As previously discussed in earlier articles, exceeding the turnover threshold of € 6,010,121.04 during a calendar year—calculated in accordance with Article 121 of Law 37/1992 of December 28 on VAT, or, for taxpayers domiciled in the Canary Islands, Article 51 of Law 20/1991 of June 7 on the modification of the fiscal aspects of the Canary Islands’ Economic and Tax Regime—leads to the acquisition of Large Enterprise status for tax purposes as of the following calendar year.
This change entails new tax obligations and alters both the frequency and deadlines for filing various tax returns. It is essential to clearly understand the required steps and corresponding timeframes in order to avoid mistakes or penalties.
How much time do I have to act after exceeding the volume of operations?
The obligation to notify the Tax Agency of the change in status to Large Company must be met by submitting Form 036, exclusively by telematic means, using a recognized electronic certificate.
The deadline for this communication is one month from January 1 st of the year in which this new status comes into force. In other words, if the threshold has been exceeded during 2024, the communication must be made before January 31 st, 2025.
What does Large Company status entail for tax purposes?
1. Value Added Tax (VAT)
VAT self-assessments using Form 303 must be filed on a monthly basis, instead of quarterly. The general deadline is within the first thirty calendar days of the month following the reporting period, except for the January return, which may be submitted up to the last day of February.
Upon acquiring Large Enterprise status, it becomes mandatory to use the Immediate Supply of Information (SII) system for the electronic maintenance of VAT record books.
In the event of requesting monthly VAT refunds, registration with the REDEME is required, which also entails the obligation to use the SII system, even if the taxpayer is not classified as a Large Enterprise.
2. Withholdings and payments on account
Forms such as 111 or 115, which until now could be filed quarterly, must now be submitted monthly. The deadline is within the first twenty calendar days of each month, with respect to the withholdings made the previous month.
3. Corporate Income Tax installment payments (Form 202)
They must be filed in the first twenty calendar days of April, October and December, and using the calculation method of article 40.3 of the Corporate Income Tax Law, based on the accumulated result of the year.