Spain Plans Immediate Reporting To Help Close VAT Gap

According to recently-published European Commission studies, the VAT gap in Spain has been decreasing, although at more than EUR10bn the difference between VAT paid and VAT that should be paid is still significant compared to other EU Member States. 

The Spanish government was urged to find a solution which will stop the VAT leakage from the financial system, and so tax authorities introduced a new strategy to modernise VAT administration through the new system of 'Immediate Supply of Information' (S.I.I.). While the new rules are still at draft Royal Decree stage and pending approval, the authorities ideally want this to be effective in 2017, so taxpayers should start assessing all information related to implementation to ensure compliance with new VAT rules.