Spain’s Anti-Fraud Law, officially known as Law 11/2021 on measures to prevent and combat tax fraud aims to:

• Prevent and combat tax fraud
• Reduce the shadow economy
• Improve tax control
• Ensure fiscal transparency

Changes to Cash Payments

The law introduces new limits on cash payments:

• For transactions with businesses or professionals, the limit is reduced from €2,500 to €1,000.
• For individuals with a tax residence outside Spain, the limit decreases from €15,000 to €10,000.

Billing Software Requirements

One of the most significant aspects of the law is the regulation of billing software:

• Businesses must use approved billing programs that ensure the integrity, preservation, accessibility, readability, traceability, and immutability of records.
• The use of dual-use software or double accounting that allows income concealment is prohibited.

Requirements for Billing Software

Billing programs must meet the following criteria:

• Correctly identify the issuer of the invoice
• Assign a unique number to each invoice
• Include the date of issuance
• Specify the type of invoice (full or simplified)
• Show the total amount
• Detail the applicable VAT regime

Implementation Deadlines

• The law will come into effect on July 1, 2025, for self-employed individuals and businesses with an annual turnover below €6 million.
• Businesses exceeding this turnover must already comply with the regulations since 2017.

Penalties

Non-compliance with the Anti-Fraud Law can lead to significant penalties:

• A fine of 25% of the amount for accepting cash payments exceeding the established limit.
• A penalty of €50,000 for using or possessing non-approved or dual accounting software.
• Possible revocation of the Tax Identification Number (NIF) for failing to comply with regulations.

Recommendations for Businesses and Self-Employed Individuals

1. Adopt an approved billing software before the effective date.
2. Ensure that the software complies with all requirements set by the law.
3. Avoid using spreadsheets or manual methods for accounting and invoicing.
4. Stay informed about updates and changes in legislation.

The Anti-Fraud Law represents a significant shift in how businesses and self-employed individuals manage their invoicing and accounting. Adapting to these new requirements is crucial to avoid penalties and contribute to the fight against tax fraud in Spain.