Digitalization

Digitalization is the process of transforming traditional (manual or paper-based) tasks into digital processes using technology—such as accounting software, cloud storage, or digital databases.

 Advantages:

Saves time and costs
Quick access to information
Fewer human errors
Improved data security and backup
Better business control and efficiency

Taxation (Fiscality)

Taxation refers to the set of laws and obligations that regulate how individuals and businesses must pay taxes.

 Key points:

Includes taxes like VAT, personal income tax (IRPF), and corporate tax

Requires regular tax filings (monthly, quarterly, yearly)

Involves keeping proper accounting and tax records

Managed through communication with tax authorities (e.g., Tax Agency)

Connection between Digitalization and Taxation

Digital tools simplify tax compliance, generating reports and tax returns automatically

Tax authorities increasingly require digital submissions (e.g., real-time VAT reporting systems like SII in Spain)

Digital records help maintain accurate and up-to-date tax and accounting books

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