and the Ministry
of Industry the Tax Agency has defined an XML format that meets both
fiscal and banking requirements
•The Spanish Tax Agency participates in several inter-departmental
working groups to foster the use of electronic invoicing in the Public
Sector
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3. Deductible expenses for tax
purposes: New text
KIND OF BUSINESS PROFIT •Expenses are necessary for conducting a
ACTIVITY ENGAGEMENT trade or business
•Advanced digital signature
•EDI based on Recomm. 1994/820
AUDIT TRAIL •B. controls based performance
MATERIAL CORRECTNESS •Actual on reliable audit trials
•Other means
•Match against the
FORMAL CORRECTNESS: DEEPER AUDIT
j
resulting accounting
INVOICE transactions
•Authentic supplier
FORMAL CORRECTNESS: DESK PROCEDURE
•Correctness of VAT
•Unchanged transaction treatment
details •Supporting document
•Legibility
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4. Delegación Central de Grandes Contribuyentes

5. Business controls based on
reliable audit trails
Audit trail: Chronological sequence of audit records each of
which contains evidence directly pertaining to and resulting
from the execution of a business process
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6. Audit
Business process 1 Generates
record 1
Gives
evidence
Audit
Business process 2 Generates
record 2
•Audit records
= Audit trail
Gives
evidence
Audit
Business process 3 Generates
record 3
Gives
evidence
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7. Procurement Process
Requisition
Approval of a requisition
Information
Order submission System
ERP
Reception of an order confirmation
Update
Receipt note processing
Invoice reception Audit records
Approval of an invoice
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Delegación

8. Both parties need proof
(Art. 233)
Each taxable person shall determine the way to ensure the authenticity
of the origin, the integrity of the content and the legibility of the invoice
The ways chosen by each party can be different
The three-way match may provide evidence for the purchaser but not for
the supplier
The supplier can sign or have a third party sign on its behalf, while the
recipient bases its evidence on business controls
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9. Storage
(Art. 247)
In order to ensure that the conditions laid down in Article 233 are met,
the Member State referred to in paragraph 1 may require that invoices be
stored in the original form in which they were sent or made available,
whether paper or electronic
Additionally, in the case of invoices stored by electronic means, the
Member State may require that the data guaranteeing the authenticity of
the origin of the invoices and the integrity of their content, as provided
for in Article 233, also be stored by electronic means
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10. www.agenciatributaria.es
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