Business owners may choose between issuing paper or electronic invoices

Billing management is a critical operational process for any economic activity. Recently, the General Directorate of Taxes (DGT) has clarified the freedom available to business owners and professionals regarding the physical or digital medium of their commercial documents.

What the DGT has ruled

The advisory body has determined that business owners or professionals have the power to choose the method for issuing their invoices, being able to opt for paper support or electronic format. This criterion establishes a clear distinction between the various tax obligations related to billing.

The resolution underlines that the use of computer billing systems does not dictate the method of issuing a full invoice instead of a simplified one. In this sense, the DGT specifies that there are three differentiated obligations that must not be confused:

• Invoice issuance obligations.
• Accounting record-keeping obligations.
• Technical requirements applicable to computer systems.

What this means for you

For companies, this clarification confirms that digitalization is not an imposition on the medium of the invoice itself; rather, the choice of medium depends on the operations of each business. The fact that one has management software does not automatically mandate abandoning paper if legal requirements are met, nor does it prevent the transition toward purely digital models.

It is fundamental to understand that compliance with computer system requirements, regulated by current legislation, is independent of the decision to issue invoices in one format or another. Regulations on billing systems seek to guarantee integrity and traceability, but they do not nullify the ability to choose the medium.

What should be done

Each entity must evaluate its business model and technological infrastructure to decide which medium is most efficient for them. It is necessary to verify that, regardless of the chosen medium, the requirements of the VAT Law and the Billing Regulations are strictly met. It is recommended to ensure that the computer systems used comply with billing system regulations to guarantee the validity of records and the correct issuance of documents.