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Telefónica Connects a Direct Line with Spanish Tax Service 

Telefónica is one of the largest telecommunications companies in the world and is headquartered in Madrid. Operating in 17 counties, they employ 127,000 people globally. They provide fixed-line and mobile phones, broadband, and subscription television, operating in Europe and the Americas.

The Challenge

In 2017, the Spanish Tax Agency (AEAT) introduced a new value added tax (VAT) management system called Immediate Supply of Information (SII). This management system then established new VAT rules, where companies are required to digitally provide VAT information from their invoices or other accounting documents within four working days of their registration. This process needed to be established within a certain timeframe or there would be monetary penalties.  

To meet this new compliance, Telefónica required a solution that would allow all their companies to easily adopt the new regulation while managing the volume of invoices and streamline their current systems.
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The Approach

Avvale and Telefónica conducted a detailed analysis of their systems to ensure data quality and compatibility with the AEAT. The B+SII solution streamlined the financial systems used by both companies and restructured data to fit AEAT standards. Avvale created a strategy plan and developed B+SII to integrate different systems, formats, and communication protocols. The solution was tested and integrated with a central dashboard, providing high visibility into the VAT process. The final step of implementation involved uploading billions of records to SII without disrupting daily operations, which was successful. The solution automates the process of sending required reports to AEAT, providing different levels of visibility to different users.

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The Impact

With the implementation of B+ SII, Telefónica is in compliance with the legal requirements of issuing VAT records immediately to the AEAT electronic office. Users are empowered with increased visibility and receive alerts in case any incidents occur when transferring data to AEAT. 
 

As a company, Telefónica gained a unified platform that is accessible across all entities. This platform is secure and reliable to handle large amounts of data. Additionally, with a single platform, there is a reduction in maintenance and operational costs. This secure environment provides a base for future scalability, the ability to integrate into other systems, and the agility to adapt to any new requirements in the future. 

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