The electronic invoice has revolutionized the way in which companies issue and manage their invoices. With the automation of processes and the elimination of paper, the electronic invoice offers benefits such as cost reduction, administrative efficiency and the simplification of procedures.
But it's important to be aware of the tax and legal regulations surrounding its use, especially when it comes to billing software.
Electronic invoice: concept and benefits
It is a billing modality that is done digitally, using an electronic format and complying with technical and legal requirements that are already established by tax regulations. Among the benefits offered by the electronic invoice are:
- Cost reduction: Electronic invoicing eliminates the need to print, mail, and file paper invoices, reducing the costs associated with these processes.
- Process simplification: Automating the generation, sending and receiving of electronic invoices streamlines billing processes and simplifies administrative management.
- Improvement in efficiency: allows a more precise follow-up of invoices issued and received, which facilitates the reconciliation and control of commercial operations.
- Help the environment: it reduces the consumption of paper and energy, so it has a favorable impact on everyone.
Billing software: functions and regulations
Billing software is a tool that facilitates the issuance of electronic invoices and manages the processes associated with billing. Among its main functions are:
- Generation and sending of invoices. The billing software allows you to create electronic invoices with all the necessary data and legal requirements, and send them by email or through electronic exchange platforms.
- Customer and product management. Thanks to this tool, you can keep a record of customers and products and/or services offered by the company, which facilitates the generation of invoices and inventory management.
- Reports generation. It also generates reports and records of issued and received invoices, which helps to keep proper control of business operations.
However, it is important to take into account the legal regulations that apply to billing software, especially in relation to anti-fraud law and other tax regulations. The anti-fraud law establishes specific restrictions and obligations for billing programs, with the aim of preventing tax evasion and the misuse of false or altered invoices.
Dual-use software: what is it and how does it affect electronic invoicing?
Dual-use software refers to software that can be used for both legal and illegal purposes, including fraudulent activities or tax evasion. Dual-use software are digital tools that allow businesses to keep parallel accounts. For years now, the Tax Agency has been pursuing the use of these programs, therefore using them can have negative legal and tax consequences, such as significant sanctions that can even mean the suspension of commercial activity.
It is important to note that the use of this software in the issuance of electronic invoices is illegal and is strictly prohibited by tax law. Therefore, it is essential that invoicing software that complies with all regulations and legal requirements set forth by the regulations is used, to ensure that valid and legal electronic invoices are being issued.
Comply with tax regulations: how to do it?
These are some recommendations to ensure compliance with tax regulations in relation to electronic invoicing and software approved by the Administration:
- Use certified billing software: This type of software guarantees that the electronic invoices issued comply with all the legal requirements established by tax regulations.
- Update with current tax legislation: Tax regulations in relation to electronic invoicing can change over time, so it is essential to keep up to date. This includes being aware of the obligations, restrictions and requirements established by the anti-fraud law or other tax regulations, and ensuring that the billing software used is aligned with such regulations.
- Verify the provenance and reliability of the software: It is important to purchase billing software from trusted and reputable vendors who have the appropriate licenses and certifications. In addition, it is essential to verify the provenance of the software and ensure that it has not been illegally altered or modified.
- Get professional tax advice: this can be of great help to ensure compliance with tax regulations regarding electronic invoicing and dual-use software. A tax adviser can provide specialized guidance, legal advice and keep the company up to date on changes in tax regulations.
Mandatory electronic invoice in Spain
With Law 18/2022 "Create and grow" came new features in the billing model and with the new electronic billing regulation, about to be approved, this will be mandatory for all businessmen.
Once the new electronic invoicing regulation is approved, it will be implemented in two phases:
- For companies with a turnover of more than eight million euros per year, it will be mandatory one year after the approval of this standard.
- For the rest of the companies and freelancers, after two years.
Most likely, for the new electronic invoices, new billing programs will be needed and therefore you will have to invest in new software that will have to comply with the new regulations. These programs, in order to comply with the regulations, must keep a record of everything that is done, this record cannot be deleted and the Tax Agency can verify it whenever it wants.
Remember that to invest in the digitalization of your company you can request the public subsidy known as a digital kit.