As a result of the approval and published of the Business Creation and Growth Act on the Official State Gazette (BOE), SMEs (PYMES) have up to 24 months to digitize their invoices. If this measure is not carried out small and medium-sized, entrerprises could be fined up to 10,000 euros.
According to statements taken by the newspaper ABC Economía, the Government points out that “the obligation to issue and send electronic invoices are extended to all commercial relations between companies and the self-employed, which will guarantee greater traceability and control of payments”.
In addition to reducing transaction costs and getting into the digitalization’s world, the measure will also help to reduce commercial fault by providing a reliable information, moreover with a more agile and systematically process to guarantee for effective payment deadlines.
This regulation aims to encourage the creation of companies with the possibility of creating a Limited Liability Company with just 1 euro, it also contains elements to support late payments and fraud, such as the introduction of this new penalty for not having digital invoices.
Thanks to the European Next Generation funds and as part of the support plan in the Digital Agenda 2025 and the Recovery, Transformation and Resilience Plan, subsidy plans of up to 3 billion euros have been proposed so that companies can bear the cost of implementing this measure.
Therefore, the government considers appropriate to extended time’s period for smaller companies so they can adapt to the new digital invoicing syste for this case, SMEs (PYMES) will have up to two years to align before its implementation becomes mandatory.
In accordance to Spanish Confederation of Small and Medium Enterprises (CEPYME), electronic invoicing will help companies’ transparency and productivity, although, it will be neccesary an initial investment and above all a cultural change to apply it.
In OBN& we want to offer our help in case of doubts regarding the adaptation of your company in this new digital system. We encourage you to prepare your company as soon as possible and avoid delays that may penalize the operations of your business. Contact our experts.