At the end of 2013, the Spanish Parliament certified the Law for the Promotion of Electronic Invoicing plus the Concept of an Accounting Register of Invoices in the Public Sector (Law 25/2013 of December 27, 2013). Its purpose would be to lessen the number of late payments by Public Administrations, which can impinge on enterprise funding, stop the negative impacts on employment and ensure its survival.
The innovative law will come into effect on January 15th, 2015 for all those who electronically file their tax statements, as the approval of the innovative law will require a revision of the work techniques and also the systems used in this area. Public Administrations together with private agencies are given twelve months, 2014, to add the new digital methodology into their activities.
The objective of Law 25/2013 is to protect providers and increase transparency and efficiency levels in processes managed by Public Administrations. As a result, the new legal ordinances will safeguard providers from latter payments, as all invoices are digitally licensed, and intensify the fight opposite to fraud, when all invoices pending for payment are registered and recognized.
The passing of this legislation promotes the usage of electronic invoicing in the private and public sector, because e-Invoicing is a tool that’s earning more prominence in the European Union through multiple laws. Specifically, in Spain, companies would be better guarded on their business oriented relations with Public Administrations through the creation of an Accounting Register of Invoices. This register is already compulsory and needs to be utilized by Public Administrations and suppliers to submit invoices; this assures that the entire invoice dates are properly accredited and will be included for accrual of interests on sums due.
Some of the key factors of electronic invoicing procedures underneath Law 25/2013 for the “Promotion of Electronic Invoicing plus the Conception of the Accounting Register of Invoices in the Public Sector” are:
1. As the law comprises a basic standard, this is obligatory for all those Public Administrations at a national, regional and community level.
2. The electronic invoice should be offered with a regulatory format and be signed with an innovative electronic signature or an advanced level electronic seal.
3. Accounting files of electronic invoices should be generated by the Public Administration body or unit answerable for accounting, after obtaining the invoices from the Accounting Register of Invoices. This fresh process for invoice administration entered into effect on January 1, 2014.
4. By rules and as from January 15, 2015, invoices for amounts under 5,000 Euros may be omitted from accounting documents.
5. The invoice processing status could be examined at any moment by the service provider who presented the invoice.
Because of the innovative Law 25/2013, Spain is moving towards a general electronic law reinforcement and control that means that the entire use of this electronic signature and electronic documentation is on the rise.
As mentioned in one of our recent blog posts titled ” Electronic Invoicing in 2013 “, European Directive 2010/45/EU determines that paper and electronic invoices are alike legally & fiscally. In reality, the European Commission intends to insure frequent utilization of electronic invoices in European countries by year 2020.