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REDEME and SII registration

What are REDEME and SII registration?

The REDEME (which stands for “Régimen de Devolución Mensual”) is a monthly refund system whose purpose is to obtain the input VAT of the investments made as soon as possible. As a consequence of using this system, you will also have to submit to the SII (which stands for “Sistema de Información Inmediato”) which is based on the keeping of the tax registry books through the Spanish Tax Agency electronic office by means of the quasi immediate supply of the invoicing records of your company.

 

This REDEME regime is mandatory for companies with an annual turnover of more than 6 million euros and it is also very interesting for companies that import goods to Spanish territory (operation subject to VAT) and sell them to other countries of the European Union (VAT exempt operations) so they accumulate large amounts of input VAT.

How are they affecting the company?

Those registered in the REDEME must declare VAT returns every month (between the 1st and the 30th of the following month) by filing form 303.

The VAT refund becomes effective during the month following the settlement period. This means that, in order to recover the VAT for January, for example, the registered person has to wait at least until March, once the liquidation period has passed (from February 1 to 30).

The refund is always made by bank transfer, in the bank account indicated by the company in its VAT return.

What is included in REDEME and SII registration?

  • Reduction of formal obligations, eliminating the obligation to file other informative forms.
  • When two companies are in REDEME and in the SII, the Spanish Tax Agency is able to cross-reference the data of the operations between them and therefore the number of Requests received by the Tax Authorities is reduced.
  • Reduction of the time required to carry out the refunds, since the Spanish Tax Agency will have the information in almost real-time and more information on the operations.

How does this registration work in Spain?

It is obligatory to be part of the SII:

  • Those in the REDEME.
  • Large companies with a turnover exceeding 6 million Euros.
  • For VAT groups.

There is also the possibility to join the REDEME and the SII on a voluntary basis.



Timeframe of registration with step by step process

  • A census declaration is filed requesting registration in REDEME and SII.
  • This census declaration can be filed every 3 months and be automatically included in REDEME and SII.
  • If you are included in the REDEME, you must remain for at least one year.

How can a lawyer help me?

These systems require fast and continuous communication with the Spanish Tax Agency, so a consultant will allow you to comply with all the necessary requirements of this system and will release you from the responsibility of all this process of electronic communication with the Spanish Tax Agency. The client’s only function is to deliver on time the documentation (invoices received, invoices issued, bank statements and any other documentation that may be important for the client) related to the company.

Another benefit of having experts in the field is to avoid possible penalties for poor compliance with the requirements of this system.

¨We will be with you each step of your journey.¨

– Immigration Team

Find your Tax Lawyer

Sergi Mingallon

Sergi Mingallon

Tax and accounting specialist
Carla Sanchez

Carla Sanchez

Tax Accountant
Begoña Villarroya

Begoña Villarroya

Tax Specialist
Jorge Lacasa

Jorge Lacasa

Tax Specialist
Tatiana Pacho Retamozo

Tatiana Pacho Retamozo

Trainee

Frequently Asked Questions

Some disadvantages related to these systems are:

  • Shortened delays for data communication.
  • Existence of penalties if invoices are not submitted within the established deadlines.
  • The need to have software compatible with the Tax Agency’s platform.
  • Necessity of training of administrative personnel for its use.
  • An increased administrative burden for the company.
  • As can be seen, all these disadvantages can be solved by hiring an advisor like Lexidy.
  • The deadlines will be:

    Issued invoices must be sent within four calendar days from the date of issuance of the invoice.
  • Received invoices once are received and the entry is accounted for, the program provides an SII registration date from which four calendar days are available to make the submission to the Spanish Tax Agency.

Although REDEME is open to any Company, certain requirements must be met:

  • Be up to date with all tax obligations.
  • Not to have been excluded from the REDEME in the last three years.
  • In the case of the special regime for the group of entities, all the entities must have agreed to be part of it and meet all the requirements.

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