The Spanish tax authorities have begun imposing penalties for non-compliance with Immediate Supply of Information (ISI) VAT reporting requirements, now that the legal framework for penalties is in place. Approximately 1,300 companies, or 2% of those required to comply, have not yet implemented ISI. Penalties include fines of 1% of annual turnover for complete non-compliance, 0.5% of invoices for late reporting, and €150 per unreported transaction. Authorities will also fine inaccurate, omitted, or false reporting by 1% of the erroneous amounts, with a minimum of €150 and maximum of €6,000.

1. Now that the tax authorities have a complete
legal framework, they are able to start the first
penalty procedures for non-compliance or for
incorrect compliance with the ISI.
• The tax authorities estimate that 2% of the
companies obliged to comply with the ISI
(about 1.300 companies) are not compliant
with the system yet. It could be understood that
that absolute non-compliance with the ISI
obligations is equivalent to the lack of keeping
the mandatory books that the tax regulations
require. The penalty amounts to 1% of the
turnover of the company of the fiscal year to
which the infringement refers, with a minimum
of EUR 600.
• The delay in preparing the VAT Book of issued
and received invoices through the Tax
Authorities electronic portal by supplying the
invoices records may result in a penalty of
0.5% of the invoice, with a quarterly minimum
penalty of EUR 300 and a maximum of EUR
6.000.
Spain VAT. First penalties regarding the
Immediate Supply of Information
It is deemed that there is a delay when the
information is supplied after the deadline
established by the ISI rules. That is, there is a
delay when the information is supplied after
the 4 days following the invoice issuance or
booking, with the limit of the 15th of the
following month.
For the application of the quarterly minimum
and maximum penalties, the aggregate
infringements per calendar quarter are taken
into account.
The delays regarding the Book of investment
goods and the Book of certain intra-EU
transactions are fined with EUR 150 per record.
• Mistakes or omissions of transactions are
fined with 1% of the inaccurate, omitted or
false data, with a minimum of EUR 150 and a
maximum of EUR 6.000.
The Tax Authorities have announced that they start to impose penalties for the non-compliance with
the Immediate Supply of Information on VAT (ISI).
The ISI entered into force last 1 July 2017, but the appropriate regulation of certain specific
penalties did not come into effect until 1 January 2018.
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Contact:
Lourdes Díaz-Barceló Caffarena
Tax Director
E: Lourdes.Diaz-Barcelo@es.gt.com
T: +34 91 576 39 99