How VeriFactu and 'Crea y crece' law affect billing software companies in Spain

What are the new ‘Crea y crece' law and Veri*factu?

In the last few years, legislation regarding taxation and invoicing in Spain is taking a big step forward with several main objectives:

• the digitalization of businesses and the public sector
• improve transparency and prevention of tax fraud
• combating late payments
• aligning national legislations with international regulations

In this regard, there are two new major legislations introducing new challenges, not only for companies and professionals but also for the independent software vendors and software developers in charge of invoicing and taxation. We are talking about the new Anti-fraud and Crea y crece laws, whose implications for software companies and ISVs (independent software vendors) are extremely relevant, because both regulations are expected to become mandatory for them in 2024.

New Anti-fraud law in Spain

In order to avoid the manipulation of the invoicing and accounting of companies in Spain, the Anti-fraud Law 11/2021 of July 9 promotes measures to prevent and fight against tax fraud. It states that the invoicing software must prevent the modification and destruction of the records in the invoicing process and that they must send all the invoicing records to the national Tax Authorities (AEAT).

Likewise, it establishes the conditions to be met by the said anti-fraud software or Veri*factu software, which must be used by companies and professionals when issuing ordinary and simplified invoices in accordance with the new regulations. The word Veri*factu refers to "Verifiable invoice in the electronic office of the AEAT", in Spanish: “factura verificable”. 

New Crea y crece law in Spain

On the other hand, Law 18/2022, of September 28 on the creation and growth of companies, commonly known as the 'Crea y crece' law, aims to promote digitalization, fight against late payments among companies and self-employed workers and improve business management through the implementation of electronic invoicing. Therefore, all companies and professionals will have to adjust or migrate their invoicing systems to electronic invoicing or e-invoicing. No more invoices in Excel or other traditional formats will be anymore accepted in B2B transactions in Spain. 

How do the 'Crea y crece' law and Veri*factu affect billing software companies?

One of the main points shared by both regulations is that they extend the obligation of the adequate application of the law to software developers and ISVs. Does this make sense? Absolutely. If the software is designed and developed to prevent fraud and late payments and, from now on, companies and freelancers will need to invoice and control their taxation through one of them: problem solved!

But here comes another of the biggest changes: the billing software is not only required to operate in compliance with the regulations, but it is also responsible for the correct use of the software. In other words: if it is proven that a taxpayer has committed tax fraud, the new Anti-fraud law states that the corresponding fines will be applied both to the taxpayer (company or self-employed professional) and to the company responsible for its invoicing software.

That is why it is particularly important to understand the regulations in detail and to ensure that the software development is not only 100% compliant with VeriFactu and the 'Crea y crece' law, but also that it is constantly updated in accordance with the regulations, as we guarantee with our fiskaly SIGN ES solution.

Another requirement for software companies (or SIF, according to the acronym "Sistemas Informáticos de Facturación" - computing billing systems, as they are called in the Anti-fraud law) is to be certified by the AEAT (Spanish Tax Agency). This registration verifies that the software works in accordance with the regulations and that it can officially submit the taxpayer's information to the corresponding authorities immediately, ensuring the integrity and inalterability of the records.

In the case of the Crea y crece law, it is essential for companies and ISVs of invoicing systems to ensure the correct connection to the public e-invoicing solution, where the invoicing records of taxpayers will be sent.

When do the 'Crea y crece' law and Veri*factu come into force and when do the billing software companies have to implement them?

Although the definitive technical requirements of both regulations were expected to be published during the first half of 2023, only the drafts have been made available. In addition, in both cases a public consultation period was opened where all the parties involved had the opportunity to present allegations and proposals for improvement. 

Anti-fraud law implementing timeline

Regarding the Anti-fraud law (Verifactu software), software companies and vendors will have a maximum of 9 months to comply with the new law from the date of entry into force of the Ministerial Order that will develop the Technical Regulation. The latest draft published indicates that, at the latest, the date of adaptation of the software to the regulations will be July 1st 2024, date on which taxpayers will be able to comply with this new regulation and start invoicing in accordance with it. It should be noted that the Anti-fraud law and, therefore, the requirements of the Verifactu software will affect all activities carried out in Spanish territory (with the exception of the Basque Country, which is covered by the TicketBAI regulation) and will coexist with the SII (Immediate Supply of Information).

Crea y crece law implementing timeline

On the other hand, the Crea y crece law states that "the Ministries of Economic Affairs and Digital Transformation and of Finance and Public Function, within the scope of their competencies, shall determine the technical and information requirements to be included in the electronic invoice for the purpose of verifying the payment date and obtaining the average payment periods, the minimum interoperability requirements among the providers of technological solutions for electronic invoices, and the security, control and standardization requirements for the devices and computer systems that generate the documents. [...] The term for approving these regulatory developments shall be six months as from the publication of this law in the Official State Gazette (BOE). [...] Prior to the approval of the regulatory development, the Government shall open a period of public exposure of the regulation governing electronic invoicing, for the purpose of submitting allegations by interested parties".

That public consultation period was opened in March and again in July 2023 and we are currently awaiting the final approval of the regulatory development, which is expected to be published before the end of the summer of 2023. The compliance obligation for taxpayers will be 1 year from the approval of the regulation for companies with a turnover of more than 8 million euros, and 2 years for the rest of companies and self-employed professionals. Therefore, it is expected that in the summer of 2024, large companies will already be using electronic invoicing on a mandatory basis in B2B transactions. In this case, no specific implementation period was specified for billing software companies, other than the one proposed for big companies.

Which kind of software will be affected by the 'Crea y crece' law and Veri*factu? 

The Anti-fraud law refers to the billing software through the definition of SIF, for its acronym: Sistema Informático de Facturación (computerized billing system in English). A SIF is considered to be the set of hardware and software used to issue invoices, performing the following actions:

• Allow the entry of billing information.
• Storage of the invoicing information, either by storing it in the computerized invoicing system itself, or by means of its output outside the system on a physical medium of any type and nature, or through telematic transmission to another computerized system, whether or not it is an invoicing system. 
• Processing the billing information through any procedure to produce other derivative results, regardless of where this process is carried out, being able to be in the billing computer system itself or in another computer system after sending the information to it by any direct or indirect way.

Meanwhile, the "Crea y crece" law defines an obligation that all "computer or electronic systems and programs that support the accounting, invoicing or management processes of those who develop economic activities, should guarantee the integrity, conservation, accessibility, legibility, traceability and inalterability of the records, without interpolations, omissions or alterations that are not duly noted in the systems themselves". Several technical specifications are established for software, and they are required to be properly certified. 

Therefore, if you are an ISV or a billing software developer, both laws will affect the way you work, communicate and implement your service to your customers. From fiskaly, we not only help companies and professionals with their fiscalization, but we also offer support and service to other software developers, POS vendors and ISVs with the fiscalization part of their businesses. Our SIGN ES solution complies with these two new legislations, as well as with TicketBAI (the counterpart program to VeriFactu in the Basque Country region of Spain). By working with fiskaly, you ensure that your software will always be up to date by integrating one single API.