Spain is building one of Europe's most comprehensive digital tax systems. New rules now require businesses to use certified invoicing software, report transactions in near real-time, and make every invoice traceable and tamper-proof. Whether you run a small business or a large company, these changes will affect how you issue and report invoices.
Spain has a significant VAT gap, the European Commission estimated Spain lost €6.8 billion in expected VAT revenues in recent years. Fraudulent invoicing and unreported cash sales are major reasons for this gap.
Italy introduced a similar mandatory e-invoicing system and closed its VAT gap by nearly 10% in just one year. Spain is following the same path, and the EU's VAT in the Digital Age (ViDA) reform is pushing all member states in the same direction.
Spain's digital tax framework is built on three overlapping systems.
The SII system is already in force for large companies. It requires businesses with an annual turnover above €6 million, VAT groups, and entities in the REDEME monthly refund scheme to submit invoice data electronically to Spain's tax authority (AEAT) within four working days of issuing or receiving an invoice. This applies to both sales and purchase ledgers.
One benefit for SII users: they are exempt from filing several additional forms, including the annual customer/supplier listing (Form 347) and the annual VAT summary (Form 390). The AEAT already has that data. Since 2020, SII data is also used to auto-fill quarterly VAT returns (Pre303), reducing manual work for businesses.
VERI*FACTU is Spain's new anti-fraud invoicing framework, introduced through the Anti-Fraud Law 11/2021 and technically defined by Royal Decree 1007/2023 and Order HAC/1177/2024. The goal is simple: make it impossible to manipulate or delete invoice records.
Who must comply:
All businesses using billing software that are not already covered by SII
Companies subject to Corporate Income Tax: mandatory from 1 January 2026 (with recent updates suggesting the final deadline may shift to 1 January 2027)
Self-employed individuals and SMEs not subject to Corporate Tax: from 1 July 2026 (or 1 July 2027 under the latest timetable)
Who is exempt:
Businesses already covered by SII
Those in the Basque Country and Navarre, which run their own regional systems (TicketBAI and Batuz)
Businesses that invoice manually without any software
What VERI*FACTU requires:
Each invoice record must be secured with a chained hash system (huella) that prevents changes after issuance
Invoices must include a QR code so customers and AEAT can verify authenticity online
Records must be transmitted to AEAT automatically and in real time if the business opts into the VERI*FACTU transmission mode
Software must include the label "VERI*FACTU" on qualifying invoices
AEAT offers a free invoicing application for small businesses and self-employed individuals with low invoice volumes
This is the broadest and most far-reaching reform. Law 18/2022 (Ley Crea y Crece) established that all business-to-business (B2B) transactions must use electronic invoices. The invoicing software must be authorised by the tax administration, and invoices must follow structured digital formats.
The rollout will be phased:
Large companies (turnover above €8 million): 12 months after the final technical rules are published. Currently expected no earlier than 2027.
SMEs and sole traders: 24 months after the same date, likely 2028.
The Spanish Ministry of the Economy ran a second public consultation in April 2025 on the draft Royal Decree. As of mid-2026, final technical specifications have not yet been published, so the precise start dates remain pending a Ministerial Order.
The new B2B system will use a Y-scheme model similar to France, with a central public platform (SPFE) and optional certified private service providers. Invoices will move from the older Facturae XML format to UBL (Universal Business Language), aligning with EU standards.
Spain's tax system is not uniform across all regions. The Basque Country and Navarre have their own tax authorities and their own digital invoicing rules.
TicketBAI is mandatory across all three Basque provinces (Álava, Gipuzkoa, and Bizkaia) and is expanding in Navarre. It requires businesses to send invoices directly to the relevant provincial treasury using certified software. In Gipuzkoa and Álava, 99% of businesses are already compliant. Bizkaia integrated TicketBAI into a broader system called Batuz, which also includes ledger reporting and pre-filled tax returns.
These businesses do not need to comply with VERI*FACTU or the national Crea y Crece B2B mandate, though the central government may seek harmonisation in the future.
Spain is serious about enforcement. The penalty structure is clear:
Businesses using non-certified invoicing software: fines up to €50,000 per tax year
Software providers selling non-compliant products: fines up to €150,000 per year
Invoice errors: fines of 1–2% of the transaction value; up to 75% for confirmed fraud
SII late reporting: administrative fines apply for late or missing submissions
Spain's reforms are not happening in isolation. The EU formally adopted parts of its VAT in the Digital Age (ViDA) package in March 2025. Key targets include:
By 2028: all EU cross-border B2B transactions must use e-invoices with real-time digital reporting
By 2030: domestic e-invoicing becomes the norm across all EU member states
Spain is already ahead of most EU countries thanks to SII and the planned B2B mandate. Its experience with large-scale real-time reporting puts it in a strong position as the EU pushes for broader harmonisation.
Not sure where your business stands? Get in touch with our team for a free consultation. We will map out exactly which obligations apply to you, when they kick in, and what you need to do to be ready.
