All You Need to Know About Annual VAT Returns in Spain

Most companies registered for VAT purposes in Spain must submit an Annual VAT return by the end of the year. This is a recapitulative return for informative purposes, so there is no VAT payment due upon submission. This return is also known as modelo 390. Instructions are published by the tax authorities and updated if necessary every year.

What is the deadline for submission?

Annual VAT returns is Spain must be submitted no later than the 30th day of January following the reporting period. If this day falls in weekend, deadline will be moved to the next working day.

The Spanish annual VAT return 2024 is due on 30/01/2025.

When the Annual VAT return is not due?

Spanish Annual VAT return is not due in the following cases:

• If the company is submitting the SII books there is no obligation to submit the Annual VAT – this could be case of a company under REDEME (monthly refund regime), VAT groups, or Big companies – “Grandes empresas” with an annual turnover higher than 6.010.121,04 €.
• Companies under simplified VAT regimes related to rental of immovable property.

How to Sumit the Spanish Annual VAT returns?

The submission of the Spanish Annual VAT returns is always made via an electronic certificate or Clave Pin. There is no possibility of paper submission.

Which Businesses Are Exempt from the Spanish Annual VAT Returns?

The Spanish Annual VAT return is not due in the following cases:

• If the company is submitting the SII books there is no obligation to submit the Annual VAT – this could be case of a company under REDEME (monthly refund regime), VAT groups, or Big companies – “Grandes empresas” with an annual turnover higher than 6.010.121,04 €.
• Companies under simplified VAT regimes related to rental of immovable property.

Companies filing monthly VAT returns and SII Books should not submit the Annual VAT return, but they should complete an extra section in the December VAT return (or modelo 303) to report the details of the annual turnover in Page 4. This also applies to certain quarterly taxpayers that are voluntarily reporting the SII Books.

Also, this is a good opportunity to evaluate if a company filing monthly VAT returns must change the frequency of filing – depending on whether the annual turnover is above or below 6.010.121,04 EUR. If the turnover is below this amount the company will switch to quarterly periodicity – and additional form should be submitted to communicate the change to the tax office.

Key January Checks 

• Reconcile data: Amounts reported in the Spanish VAT return must be in line with the figures reported in the different quarters during the reporting period year.
• Additional data requested in the annual: All transactions performed by the taxpayer during the year should be reported in the Annual VAT return. This also includes exempt transactions that are not reported in the periodical VAT returns (303).
• Nil annual VAT returns are due.
• E-commerce specifics: intra-Community distance sales of goods, distance sales of imported goods and B2C services must be reported in boxes 110, 126 and 127 depending on the specific scenario described.  
• Credit positions: in case a company is in refund position by the end of the year, the Q4 VAT return – last VAT return of year in Spain, is normally used to either carry forward this amount, or decide if we will request the VAT refund. The Q4 VAT return of the year is the only reporting period where companies can request a VAT refund via VAT return in Spain. The decision shall be reflected also on the annual VAT return - submitted within the same deadline.
• Annual turnover: When you prepare the Annual return always check the total turnover reported (box 108). If the turnover exceeds 6.010.121,04 EUR the company will become a “Big company - Grandes Empresas” and will fall under monthly periodicity. If this is the case they will swich periodicity and also fall under SII books obligation. A 036 form will need to be submitted (within 1 month) to communicate this change.
• REDEME and Import deferral: those companies who have applied for REDEME or import deferment in November last year, should make sure to reflect this correctly in the January 2024 VAT return.