To speed up frequent collections and payments, it is necessary to present a direct debit or direct debit, which brings us to SEPA Direct Debt Domiciliation Form.
Here you will find out what it is, its usefulness, how to fill it out and its format. Continue reading!
What is the SEPA Direct Debit Domiciliation Form?
This form is taken by an authorization that is granted to the banking institution of preference to make the payments of recurring receipts that enter through it.
In short, it is an order that is given to the bank so that the payment or collection of a receipt takes place, without the need for them to contact the holder for authorization permission or to do the monetary procedure several times.
If it is a person who owns a business, he must pay several utility bills each month, for example: electricity, electricity or gas. Payment must be made periodically and with this documentation, it is possible to direct debit the receipts to continue with the payment or collection from the company account, which greatly facilitates the process.
Direct debit of taxes
Every three months, it is necessary to present tax forms to the Treasury. Due to this, the Tax Agency grants an option regarding the case: domicile the payment of taxes so that the payment is made automatically.
This direct debit of tax payment, the same month in which it is made, must be accompanied by the tax forms. Once this is specified before the 15th of the month, to make the direct debit.
SEPA direct debit
When we talk about SEPA direct debit, we refer to those direct debits that are made following the SEPA regulations.
The SEPA mandate established an agreement to make payments between countries that are governed by the organization’s measures easier. These measures include direct debit and payment of bank remittances based on the SEPA standard.
The SEPA standard gave the name of Direct Debits to all direct debits, because they comply with the provisions.
The most significant change with the new appointment is that the WERE GOING (International Bank Account Number) -which is the account number of the client with which you carry out banking operations – and the BIC (Bank Identification Code) -which is the identification number of the bank-, to issue a SEPA Domiciliation order.
In this category there are two subtypes, depending on who is the creditor (person who receives the payment) and who is the debtor (person who issues the payment): basic direct debits and B2B direct debits.
SEPA Direct Debit Domiciliation Form Format
Filling out the SEPA Direct Debit Domiciliation Form
- In the header: SEPA Direct Debit Domiciliation Order.
- Reference should be made to the right of reimbursement. An example of this:
By signing this direct debit order, the debtor authorizes the creditor to send instructions to the debtor’s entity to debit his account and to the entity to debit his account following the creditor’s instructions. As part of their rights, the debtor is entitled to reimbursement by his entity in the terms and conditions of the contract signed with it. The reimbursement request must be made within the eight weeks following the date of debiting the account.
- Instructions to the client, and delivery of the accredited and signed form.
- Command reference: 35-position alphanumeric code. It allows identifying the Domiciliation order signed by the debtor. It must be a unique code.
- Creditor identifier: unique code assigned by the bank, to issue debts.
- Creditor and debtor data: full name, address, postal code, province and country.
- BIC code of the debtor’s entity: from 8 to 11 positions, to identify financial entities.
- Debtor account IBAN: 24 positions starting with ES.
- Payment type: single payment transaction or recurring payments.
- Place and date of signature of accreditation.
What is it for?
This form works to do the receipt collection easily, automatically and visually. Without the need to create files and you get the benefit of receiving money faster.
Who should File the SEPA Direct Debit Domiciliation Form?
To direct debit a receipt, an order must be sent to the banking institution that is the one indicated to authorize the payment of the same.
To proceed with this, you must start the procedures to issue a Domiciliation Order.
Domiciliation Order or also called, mandate is the authorization document to the bank for the payment of receipts.
This is an initial order that is presented for indicate the authorization of direct debit of said receipts.
SEPA, acronyms for Single Euro Payments Area. It is an initiative that allows people, companies or economic agents to make payments in euros, nationally and internationally, under basic conditions and with the same rights and obligations, depending on where they are.
The SEPA zone is made up of 27 countries that are members of the European Union. Likewise, Iceland, Liechtenstein, Monaco, Norway and Switzerland.
This project makes it possible for users who want to make bank transfers, direct debits or cards have a unique set of standards and norms.
Consequently, national or cross-border payments between countries belonging to the SEPA zone become simple, efficient and secure procedures.
What benefits does SEPA bring?
The main benefits provided by this single area of payments in euros are:
- Use a single bank account for operations in euros within the SEPA zone.
- Use of common standards, which improves efficiency in payment processes and greater competition in general.
- Greater protection for users who make use of the payment service.
- Ease of executing international payments.
- Potential development of innovations in the payment method: electronic invoicing, payments through the Internet or mobile phone.
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