Do you usually bill the government? If so, you’re probably used to electronic invoices. If not, it’s a good idea to start learning how they work—they’ll be part of your daily routine in the near future.
Have you heard of FACe? It’s the central portal for electronic invoices used by the Spanish General State Administration. The authorities in our country have firmly committed to this invoicing model. As of January 1, 2021, all companies are required to process their invoices electronically.
Experts cite numerous advantages. Invoicing the government this way allows you to:
They are digital documents that have the same legal validity as paper invoices. In fact, they are subject to the same legal requirements and conditions. The only difference is the medium through which they are created and issued. Instead of traditional paper, they use electronic files.
They are transmitted via electronic communication networks. Of course, it is still necessary to file and retain them for the period defined by law. However, since they are stored in digital format, their retention is not affected by physical factors, making filing more efficient, cost-effective, and sustainable.
Currently, only those companies that must issue invoices to the government are required to do so. In other words, you must use them if you work with:
Regardless of whether you’re self-employed, an SME, or a large corporation, you’re required to issue electronic invoices in all of the above cases.
To streamline and simplify the management of electronic invoices among its agencies, institutions, and departments, the Spanish government uses FACe. It is a single platform where all these digital files are submitted. This, of course, benefits suppliers by making the process faster and more convenient.
It is an online platform that allows for the submission of e-invoices to any government agency. FACe accepts a format known as Facturae and, in addition to submitting invoices, allows you to check their processing status.
Via the Internet, you can send your invoices to this General Entry Point for Electronic Invoices in two ways:
A key feature is that, as soon as you send your invoice, the system records it as an electronic administrative record and assigns it a registration entry.
In summary, the system facilitates four basic actions related to your electronic invoices of this type:
As with any new development, resistance to change is a common reaction. We tend to reject innovations at first, especially when they affect our business and threaten to take up our time. But in reality, these are tools and procedures that greatly simplify our work. If you’ve never invoiced this way before, don’t worry—you’ll get used to it quickly.
In any case, it’s important to get used to it. The Spanish Government’s Digital Transformation Plan is heavily focused on this idea. Before long, we’ll all be required to invoice this way at all times.
The rationale behind this initiative is based on principles of transparency and efficiency. It’s a sign of modernity and, without a doubt, helps reduce administrative burdens. Businesses, in turn, lower costs, save time and effort, and streamline their accounting processes.
Furthermore, tax audits will be much more comprehensive, immediate, and rigorous once this system is fully implemented.
The government has already set two key dates:
As you can see, electronic invoicing to the government is the first step toward an unstoppable reality that will affect all businesses. Do you need financial or economic advice on this matter? We look forward to helping you at WorkCapital.
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