The system for collecting value-added tax (VAT) in the European Union has always had its critics. When the European Commission announced its VAT action plan in 2016, part of their stated ambition was to make the current EU VAT system simpler to use and, as a result, more business-friendly.
The Spanish government is responding to the challenges of the Commission's action plan by further strengthening measures to reduce the VAT gap by applying a strategy to modernize VAT administration, through the introduction of a new system incorporating the "Immediate Supply of Information" (SII). SII is another key step in the process of continuous improvement the Spanish authorities are undertaking. The mission involves upgrading systems and creating the system of the future. The government's intention is to improve the information they gather, both to gain more effective control of the system and to focus on generating more revenue.
In this whitepaper, Jaume Carol, Senior Manager Customer Solutions, breaks down who will be affected and what needs to be considered when selecting a financial management solution.