SELF-EMPLOYED REGISTRATION (CHAPTER 2) – BUSINESS ACTIVITY MAIN & REGULAR TAX DECLARATIONS DURING THE YEAR
TAX FORM 303 (VAT)
It gets paid to the VAT department every quarter. Depending the actual business regime (i.e. Modules, PAYE, Ltd. Corporations, ..), the tax form is numbered differently, but generally speaking it is worked out very evenly in every case.
It is important to separate VAT associated to total sales, and VAT associated to total expenses. In case of a possitive difference, should the VAT difference be paid to the tax authorities, and in case a negative difference, should the VAT credit either claimed back in the end of the year, or roll it over to following years VAT returns.
These VAT tax forms will also include products/expenses adcquired overseas within the EU area which the business owner did not get VAT charged (Adquisiciones Intracomunitarias de bienes) at the purchasing moment in time, but will be obliged to get EU VAT registered beforehand in order to able to consider himself/herself exempted to pay tax in the particular EU country where he bought the products.
In the event that products were purchased online through i.e. AMAZON, it will be important to be registered in AMAZON as a business trading company, and not as a final consumer individual in order to make everyone participating in the transaction that VAT is not applicable; unless products being purchased were actually located in Spanish territory!! because AMAZON already had them stocked in Spain eventhough the buyer thought that he bought them from a company in Italy.
Annual informative tax declaration associated to this tax declaration is TAX FORM 390, and it gets presented together with the forth quarter declarations in January to the following year. It lists total VAT amounts both associated to yearly earnings, and to yearly expenses, as well as all rest of business expenses VAT exempted during the year (i.e. social security payments, payrolls, public liability insurance costs, …)
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