Get Ready for New Invoicing Rules in Spain: What You Need to Know for 2025

If you're doing business in Spain, important changes to how invoices are created, shared, and managed will soon take effect. Two key systems, Veri*Factu and Electronic Invoicing, aim to increase transparency, fight fraud, and reduce late payments. These changes will affect businesses of all sizes. Here's what you need to know to stay compliant.

1. What is Veri*Factu?

Veri*Factu is a fiscal requirement established to fight tax fraud under Spain’s Law 11/2021. It regulates the software and systems used for invoicing and accounting. Starting in 2025, your invoicing tools must meet strict requirements to ensure data is:

• Unchangeable (no edits after the invoice is created),
• Traceable (complete record of every action), and
• Readable and Accessible (easy for tax authorities to review).

Failure to comply could result in hefty fines:

• €150,000 per year for software providers or sellers offering non-compliant tools.
• €50,000 per year for businesses using software that doesn’t meet these standards.

To comply, businesses need to adopt approved invoicing systems that meet these requirements. Tools like Excel or Word without advanced integrations won’t be enough.

Who Must Comply?

Veri*Factu applies to:

• Businesses paying Corporate Tax,
• Sole traders or professionals paying Income Tax, and
• Foreign companies with a permanent establishment in Spain.

Exceptions:

• Businesses already using Spain's electronic VAT reporting system (SII).
• Certain sectors like agriculture and fisheries under specific VAT regimes.

Key Deadlines for Veri*Factu

• Large businesses must comply by January 1, 2025.
• Smaller businesses have until July 1, 2025.

2. What is Electronic Invoicing?

Electronic Invoicing, governed by Law 18/2022 (Crea y Crece), focuses on reducing late payments between businesses. It requires all invoices between companies to be issued and exchanged digitally through interoperable platforms.

What Does It Mean for Businesses?

• All companies must issue, send, and receive invoices electronically when dealing with other businesses.
• Electronic platforms must be free to connect and compatible with others.
• Businesses must also track and report the payment status of invoices.

Electronic Invoicing Deadlines

Although the exact regulations are still being finalized, here’s what to expect:

• Businesses with over €8 million annual turnover must comply 1 year after the regulations are approved.
• Smaller businesses will have 2 years to comply after approval.

At the earliest, these rules could take effect in 2027 or 2028, so there's still time to prepare.

What Should You Do Now?

1. Assess your invoicing systems: Ensure they meet Veri*Factu requirements or plan for upgrades.
2. Prepare for digital invoicing: Start transitioning to electronic invoicing if you haven’t already.
3. Work with your accountant or legal advisor: Make sure you’re fully informed about how these rules affect your business.
4. Act early: Avoid penalties by upgrading systems well before the deadlines.

By staying ahead of these changes, you’ll ensure compliance and avoid costly penalties. Start preparing now to make the transition smooth and hassle-free!