What is the Create and Grow Law?
The Create and Grow Law, formally known as Law 18/2022, is a regulation that was passed in Spain with the aim of encouraging the creation of new companies and facilitating their growth. This law introduces a series of measures to reduce administrative barriers and improve the business environment in the country. Among the highlights of the law is the mandatory electronic invoicing for all companies, regardless of their size, which represents a significant change in the way companies manage their business transactions.
Main Objectives of the Create and Grow Law
Facilitate the Creation of Companies : Simplify the procedures and formalities necessary for the creation of new companies, reducing costs and times.
Promote Business Growth : Encourage the growth of existing businesses by reducing bureaucratic barriers and improving access to financing.
Increase Transparency : Improve transparency in business transactions and reduce fraud by making electronic invoicing mandatory.
Promote Digitalization : Promote the digitalization of companies, promoting the use of advanced technologies to improve efficiency and competitiveness.
Impact of the Create and Grow Law on Invoice Management
The Create and Grow Law has introduced significant changes in invoice management, which must now comply with certain additional requirements to ensure transparency and regulatory compliance. One of the most important aspects of the law is the mandatory electronic invoicing for all companies, which implies the adoption of new technologies and procedures for issuing, receiving and storing invoices.
Mandatory Electronic Billing
Electronic invoicing, which was already mandatory for transactions between companies and the Public Administration, is now extended to all transactions between companies (B2B). This measure seeks to improve transparency in commercial operations and reduce the risk of fraud and tax evasion. Companies, regardless of their size, must issue and receive electronic invoices, which requires the adoption of invoicing software compatible with current regulations.
Advantages of Electronic Billing :
Error Reduction : By automating the invoice issuing process, the risk of human error is significantly reduced.
Operational Efficiency : The digitalization of invoices facilitates their storage, search and management, improving operational efficiency.
Regulatory Compliance : Electronic invoicing ensures that all invoices comply with legal requirements, reducing the risk of penalties.
Transparency and Traceability : By using a standardized format that is compatible with tax regulations, the transparency and traceability of transactions is improved.
Invoice Statuses according to the Create and Grow Law
With the Create and Grow Law, different invoice statuses have been introduced that reflect their situation in the transaction life cycle. These statuses are essential for regulatory compliance and proper financial management. Below, we analyze the main invoice statuses and their importance.
1. Invoice Issued
An issued invoice is one that has been generated by the issuer (seller or supplier) and sent to the recipient (customer or buyer). This is the first status of the invoice and marks the beginning of the collection process. According to the Create and Grow Law, the invoice must be issued in electronic format and comply with all legal requirements, including the inclusion of correct tax information, a detailed description of the products or services and the breakdown of applicable taxes.
