The Electronic Invoicing Law, known as the “Ley Crea y Crece,” is a government tool for digitalizing the business invoicing system in Spain. Its implementation aims to improve fiscal transparency, reduce fraud, and simplify administrative processes.
It is expected that a new Regulation will be published in 2025 within the framework of Ley Crea y Crece, including various provisions on electronic invoicing. From its entry into force, companies and self-employed professionals will have one or two years, depending on their turnover, to adapt to this legal framework that sets the mandatory use of digital technologies. This change presents both challenges and advantages for all stakeholders.
Why was an electronic invoicing law created?
The reform is based on the urgency to modernize a system that, in its current state, has clear limitations and hinders proper auditing. The new measure is part of the Ley Crea y Crece, approved in 2022, and aims to strengthen the business sector by improving its competitiveness.
In addition, the government aims to promote digitalization among small and medium-sized businesses, a critical part of the economy that often faces problems due to a lack of proper technological resources.
Current problems in invoicing management
Limitations of the traditional invoicing model
The traditional invoicing system still depends on manual and paper-based processes. This increases management times, delays accounting, and exposes businesses to human error.
Moreover, the use of less advanced tools limits business capacity to meet international digitalization standards and makes it harder to adapt to new regulations.
How lack of digitalization affects companies and self-employed professionals
- Loss of efficiency in everyday management.
- Increased risk of penalties due to document errors.
- Difficulties competing in more automated markets.
Previous insufficient initiatives: anti-fraud law and its scope
The anti-fraud law sought greater regulation of tax matters, but its impact was limited in terms of simplification and digitalization. Without a more advanced regulatory model, informality and irregularities in invoicing processes continued to spread.
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Urgency to adapt to the new regulations
Impact of delay in digital implementation
Delaying the adoption of these measures may result in higher operational costs for companies. Moreover, those not adapting in time risk facing fines and losing opportunities in a more competitive market.
Specific obligations companies must comply with
Integration of technologies such as QR codes and time tracking
The regulation requires integration of elements such as QR codes on invoices, which enhances traceability of operations. In addition, implementation of time tracking systems is encouraged for more detailed records of economic transactions.
Stricter audit by the Tax Agency
With this law, the Tax Agency will have stronger tools to detect irregularities. This includes the capability to monitor electronic invoicing records in real-time and verify their proper issuance.
Consequences of non-compliance: penalties and financial risks
Companies failing to comply with the regulations will face penalties that may vary depending on the size of the infraction. They may also be excluded from operating with clients who require adherence to the new regulations.
The new electronic invoicing law: solutions and adaptations
The regulation presents an opportunity to improve business competitiveness through digitalization. Companies have several technological options to fulfill administrative requirements.
Understanding the technical details and planned implementation phases is key to avoiding obstacles and leveraging the advantages of the new system.
Key points of the regulation and main changes
Objectives of the Ley Crea y Crece
This law has as its main objectives reducing tax fraud, preventing the use of fake invoices, and increasing commercial transparency. It also encourages adoption of modern technologies across all sectors.
Regulation details: technical developments and requirements
Effective date and stages of implementation
A new Regulation detailing all legal aspects of Electronic Invoicing is expected to be published in 2025. Its rollout will be phased, according to company size. Large corporations with sales over 8 million euros annually will be the first to adapt, followed by SMEs and the self-employed.
It is important to note that the obligation to invoice public administrations electronically has been in force since 2015, applying to both companies and self-employed professionals.
Differences compared to previous regulations
- Mandatory inclusion of advanced digital systems.
- Increased supervision by tax authorities.
- Faster return in financial and administrative benefits.
Implementing electronic invoicing for compliance
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Available solutions for businesses and the self-employed
There are many tools on the market to facilitate this transition. From invoicing software to cloud service platforms, these options allow process automation and ensure regulatory compliance.
Process improvements through training and digitalization
Training staff to use new technologies is essential to maximize the benefits of the new system. The initial investment in training results in a faster and more efficient management.
Lasting benefits from using electronic invoicing
Efficiency in financial management
With more automated processes, companies save time and reduce operating costs. Digitalized data also allows more informed, faster decision-making.
Reduction of errors and greater document control
- Minimization of errors in invoice issuance.
- Improved access and tracking of financial documents.
- More organized management during audits.
Advances in combating tax fraud
Transparency and strengthening of business relationships
The traceability of operations strengthens trust between clients and suppliers. This facilitates new business opportunities by aligning with international standards.
Common questions about the law and its implementation
Which companies are required to comply and from when?
The law will affect all companies and self-employed professionals operating in Spain. Large companies will be the first to adapt a year after the Regulation is published, while the rest must comply in the subsequent year.
What tools are necessary to comply with the law?
Compliance requires invoicing management software compatible with the regulation, secure storage platforms, and communication systems with the Tax Agency.
How is Verifactu related to the regulation?
Alongside the Electronic Invoicing Regulation, the Verifactu regulation will be implemented, requiring invoicing software to comply with specific computer standards designed to prevent tax fraud.
Verifactu will be an essential tool for the secure issuing and receiving of electronic invoices. Its use ensures compliance with the required technical standards.
Looking ahead: the impact of electronic invoicing beyond 2025
Digitalization is not just a short-term requirement but a trend aiming to transform the business ecosystem globally. Electronic invoicing will be key to this change.
The path set by these regulations points towards a complete evolution of the financial model in the long term.
The government’s goal of full digitalization
Full integration of Verifactu and forecasts for 2025
By 2025, the goal is for all commercial operations in Spain to start following a unified digital system. This will enable effective integration with other European tax systems.
Long term changes in the financial and legal landscape
Adopting electronic invoicing will not only modernize business management but will also contribute to the development of a more transparent and sustainable commercial environment.
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