The Model 390, known as the Annual Summary Declaration of Value Added Tax (VAT), is a key document in the tax management of companies and self-employed workers in Spain. In this blog, we will explore Form 390 in detail, addressing aspects related to the submission procedure, the obligations associated with this tax form and possible sanctions for non-compliance.
1. What is Model 390?
Form 390 is an informative tax return that summarizes the operations carried out throughout the fiscal year. Specifically, this model is used for the annual summary declaration of Value Added Tax. Its presentation is mandatory for those VAT taxpayers, whether companies or self-employed, who have carried out economic activities during the tax period.
It is necessary to highlight some key points such as:
Ferquency: Presented annually.
Contents: It must detail all operations subject to VAT, both national and intra-community.
Deadline for submission: Normally it is presented during the month of JANUARY of the year following the tax period to which the declaration corresponds.
Form of presentation: It is presented electronically through the Tax Agency headquarters.
2. Procedure for Submission of Form 390
The presentation of Form 390 involves several steps that taxpayers must follow and is generally presented electronically through the electronic headquarters of the Tax Agency. Here we present a basic guide with the necessary details:
Access to the Electronic Office: You must access the website of the Tax Agency and select the “Electronic Office” or “Featured Procedures” option to access the telematic procedures.
Declarant Identification: You must first identify yourself using an electronic certificate, electronic DNI or cl@ve PIN to access the platform. Once inside you must choose Model 390, which you can find in the “Informative statements” section.
Data completion: Once inside, you must provide your identifying information, including your name or company name, NIF (Tax Identification Number), and the period to which the declaration corresponds.
-
Breakdown of Operations: Details the operations carried out during the fiscal year subject to VAT. This includes exempt operations, intra-community acquisitions, among others.
-
Regularization of Deductions and Returns: Regularize pending deductions and request any refunds to which you may be entitled.
-
Calculation of the Result of the Period: Calculate the final result, which will reflect whether you have generated a payable balance or a credit balance.
Telematic presentation: Once all the data has been included, the telematic presentation option must be selected and proceed to send the data entered and thus complete the presentation of the model. When this step has been completed, you will receive an electronic receipt confirming said presentation. It is necessary to preserve this as it serves as evidence for a possible inspection.
3. Sanctions associated with Model 390
The presentation of Form 390 is a fundamental tax obligation, and failure to comply with it may result in sanctions. These vary depending on the severity of the violation and may include fines and surcharges. Below, we explain the possible sanctions that currently exist:
Fixed fine for non-appearance: The Tax Agency may impose a fixed fine for failure to submit the model within a set period. This fine is applied regardless of the amount of undeclared operations since it is applied for failure to present.
Surcharge for late declaration: If the declaration has been submitted after the deadline, a surcharge will be applied. This will be calculated on the fee resulting from model 390 and increases as more time passes since the expiration of the term.
Penalties for tax violations: They are sanctions that penalize conduct contrary to tax regulations. The amount is calculated as a percentage of the taxable base and this may vary depending on the type of violation.
Proportional fines: They are fines directly related to the tax base of undeclared operations and their intention is to proportionally penalize tax non-compliance. It is also established with a percentage on the impossible basis and may vary depending on the nature of the violation and other factors.
4. Obligations Associated with Form 390
In addition to timely submission, there are other obligations associated with Form 390 that taxpayers must take into account:
Conservation of Documentation: You must keep the documentation that supports the declared operations for at least four years from the end of the fiscal year to which they correspond, since the Tax Agency may require its presentation in the event of an audit. This can be invoices, receipts, contracts, etc.
Correct VAT accounting: It is essential to keep an adequate accounting record of the operations subject to VAT carried out during the fiscal year in order to accurately complete Form 390.
Data and Error Review: Before submission, conduct a thorough review of the data to avoid errors that could result in penalties.
Periodic Regularizations: If necessary, make periodic adjustments throughout the year to avoid significant discrepancies in the annual declaration.
Model 390 is a fundamental tool in the tax management of companies and self-employed workers in Spain. Complying with the obligations associated with this form, from the timely presentation to the conservation of the supporting documentation, is essential to avoid sanctions and problems with the Tax Agency. It is recommended to have the support of tax or accounting professionals to guarantee correct and efficient compliance with these obligations and avoid punishable errors at all costs.
juice vector image on Freepik
Image Freepik
