The Create and Grow Law and its Impact on Electronic Billing

The Law 18/2022, known as Create and Grow Law, has brought with it important changes in the business environment and, in particular, in the electronic billing. In this article, we will explore how this law affects obligations related to electronic invoices and how to optimize its implementation for good online positioning.

Generalization of the Electronic Invoice

The Create and Grow Law promotes the digitalization of business relationships and seeks to reduce transaction costs. One of the most notable aspects is the generalization of electronic invoices between companies. Below, we analyze the key points:

1. Obligation for Entrepreneurs and Professionals:
   • All the businessmen and professionals They will be obliged to issue, send and receive electronic invoices in their commercial relationships with other businessmen and professionals.
   • Additionally, they must provide information about invoice statuses, regardless of whether they are recipients or issuers of the invoice.
2. Interoperability and Freedom of Choice:
   • The technological solutions and platforms used for electronic invoicing must guarantee the free interconnection and interoperability.
   • Recipients cannot be forced by the invoice issuer to use a specific solution or default provider.
3. Deadlines for Mandatory:
   • The electronic invoice will be mandatory in the following periods:
     • Companies with Annual Turnover Over 8 Million Euros: 1 year since the approval of the regulation.
     • Companies with Annual Turnover Less than 8 Million Euros: 2 years since the approval of the regulation.
   • This means that companies must adapt their billing systems to issue and receive electronic invoices within these deadlines.

Benefits and News

The Create and Grow Law It is a regulation that aims to facilitate the creation and growth of companies in Spain. Below are some of the key innovations and benefits of this law:

1. Electronic billing:
   • The Law Creates and Grows generalizes the use of electronic invoice in operations between businessmen and professionals. This not only drives business digitalization, but also serves as a mechanism to combat late payments in commercial transactions.
   • The electronic invoice streamlines processes, reduces costs and improves transparency in operations.
2. License Exemption:
   • The rule expands the list of economic activities exempt from licenses. Now those activities considered harmless by at least one autonomous community are incorporated into the state catalog.
   • This facilitates the creation of new businesses by reducing regulatory obstacles.
3. Minimum Share Capital:
   • The Create and Grow Law allows you to create a Limited Liability Company with a share capital of only one euro. This compares with the 3,000 euros that were previously required.
   • Spain thus aligns itself with other countries where there is no minimum capital to establish a company of this type.
4. Business Incorporation Facilitation:
   • Specific reforms are introduced to facilitate the incorporation of companies quickly, agilely and electronically through the Information Center and Business Creation Network (CIRCE).
   • This simplifies procedures and reduces the time it takes to create new companies.
5. Fight against late payment:
   • The standard includes the average payment period as an assessment criterion for access to subsidies and public procurement.
   • The objective is to encourage business owners to meet their payment obligations on time and reduce late payments.

The Create and Grow Law seeks to encourage the creation of companies, improve regulation and promote digitalization, all with the aim of strengthening the business fabric in Spain. Go ahead with digitalization!