Solve VAT problems with the corrective invoice

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As the pressure on public spending grows, the Treasury's demands on taxpayers increase. Robots, Artificial Intelligence, increased rates ; the self-employed are increasingly sensitive to fines for irregularities .

During 2020, the crisis turned thousands of self-employed workers into victims of fines from the administration. All it takes is a minor error in filing taxes for the Tax Agency to demand payment of between 20 and 300 euros .

“ Tax errors, however small, are often very expensive ,” explains Domingo Gallego of ATA. “ The Treasury does not forgive errors or filing forms after the established deadline, and imposes a penalty for all of them .”

Therefore, in addition to knowing exactly what the corresponding tax obligations are , and periodically monitoring the taxpayer 's calendar in each fiscal year, the self-employed person must be aware of all the legal tools at his disposal.

Today at MÁSMÓVIL Negocios we focus, with slovenia number data descriptions, advice and procedures, on one of the most unknown: the corrective invoice.

post corrective invoice

A legal vote of confidence
Although it collects hundreds of thousands of euros in fines each year, the Treasury's vocation is tax commitment, not collection. That is why, almost a decade ago, the payment invoice was abandoned , including a new instrument for taxpayers in the law.

Article 15 of Royal Decree 1619/2012, of 30 November , approving the Regulation governing billing obligations, details the operation and validity of the corrective invoice. What exactly is it?

Unlike other invoices, this type of issue is only intended to correct errors in other types of invoices . In other words, they are a kind of amendment that the Tax Agency accepts in the event of an error and under certain circumstances :

Correct an invoice when it includes any irregularities in its content.
Correct the amount entered on an issued invoice.
Make a partial or total return of an order.
Recalculate an incorrect tax rate.
Recover the declared VAT on an unpaid invoice in a quarter prior to issuance.
To avoid having to repeat the same procedure several times, the Treasury fortunately allows you to correct multiple inaccuracies at the same time with a single corrective invoice , " as long as all the corrected invoices are identified ."

Is the corrective invoice mandatory?
It is mandatory since submitting invoices with errors is grounds for sanction . That is why the law establishes the need to correct the error when it has been detected, as quickly as possible .

“ The corrective invoice must be issued as soon as the party obliged to issue it is aware of the circumstances that require its issuance .” However, this must always be done within certain time limits. Which ones?

“ Four years from the moment in which the Tax was accrued or, where applicable, the circumstances referred to in Article 80 of the Tax Law occurred ”. That is, the contemplated modifications to the tax base.

In addition, there are two cases related to the above in which it is not possible to issue the corrective invoice:

If the correction is not motivated by anything set out in Article 80 of the Tax Law, involves an increase in the rates and the recipients do not act as “businessmen or tax professionals”.
When the Administration has already revealed the amounts not declared by the taxpayer, and “the latter's conduct constitutes a tax offence”.
In this way, the Treasury ensures that the corrective invoice is a tool of voluntary commitment and good practice , rather than a palliative measure to reduce penalties.

These issues are also contemplated for cases in which legal increases in tax rates have occurred , and the taxpayer has already declared. “ It may be carried out in the month in which the rates come into force and in the following month .”

What should be included and how to prepare a corrective invoice
In essence, the corrective invoice is a correction of another invoice , so, in addition to referring to the latter, it must include everything that the law deems necessary in an invoice of any type.

“ All corrective invoices must state their corrective status and the description of the reason for the correction ,” the Treasury notes. They must also be numbered for registration (normally with the designation “R” followed by the number).