The Annual Statement of Operations with Third Parties, model 347, must be submitted to the Tax Agency every January, with respect to the previous year (previously it was done in February).
This model must declare the total annual amounts of transactions that a person or entity (a NIF) has made with another person or entity (another NIF), provided that this total annual amount has exceeded the figure of 3.005,06 euros in value absolute; this is, both positively and negatively.
Deliveries and acquisitions are computed separately. In the annual statement, the information is provided by itemizing the operations by quarter.
The regulation of this statement includes instructions precise on various aspects: when to present it, who are the obligated, how should the information be presented, what is the criterion of temporary imputation and what are the operations that must be included and which are not.
In this article we are going to refer mainly to the obligation to declare, or not, certain types of operations, about which doubts may arise.
YES - Operations that must be declared in the 347 model
- Advances from customers to suppliers must be included in the annual statement of operations with third parties. Subsequently, when the operation is carried out, the total amount thereof shall be declared reduced in the amount of the advance already declared, provided that the result of this reduction exceeds, along with the rest of operations carried out with the same person or entity, the limit of 3.005,06 euros.
- They should be included in the model 347 the services rendered to established in the Canary Islands. Operations that are not included in the model 347 are the deliveries and acquisitions of goods that involve exports or imports (shipments between the Spanish peninsular territory or the Balearic Islands and the Canary Islands, Ceuta and Melilla).
- Services related to exports are included, both those provided and those received.
- Amounts received in cash greater than 6.000 euros. Both when they are received after the presentation of the statement in which operations are included, and when the amount is reached after having submitted the declaration, these amounts will be reflected in the corresponding statement for the subsequent year in which it was made. the collection or the amount indicated above had been reached. Bearer checks are not understood within this concept.
- The public subsidies received should be included in the declaration if they are not refundable, they have been received in relation to the business or professional activity, and also the annual amount from each Public Administration exceeds the 3.005,06 euros. The subsidies, aid or aid granted to taxpayers shall be deemed paid on the day the corresponding payment order is issued, or if it does not exist, when the payment is made. The key with which they must be consigned is the B: deliveries of goods and services, upon assimilating the subsidy to a sales income.
- Cooperatives are companies with their own legal status, therefore, the partners are considered third parties. Cooperatives must relate in the declaration all persons or entities with whom they have made both deliveries of goods or services, and acquisitions of goods and services, including their partners.
- They are not considered to be a business premises lease for the purposes of the annual completion of the 347 model: (i) the lease of facades for the installation of advertising, (ii) the lease of roofs for the installation of mobile telephone antennas, ( iii) the lease of galleries that run through the subsoil to install telephony, gas, electricity, etc. networks. In these cases, therefore, it will not be necessary to record the cadastral reference of the properties, although the aforementioned leases must be declared applying the rest of the provisions established in general for this statement, since it concerns the development of business activities.
- Employers and professionals established in Spain must include benefits and / or purchases of services made to / by persons not residing in Spain, except in the case of:
- Operations whose consideration has been subject to withholding on account of Income Tax, Corporation Tax or Income Tax for Non-Residents, which are declared through the corresponding annual withholding summaries.
- Transactions carried out directly from or for a permanent establishment of the taxpayer located outside Spanish territory, unless it is based in Spain and the person with whom the transaction is carried out is acting from an establishment located in Spanish territory.
- Intra-community operations that must be related in the 349 model.
- In general, any other operation legally exempted from the 347 model.
- External self-consumption should be declared (free operations with third parties) if they are subject to VAT and not exempt. They should not be declared when they are not subject or are exempt from VAT.
- The entities integrated in the different public Administrations must include in the annual declaration of operations with third parties the subsidies, aids or grants that they grant from their general budgets or that they manage on behalf of entities or bodies not integrated in said public Administrations.
- Vehicle dealers must list in the declaration those who have made deliveries in excess of 3.005,06 euros. They do not have to include the operations for which they did not have to issue an invoice with data from the recipient.
- The insurance companies must include in the 347 model the insurance operations based on the amount of the premiums or compensation received and the compensations or benefits paid. Also the extorts insofar as they are a refund of premiums as a result of the insurance contract.
- If the amounts received annually as a justification for a compulsory expropriation exceed 3.005,06 euros, they must be declared in the 347 model, unless the operation is one of those provided for in article 33.2.a) of Royal Decree 1065 / 2007 (operations by which the mandatory taxpayers should not issue and deliver invoice or equivalent document consigning the identification data of the recipient).
- The services provided should be included, where appropriate, by the compensation boards to those who made the contributions, as well as the acquisitions of goods and services performed by them.
NO - Operations that do not have to be declared in the 347 model
- The payment of a dividend does not correspond to a delivery of goods or a provision of services, so it does not have to be included in this declaration; nor any other amount that corresponds to a participation in benefits.
- Deliveries of land made to the compensation boards that act as fiduciaries are not included, since the power to dispose of the land is not transmitted.
- The recipient of the insurance operations will not have to declare the services rendered by the taxpayers who did not have to issue and deliver the invoice.
- Deliveries and acquisitions of goods that involve exports or imports (shipments between the Spanish peninsular territory or the Balearic Islands and the Canary Islands, Ceuta and Melilla) must not be included.
- For leases of 1 premises after 2014 in January, the design of the 180 model has been modified (Annual summary of withholdings and income on account on yields from the lease or sublease of urban buildings), to include the corresponding information in it to the cadastral references and the necessary data for the location of leased urban properties. With this modification, the information included in it has a content that coincides with the Annual Statement of transactions with third parties (model 347) for leasing operations of urban properties that are business premises and are subject to retention, being excluded from duty of declaration of the lessor in the 347 model.
- For the Communities of Owners and entities or establishments of a social nature (referred to in article 20.Tres de la LIVA) that are excluded from the duty to declare the supply operations of the water and electricity companies. If other concepts are included in the invoices, it will be necessary to distinguish according to their supply relationship: (i) if it is a concept that objectively and legally is related to such supply, in such a way that it is included as a consequence of the formalized contract, without can be negotiated between the supplier and the supplier (the concept, not the amount that can be negotiated), should be considered as part of the supply and, therefore, not included in the 347 model; (ii) on the other hand, those items that the suppliers offer by taking advantage of their commercial structures and that, in addition, are subject to contracting independent of the supply, such as, for example, insurance or repair, although they may have any connection to the affected supply, so in this case they should be incorporated in the 347 model declaration.
- Self-consumption should not be declared other than operations carried out with other persons or entities, that is, internal self-consumption is not declared.
- The fees paid to Social Security or taxes (IAE, IBI) should not be included in the 347 model because they are not deliveries of goods and services and, therefore, are not considered operations.
- The supplies are not operations related to the intermediary manager or adviser, who should not include them in his declaration. Those who must include them are the suppliers and final customers identified in the invoice, in case they exceed the corresponding figure.
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How operations are valued
The amount to be declared must include the amount of the VAT quotas that, if applicable, have been passed on and without excluding the amounts that may be subject to retention (with VAT and without subtracting the withholding).
In transactions with the investment of the taxpayer that must be included in this declaration, the amount of the consideration, VAT excluded, shall be consigned, both by the supplier and by the client.
Collections in kind. The statement does not distinguish between collections in cash or in kind, so all are taken into account, although the latter form of collection requires its valuation at market prices.
When there is partial affectation of goods or services acquired, the total value acquired must be taken into account, regardless of whether part of said value may not be affected by other tax criteria.
The amount of the transactions will be declared by the net annual value (sales or acquisitions less refunds) provided that said net has exceeded the amount of 3.005,06 euros in absolute value (ie, positive or negative).
The operations that must be related in the annual declaration of operations with third parties will be recorded in the period in which the registry entry of the invoice must be made. If the invoice was pending receipt at the close of the fiscal year and was received and accounted for during the subsequent period, it will be included in the 347 model corresponding to this subsequent exercise.
What are the operations that must be identified and recorded separately
In the 347 model, the following operations must be reported separately:
- Leasing of business premises. And the rents?
- Insurance operations. They only have to be identified by the insurance entities.
- Services rendered by travel agencies, in whose contract they intervene as mediators on behalf and for others, provided they meet certain requirements.
- Mediation services in the name and on behalf of third parties relating to passenger transport services and their luggage provided by the travel agency directly to the recipient of said transport services.
- Charges on behalf of third parties of professional fees or rights derived from intellectual, industrial, author or other property on behalf of their partners, associates or collegiate companies, associations, professional associations or other entities that perform these collection functions .
- Cash amounts greater than 6.000 euros received from any of the persons or entities consigned in the declaration.
- Transmissions of real estate subject to VAT.
From the 1 of January of 2014 (declaration of the 2014 exercise to be presented in February of 2015) there are three new assumptions:
- The operations to which the special regime of the VAT cash basis applies.
- The operations in which the investment of the taxpayer takes place, in accordance with article 84.Uno.2.º of the LIVA.
- Operations that have been exempt from VAT because they refer to assets linked to or destined to be linked to the deposit regime other than customs.
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