Mandatory Electronic Invoice

What is the Mandatory Electronic Invoice?

The electronic invoice represents a digital document equivalent to traditional paper invoices. Its main distinction lies in the method of issuance, using IT systems that ensure essential characteristics such as legibility, authenticity, and content integrity.

Since 2015, municipalities and other public entities are required to use this format in their relationships with suppliers. With the implementation of the Crea y Crece Law, this obligation now extends to commercial relationships between companies and professionals.

Mandatory electronic invoicing will begin with companies that invoice more than eight million euros per fiscal year, gradually extending to cover all SMEs and freelancers in Spanish territory.

Characteristics of the law that introduces mandatory electronic invoicing

Law 18/2022, of September 28, known as the Crea y Crece Law, establishes a regulatory framework aimed at simplifying business creation and combating late payments in Spain. This legislation introduces the mandatory electronic invoice as a mechanism to improve payment traceability and management.

Among the main characteristics of this regulation is its alignment with the Recovery, Transformation, and Resilience Plan, leveraging European Next Generation funds. The law is structured in accordance with European Union guidelines for economic modernization.

The Ministry of Economy together with the Ministry of Finance oversee the implementation of this regulation that substantially modifies the Spanish business landscape. A significant change is the reduction of the share capital required to establish limited liability companies to just one euro, bringing Spain in line with other European countries.

The implementation of this law requires specific regulatory development that complements previous regulations such as:

• Law 56/2007, on Measures to Promote the Information Society
• Law 25/2013, on promoting electronic invoicing
• Royal Decree 1619/2012, on invoicing obligations

In the tax area, mandatory electronic invoicing facilitates:

Tax regulations are reinforced with these electronic mechanisms that guarantee greater transparency in commercial transactions. The developed regulation establishes gradual implementation deadlines according to business size.

This initiative is part of a broader set of measures focused on five strategic areas: entrepreneurship, growth, digitalization and innovation, trade support, and internationalization.

Advantages of mandatory electronic invoicing

The implementation of electronic invoicing as a mandatory system represents a significant advancement for the business ecosystem. This change, far from being an additional administrative burden, brings multiple benefits for all parties involved.

Agility in invoicing processes is one of the most notable advantages. Digital transmission allows issuing and receiving documents instantly, eliminating waiting times associated with traditional methods. This factor translates into a considerable optimization of time and business resources.

The security aspect deserves special attention. Digital documents have protocols that guarantee confidentiality, allowing only the authorized issuer and recipient to access the information. Additionally, cloud storage ensures the complete preservation of data.

Economic and operational benefits:

• Significant reduction in costs for paper, ink, and postal delivery
• Elimination of physical spaces for document filing
• Optimization of human resources dedicated to manual tasks
• Greater control over business cash flow

Electronic invoicing contributes notably to environmental sustainability. The reduction in paper consumption and printing materials, together with the elimination of travel for physical deliveries, considerably reduces organizations' carbon footprint.

Complete document traceability constitutes another fundamental advantage. The digital system allows tracking the entire lifecycle of each invoice, from its issuance to its collection or payment. This feature minimizes human errors thanks to automation in data import.

The digital certificates associated with this system function as a virtual identity that legally validates transactions. This technology prevents fraudulent manipulation of documents, offering a framework of legal certainty for all parties in the event of commercial disputes.

For small and medium-sized enterprises, adopting electronic invoicing represents a gateway to digital transformation. This modernization allows integrating various business processes, facilitating automation and improving overall business efficiency.

Integration with other business management systems facilitates the tracking of commercial operations, significantly reducing the risks of failure and delays in economic transactions.

When will electronic invoicing become mandatory?

The mandatory implementation of electronic invoicing in Spain is following a progressive timeline. Currently, Law 25/2013 already establishes that companies must use this format for their operations with municipalities and public administrations.

The new regulation that extends this mandatoriness is Law 18/2022, known as the Crea y Crece Law, in force since October 2022. This law establishes a staggered model for the general adoption of digital invoicing.

Planned implementation timeline:

The mandatory process has been delayed compared to the initial deadlines. Larger companies will need to adapt foreseeably by early 2025, while the rest will have an additional year to implement their electronic invoicing systems.

Spain is thus following a trend similar to other European countries like Italy, where electronic invoicing is already mandatory. This measure aims to increase tax transparency, reduce administrative costs, and modernize business processes throughout the country.

Penalties for non-compliance with electronic invoicing

The Crea y Crece Law establishes significant economic consequences for companies that do not adapt to the mandatory electronic invoice. Fines can reach up to 10,000 euros, but it is important to note that there are different types of penalties depending on the nature of non-compliance. The Tax Administration and the Treasury have strengthened these mechanisms to guarantee compliance and combat tax fraud.

The penalty system is designed to promote digitalization and transparency in commercial operations. Companies must be aware of these potential penalties to avoid problems with the AEAT and other supervisory entities.

Types of penalties for non-compliance:

If a company does not issue invoices in electronic format when it is mandatory, it faces fines of up to 3,000 euros. This amount can increase considerably, as each non-digitized document constitutes an independent infraction, multiplying the total amount in businesses with a high volume of invoicing.

The Public Administration also penalizes failure to properly preserve digital documents. All invoices must be stored for a minimum of four years, during which time the Treasury can request them in any inspection. Non-compliance can result in penalties of up to 6,000 euros.

Tax and accounting obligations do not change with digitalization. Electronic invoices must meet the same requirements as traditional paper ones. The Anti-Fraud Law is clear: bypassing these regulations can result in fines reaching 24,000 euros, being one of the most powerful tools in the fight against fraud.

Data protection is fundamental. Invoices contain confidential information from both the issuer and the recipient, and companies must guarantee their security. Any breach or privacy violation can result in the highest penalty: up to 60,000 euros, depending on the severity of the incident.

Who is affected by the obligation to issue electronic invoices?

Electronic invoicing will be established as mandatory progressively for various economic agents in Spain. All companies and professionals that carry out commercial operations with each other must adopt this digital system.

This obligation applies to a broad spectrum of economic entities: public limited companies, SMEs, freelancers, self-employed workers, legal entities, pension funds, economic interest groups, and permanent establishments in Spanish territory.

There is an important exception: when one of the parties to the transaction does not operate in Spain or does not have a permanent establishment in the country, electronic invoicing will not be mandatory.

Regarding transactions with end consumers, the rules are different. Operations carried out with individuals are not subject to this mandatoriness. This means that:

• Retail businesses
• Professionals who provide services to individuals
• Issuers of simplified invoices

May continue with their usual invoicing methods when dealing with final customers.

How to create an electronic invoice?

Before the Crea y Crece Law comes into effect:

The electronic invoicing process required following several fundamental steps. First, it was necessary to compile the customer's complete information, including their name or company name, tax ID or corporate tax number, and the corresponding fiscal address.

The invoice had to clearly detail the following elements:

• Items of goods or services to be invoiced
• Costs of each element
• Tax rate applicable
• Income tax withholding (when applicable)

This process could be carried out using any invoicing program available on the market or simply through an Excel template. Once the invoice was completed, it was sent to the customer by email or through some shared platform.

With the implementation of the Crea y Crece Law:

The new regulation introduces significant changes to electronic invoicing processes. The most relevant change affects the software used, as it is now mandatory to use programs officially certified by the Tax Agency to generate valid invoices.

In addition to using certified software, documents must incorporate a digital signature that guarantees their authenticity and legal validity. This requirement reinforces the security and traceability of commercial transactions.

The invoice must continue to include all the basic elements mentioned above:

The role of software in mandatory electronic invoicing

Choosing the right software is fundamental for the successful implementation of electronic invoicing. Only programs certified by the Treasury can generate valid electronic invoices, making the selection of the invoicing system a strategic decision for any company.

Good invoicing software must be intuitive and agile, especially for businesses that issue numerous invoices daily. Time savings with well-designed interfaces can represent a significant competitive advantage in daily operations.

Essential features to consider:

• Regulatory compliance with Tax Agency requirements
• Ease of use and learning
• Data handling security
• Accessibility from multiple devices

Cloud-based invoicing systems offer important advantages over traditional solutions. They allow transactions from any location, without depending on a specific computer, facilitating business mobility.

Storage on public platforms or remote servers provides greater security. Data is protected against local hardware failures and cyberattacks, guaranteeing the continuity of commercial operations.

Software certification is another critical aspect. Invoicing programs must maintain the required digital format and guarantee the correct transmission of tax information. This certification ensures that all transactions comply with the standards established by tax authorities.

Integrating the invoicing system with other business tools can maximize operational efficiency and reduce errors in the processing of financial information.

How to adapt to mandatory electronic invoicing?

The implementation of mandatory electronic invoicing requires all companies to update their systems before 2025, when the regulation will affect all professionals without exception. This adaptation is an essential part of compliance with the Crea y Crece Law.

For a successful transition, it is recommended to:

• Select certified software by the Tax Agency
• Plan the implementation well in advance
• Train staff on the new procedures

It is essential to act in advance and not wait until the last moment. The right technological solutions allow a simple and efficient adaptation to this new requirement, facilitating both regulatory compliance and daily business management.

Frequently asked questions

What exactly is an electronic invoice?

An electronic invoice is a document identical to the traditional paper invoice, but it is issued through IT means. It is backed by an electronic signature and authenticated through specific electronic tools. All electronic invoices must comply with the guarantees of legibility, authenticity, and integrity established by Royal Decree 1619/2012.

What is the difference between a digital invoice and an electronic invoice?

Although they seem like similar terms, there is an important difference:

The fundamental difference is that a computer can directly interpret an electronic invoice, while it cannot do so with a simply digitized invoice.

How is an electronic invoice created?

The simplest way is to use specific software adapted to Electronic Invoicing. These programs allow exporting issued invoices in the correct format after completing all required fields. There are various applications on the market that have authorization from the Treasury for this purpose.

What types of electronic invoices exist?

Currently there are two main types:

• Structured format: These are the most recommended since all their fields are automatically recognizable by both the issuer's and recipient's programs, facilitating their direct incorporation into accounting.

• Unstructured format: These include traditional invoices converted to formats such as PDF or image. Although valid, they require OCR systems for processing, which can generate errors.

Is it necessary to sign electronic invoices?

Yes, it is essential. A valid digital certificate is required, which can be obtained through the Royal Mint (FNMT). This certificate must be stored in the invoicing program so that all generated documents are automatically signed.

When will the use of electronic invoices become mandatory?

Starting in 2025, all companies and freelancers, regardless of their size or sector, will be required to implement the electronic invoicing system. However, implementation will be gradual:

• Large companies with annual revenue exceeding 8 million euros will be incorporated first.
• Freelancers and small businesses will have a slightly longer deadline.

What steps should I follow to digitize my company correctly?

For a proper transition to electronic invoicing, it is recommended to:

1. Select the right software

   • Must be adapted to Facturae
   • Have an intuitive interface
   • Be easy to use
   • Allow interconnection with other systems
   • Offer flexibility and scalability

2. Properly train staff

   • Implement training processes on the new software
   • Ensure employees can take advantage of all functionalities

3. Establish a progressive transition

   • Create a scalable implementation timeline
   • Avoid digitizing everything at once
   • Plan to be fully adapted before the deadline

What legislation regulates electronic invoicing?

Electronic invoicing is primarily regulated by:

• Law 25/2013 (December 27): Promotion of electronic invoicing and creation of the accounting register of invoices in the Public Sector.
• Law 18/2022 (September 28): Known as the "Crea y Crece Law", which requires all companies to implement electronic invoicing systems.

Are all professionals required to issue electronic invoices?

Yes, all professionals, including freelancers, will be required to issue electronic invoices, although with different implementation deadlines. It is worth noting that since 2015 it has been mandatory to issue electronic invoices when the recipient is a public administration.

What happens with invoices to foreign customers?

Invoices issued to customers outside Spain are not affected by this legislation, so they may continue using current systems. The regulation only affects commercial activity carried out within Spanish territory.

What are the consequences of not complying with the obligation to issue electronic invoices?

Companies that do not comply with the obligation to issue electronic invoices may face fines that, depending on the circumstances, could reach up to 10,000 euros. The Tax Agency will be one of the main bodies responsible for overseeing compliance with this regulation.

What advantages does electronic invoicing offer for companies?

The implementation of electronic invoicing provides multiple benefits:

• Greater control over all invoices issued and received

From when is electronic invoicing mandatory in Spain?

Electronic invoicing will be mandatory in Spain on a staggered basis. Starting October 1, 2025, all companies and freelancers with annual revenue exceeding 8 million euros must issue electronic invoices. For the rest of companies and freelancers, the requirement will begin six months later, on April 1, 2026.

What are the technical requirements established by the Tax Agency?

The Tax Agency establishes that electronic invoices must meet several specific technical requirements. They must use a structured format that facilitates automatic processing, guarantee the integrity of the content and the authenticity of the issuer, and include an advanced electronic signature or qualified electronic seal.

The systems must ensure the preservation of invoices for at least four years and allow easy access in case of inspection.

Are there differences in application for freelancers and SMEs?

Yes, there are some important differences in the application of the regulation. For freelancers and small businesses with annual revenue below 8 million euros, the entry into force is delayed until April 2026. Additionally, freelancers under the objective estimation regime (modules) have special conditions and adapted deadlines.

The regulation also provides for a more flexible adaptation period for SMEs, with reduced penalties during the first months after entry into force.

What changes does the new regulation bring for Spanish companies?

The new electronic invoicing regulation implies important operational changes for Spanish companies:

• Technological adaptation: Need to implement systems compatible with issuing and receiving electronic invoices.
• Changes in internal processes: Modification of accounting and administrative procedures.
• Greater tax control: Facilitates real-time supervision of commercial transactions by the Administration.

Companies must also guarantee the digital preservation of all invoices, as well as their immediate availability in case of potential inspections.

Are there exceptions to the mandatory electronic invoice?

Yes, the regulation contemplates some exceptions. Operations exempt from VAT due to certain activities of general interest may be excluded. There are also temporary exceptions for micro-enterprises with annual revenue below 100,000 euros, which will have additional deadlines for adaptation.

Operations with individuals who do not act as entrepreneurs or professionals have special conditions. In cases of force majeure that make electronic issuance impossible, the use of other means is temporarily permitted.

How to adapt to the mandatoriness according to official regulations?

To properly adapt to the electronic invoicing regulation, companies must follow these steps:

1. Needs analysis: Evaluate the invoicing volume and specific business requirements.
2. Software selection: Implement a technological solution certified by the AEAT.
3. Staff training: Train the teams responsible for invoice management.
4. Testing period: Conduct trials before the mandatory date.

It is recommended to consult the updated information on the Tax Agency portal and consider the possibility of applying for Kit Digital grants for technological implementation.