Interview with Miguel Font: Understanding Verifactu, the SII, and the Future of Digital Tax Management
Interview with Miguel Font: Understanding Verifactu, the SII, and the Future of Digital Tax Management
In today’s rapidly evolving tax landscape, having the right expert insights is key to understanding how digital transformation is reshaping business compliance. At Dynasoft, we had the privilege of speaking with Miguel Font, a leading lawyer and economist specialized in Tax Law, and Head of the Tax Department at Bufete Antonio Font, one of the most prestigious law firms in the Balearic Islands.
With years of experience and a deep understanding of the intersection between technology and tax regulation, Miguel Font sheds light on crucial topics such as Verifactu, the Immediate Supply of Information (SII), and electronic invoicing — systems that are redefining how companies manage fiscal reporting and compliance.
Below, we share the full interview, where Miguel discusses the main updates, their practical implications, and his advice for businesses preparing to navigate this new regulatory environment.
Interviewer:
Today we’re joined by Miguel Font, a leading tax advisor in the Balearic Islands. He currently heads the Tax Department at the prestigious firm BUFETE ANTONIO FONT, specialized in legal, labor, and tax advisory services. Miguel, could you briefly tell us about your professional background and the main activity of your firm?
Miguel Font: Good morning, and thank you very much for the invitation. As for my professional background, I am a practicing lawyer and economist specialized in Tax Law. I began my professional career in Barcelona, at the Garrigues law firm, and 17 years ago I decided to join our family firm’s professional project. Since 2019, I have also been a professor of Financial and Tax Law at the University of the Balearic Islands (UIB).
Currently, our firm has 32 professionals, including lawyers, economists, labor relations specialists, and other staff. In the legal field, we specialize in Labor and Social Security Law and in Tax Law.
Interviewer: Quite an impressive career, indeed.
Block 1: Tax News
Interviewer:
We are witnessing a real transformation in the field of taxation with the arrival of Verifactu, the SII, and electronic invoicing.
• In your opinion, what are the main developments that companies should be aware of?
Miguel Font: First of all, I must emphasize that these are more technical modifications from an IT perspective rather than substantive legal changes.
In any case, these are regulatory changes of undeniable relevance for companies which, in my view, mainly highlight the authorities’ intention to increase CONTROL by the Tax Administration over taxpayers.
Without a doubt, among those mentioned, I would highlight Royal Decree 1007/2023 of December 5, which has been colloquially referred to as the Verifactu Regulation.
Block 2: Verifactu
Interviewer:
Let’s start with Verifactu: what exactly is it and who does it affect?
Miguel Font: As we mentioned, this is a Regulation approved in 2023 to develop Law 11/2021 of July 9, on measures to prevent and combat tax fraud. Its goal is to establish the requirements that computer or electronic systems supporting invoicing processes must meet, as well as to standardize the format of invoicing records.
As a general rule, it applies to taxpayers who use invoicing software in the course of their business activity, even if they only use it for part of that activity.
When does it come into effect, and what steps should a business owner take to adapt?
Miguel Font: Corporate Income Tax taxpayers must have their IT systems adapted to the Regulation’s characteristics and requirements before January 1, 2026.
Other taxpayers (those under Personal Income Tax, Non-Resident Income Tax, and entities under income attribution regimes) must have their adapted IT systems operational before July 1, 2026.
From there, there are two options for compliance:
a) Using an IT system that meets all technical requirements in terms of integrity, preservation, accessibility, readability, traceability, and immutability of invoicing records.
b) Using the software application developed by the Tax Administration.
What changes will it bring to the way invoicing and tax declarations are managed?
Miguel Font: As mentioned, companies will need to adapt their invoicing software to the new technical specifications and requirements, which could mean anything from a simple update to a complete replacement or even a homologation process.
As for tax returns, this Regulation does not, in principle, modify or affect the way tax declarations are currently filed.
Interviewer: In most of our clients’ business models, company operations are managed with one application (the PMS in hotels, for example), while accounting, finance, and tax are handled with another. It’s undoubtedly a complex model.
Does the regulation allow this type of setup?
Miguel Font: The regulation does not prohibit using multiple applications. It simply establishes the legal obligation that all invoicing systems comply with the technical requirements set by the Royal Decree.
Among them, the system must be capable of electronically sending all invoicing records to the Tax Administration continuously, securely, accurately, completely, automatically, consecutively, instantly, and reliably.
In addition, invoicing systems must include a “hash” footprint in each record and display a QR code on each issued invoice.
Will it be necessary for all applications to go through the certification process?
Miguel Font: In my view, any applications that do not fully meet the technical requirements for integrity, preservation, accessibility, readability, traceability, and immutability of invoicing records cannot be used by obligated taxpayers.
Moreover, the software provider must certify, through a responsible declaration, that the system complies with current regulations.
Is there currently — or is it expected that there will be — any tool that facilitates compliance with the regulation for small businesses?
Miguel Font: Although this question is more technological than legal, I know that major management and invoicing software providers are already offering simple and agile solutions for micro and small enterprises. In some cases, they are even considering externalized invoicing options.
Interviewer: Verifactu stems from EU-wide legislation.
How will Verifactu affect operations with clients or suppliers within the European Union?
Miguel Font: From a territorial perspective, the Regulation applies throughout Spain, regardless of where the company’s clients or suppliers are located.
Therefore, as long as the invoicing system complies with the new technical requirements, operations with EU clients or suppliers should not be affected.
Will we see a global control system at the EU level?
Miguel Font: Indeed, Law 11/2021 of July 9, from which the Verifactu Regulation originates, is a transposition of Council Directive (EU) 2016/1164 of July 12, 2016.
The Regulation’s preamble refers to a common objective set by international organizations (such as the OECD and the EU) called “compliance by design,” which aims to ensure a simple and efficient connection between taxpayers and the Administration in digital environments at the lowest possible cost for all parties.
That said, in my humble opinion, a true EU-wide control system is still far from becoming a reality, given the specificities of each Member State.
Block 4: Relationship between Verifactu and the SII
In Spain, we’ve had the SII since 2017, and at first glance, both systems seem to serve the same purpose: monitoring sales and purchase invoices.
What differences exist between Verifactu and the SII?
Miguel Font: Although they are closely related, their purposes differ. The SII involves the electronic submission of VAT ledgers, allowing the Administration to access transaction data almost in real time (every four days). Verifactu, however, focuses on the technical component of invoicing systems. It aims to ensure traceability and prevent invoice manipulation.
As you mentioned, this represents another step toward reinforcing the already extensive CONTROL that the Administration holds over taxpayers.
Interviewer: At first glance, submitting the SII seems to exempt, at least temporarily, the need to comply with Verifactu.
In which cases is that so?
Miguel Font: According to Article 3 of the Regulation, it does not apply to taxpayers who submit VAT ledgers electronically (SII) under Article 62 of the VAT Regulation.
Therefore, somewhat paradoxically, these taxpayers (typically large companies) will not need to adapt their IT systems for now.
What will ultimately happen with these two systems? Will they be unified?
Miguel Font: Although it’s too early to say, everything indicates that we’re moving toward a system where the Administration will have real-time information on all transactions and all operators a scenario of ABSOLUTE, INTEGRATED, and INSTANT CONTROL. As you rightly note, it’s possible that both obligations could merge in the future. In fact, the Third Additional Provision of the Regulation already contemplates the potential integration of the SII and Verifactu.
Block 3: The SII in the Canary Islands
Interviewer: In any case, it seems that the SII is here to stay, and a good example is the new developments taking effect in the Canary Islands, which has its own tax system.
What recent changes would you highlight for 2025?
Miguel Font: In the Canary Islands, on July 10, a new Order was approved amending specific normative and technical SII specifications effective October 1. Its main goal is to facilitate the correct fulfillment of tax obligations related to IGIC (the Canary Islands General Indirect Tax).
For example, the record of received invoices now includes fields to report the deduction of the tax in a later period or to identify VAT amounts related to investment goods.
Likewise, both the issued and received invoice ledgers must now include transactions subject to the AIEM (Arbitrio on Imports and Deliveries of Goods) and excise duties.
Overall, these changes clearly aim to improve fiscal data control.
What does the incorporation of the AIEM into the Canary Islands SII control system mean?
Miguel Font: As mentioned, the July 10 Order requires that both invoice ledgers detail transactions subject to the AIEM, explicitly indicating the tax amount.
We understand this will provide greater traceability to the Canary Islands Tax Agency when verifying transactions subject to this tax. Again, it’s all about improving data quality for control purposes.
Block 5: Electronic Invoicing
Interviewer: Let’s talk now about electronic invoicing. We’ve often found that our clients confuse the electronic invoicing requirements of the “Crea y Crece” law with Verifactu.
Why were separate regulations and systems created?
Miguel Font: They address different matters. The Verifactu Regulation requires companies to adapt their invoicing systems to specific technical standards, whereas Law 18/2022 of September 28 (known as the “Crea y Crece” Law) generally regulates electronic invoicing for all B2B transactions in the private sector.
How will it impact the daily operations of companies, both nationally and across Europe?
Miguel Font: First, it should be noted that the regulatory development of electronic invoicing between businesses is still pending approval. Therefore, its practical implementation will have to wait.
The legislator’s intention is to digitize business relationships, reduce transaction costs, and promote transparency in commercial activities. The Law’s preamble even presents it as a measure to combat late payments in business transactions.
However, as we said, this project is delayed, and we must wait for the final regulation to assess its real impact.
Interviewer: The European project ViDA, “VAT in the Digital Age,” seeks to modernize VAT management across the EU.
What changes will it bring, and how will Spain need to adapt?
Miguel Font: In December 2022, the European Commission proposed revising the EU’s common VAT system to adapt it to the digital era, under the ViDA Project. It aims to modernize VAT rules in three areas: tax digitalization, platform economy, and the single VAT registration system. Since this requires unanimity among Member States, the legislative process has been quite complex.
Regarding digitalization, the main measures agreed so far include:
-
Electronic invoicing, under the EU standard, will become mandatory for intra-community transactions starting in 2030. Also in 2030, the current reporting system for intra-community operations (Form 349) will be replaced by a new real-time e-invoicing reporting system, creating a new mechanism to monitor intra-community trade. National reporting systems (like Spain’s SII) will need to converge with this new system by 2035.
What should companies already be doing to prepare for the transition to mandatory and real-time electronic invoicing?
Miguel Font: In my opinion, it’s highly advisable to continuously train teams in this area and to conduct pilot or parallel tests to anticipate the upcoming transformation process.
Block 6: Practical Advice
Interviewer: From your experience, what is the most common mistake companies make when adapting to these new digital regulations?
Miguel Font: Although it depends on many variables, I’d say the most common issue is a lack of proactivity. In a scenario like the one we’re describing, waiting until the last minute to understand and implement changes greatly increases the likelihood of serious problems.
Interviewer: What advice would you give to an SME that wants to get ahead of Verifactu and the SII?
Miguel Font: While I don’t consider myself the best person to give business advice given my technical tax profile, if you ask me directly, I’d recommend: first, align all teams (IT, finance, legal, accounting, etc.) — and I don’t just mean internal teams, but also external service providers. Second, ensure ongoing training, and finally, anticipate the change as early as possible.
If we wait until late 2025 to start understanding Verifactu, we could face major issues when 2026 begins.
Interviewer: Miguel, thank you for your time and for helping us better understand these developments. Electronic invoicing is not only an obligation — it can also become an opportunity to modernize and bring transparency to tax management. It’s been a pleasure having you with us.
Miguel Font: Thank you again for the invitation. The pleasure has been mine.
Our conversation with Miguel Font highlights that the digital transformation of tax systems is not just about compliance, it’s also an opportunity to modernize processes and enhance transparency in business management. To discover more and watch part of the interview, visit our social media channels, where we’ve shared exclusive video clips of the discussion.
Share