Form 347 in Spain is an annual informative statement which lists all operations with customers and/or suppliers, provided that the total amount of the operations exceeds the annual amount of € 3,005.06 (including VAT).
The statement of operations with third parties is submitted in February (from 1st to 28th) every year in electronic format.
The Tax Office seeks to cross-reference data with a view to identifying any discrepancies between a supplier and a customer’s declarations in relation to a particular operation.
If the amounts do not match, the Tax Office may investigate to ascertain whether the discrepancies are the result of fraudulent acts.
It is important to check that the amounts that we declare match those declared by our suppliers or customers in relation to operations carried out with us. It is usual practice to contact suppliers to check whether a particular invoice is missing, either because we have not received it or there is a modification which has not been reported to us. This practice is also useful for checking that our accounts do not contain any mistakes.
However, the following persons are not required to submit them:
- Anyone who performs business or professional activities in Spain without having the head office of their economic activity on Spanish territory.
- Any tax debtors who apply the system of Immediate Supply of Information (SII).
- Any natural and legal persons under the income allocation system whose income tax is calculated by the objective estimation method (modules) and, at the same, under any of the following special systems: simplified or agriculture, livestock and fishing or sales equalization.
Failure to submit form 347 or any incomplete or inaccurate form shall be subject to a minimum penalty of € 300 and a maximum penalty of € 20,000. The amount is calculated by applying a € 20 penalty for any missing item or set of data relating to a person or entity.
The following operations are declared in form 347 related to operations with third parties:
- Deliveries and purchases of goods and services, whether or not they are subject to or exempt from VAT. Since 2014, any purchased goods and services aside from professional and business activities have had to be declared exclusively for private social entities or organisations and communities of property owners.
- Real estate operations.
- Non-refundable subsidies and aid.
- Operations of insurance entities.
- Advance payments to customers and suppliers.
- Leases not subject to withholding tax.