Audit procedure and penalties for non-compliance with current legislation in the Basque region

In the terms of compliance with the TBAI system applied in the Basque region, we are not sure yet how will the audit procedure look like. According to the current information, we can say that it is not specified how the process will look and how will the data be available to Tax Administration.

Nevertheless, it is mandatory to cooperate with authorities. Also, it is important to state that the Tax Administration may appear in person, both in the investigation and verification of formal obligations, in order to verify the correct compliance with the TicketBAI obligation by taxpayers. Possible to ask companies about the XML files created by the POS, in order to verify their integrity of them (XML is stored in Form 240) and other requirements. The main subject of this inspection is to verify that is everything in compliance with TBAI rules. 

But, if the invoices do not meet the requirements of the invoicing regulation, and XML files do not meet the requirements of guaranteeing software (or that they have been manipulated, altered, or destroyed) penalties will be imposed. We can divide sanctions for not complying with the Ticket BAI system

• for non-compliance with the law and
• for destruction, manipulation, or erasure of the data

In general, for not complying with law and regulations, the sanction will consist of a proportional pecuniary fine of 20 per 100 of its turnovers in the previous year, with a minimum of 20,000 euros-if the sanctioned taxpayer commits the same infringement again, the sanction will be 30% of its turnover, with a minimum of 30,000 euros. In the case of an isolated infringement, the fine is 2,000 euros for each breached transaction. The sanctions can be applied both to the end customer, companies and freelancers, as well as to the companies that provide the TicketBAI service.