Verifactu: How the new invoicing system for SMEs and the self-employed works
Companies and self-employed workers will have to change their software starting next year.
BarcelonaCompanies and self-employed workers are preparing for a new change in invoicing. Starting next year, the invoicing systems they use must comply with new standards to facilitate the Tax Agency's oversight and combat tax fraud. The new regulation aims to make it easier to prove that an invoice has been verified by the agency, hence its name: Verifactu.
This new model must be applied by SMEs and self-employed workers subject to personal income tax (IRPF) or corporate tax, who have a software program to issue invoices. It will not affect companies that provide invoicing records electronically through the SII system, designed for those with a turnover of more than six million euros. The Tax Agency reminds that the Digital Kit aid can be used to adopt a software with Verifactu, and for businesses that generate few invoices, the agency has made a free invoicing application available.
Verifactu will automatically send invoices to the agency and ensure they cannot be modified. This way, all invoices will be registered with the Treasury and no subsequent changes can be made. This is done to avoid software Dual-use cards, which allow tax deferrals in the event that a supplier cannot pay the invoice when it is issued and requests a delay without issuing a corrective invoice. "It will provide greater transparency," summarizes Celia Ferrero, vice president of the Association of Self-Employed Workers (ATA). "It will also reduce human errors and simplify tax procedures," notes Lyreco, a French multinational based in Cornellà de Llobregat that markets software through Verifactu.
On the other hand, invoices will now include a QR code, which will allow you to check whether the Tax Agency has received them and has them filed in its records. Although the QR code can be read with any mobile app, the agency recommends doing so with your own app, which is also used to file income tax returns, to ensure that the code is addressed where it should be. "The goal is for it to be like a draft income tax return. The Treasury will draft the VAT based on the invoices issued, and users will only have to say yes or no," explains Ferrero.
To comply with the new billing model, billing software has had to adapt. The technology companies that design these systems had until the end of July to do so. Once the software They've already updated their software, so it's their clients' turn to implement it. Starting January 1st, businesses will have to do so, while starting July 1st, it will be the turn of the self-employed. If users don't incorporate this updated software, they will face fines of €50,000 per fiscal year. For manufacturers of these systems who haven't done so, the fine will be €150,000.
Small Business
The imminent entry into force of Verifactu, approved at the end of 2023, has caused concern among small businesses and self-employed workers, with employers' associations such as Pimec calling for a two-year moratorium. This change is particularly worrying in local commerce. According to a survey conducted by the Catalan employers' association, only 7% of establishments already have an adapted invoicing system, and 76% have not yet initiated any action. "Transparency and fiscal control are necessary, but also greater flexibility. Digitalization is the way forward, but we can't run any faster," argues Mònica Gregori, president of Pimec Comerç. "Since the pandemic, many challenges have been overcome, and the sector is not at its best, as evidenced by the closure of many emblematic businesses."
Small businesses such as shops, bakeries, market stalls, and hair salons must also adapt to this new invoicing model. In this case, adapting Verifactu not only involves hiring software that issues QR code invoices and receipts, but also having all the necessary equipment to register them correctly. This entails replacing old cash registers or scales with digital ones, at a cost of approximately €1,500 and €2,000, respectively. "Not all businesses are digitalized, and a flexible and gradual implementation is necessary," Gregori emphasizes. In addition to a moratorium, the Catalan employers' association is calling for direct aid to fund the new system. "The State has provided many resources, such as the Digital Kit, but they have not reached small businesses," criticizes Gregori, who also calls for tax deductions for those who invoice with Verifactu ahead of schedule.
