Form 390: The Annual VAT Summary

form-390

Many self-employed persons and companies wonder what Form 390 consists of, especially when everything is new and the obligations to which they are subject are not well known. Knowing a little more about this declaration form is of vital importance to be able to comply properly with tax obligations.

What is Form 390?

Form 390 is a purely informative declaration that must reflect the annual summary of the operations relating to the settlement of VAT. In essence, it is an extended version of Form 303, which is filed together with the closing of the accounts for each financial year.

Since it is an informative declaration, no amount is payable to the tax authorities, but the declaration consists of a summary so that the self-employed person or company in question or the SME that submits it can prove that there is a correlation between the quarterly forms submitted. 

If there are errors in the declaration or if there are discrepancies between the quarterly Form 303 and the annual Form 390, tax audits will likely be carried out and penalties will be imposed for the incorrect declaration of the data. 

Who is obliged to file form 390?

Form 390 must be completed by any entrepreneur or professional (self-employed or company) who carries out an activity subject to VAT, regardless of the type of entrepreneur or the result of the return.

The following cases are exempt from filing this form:

  • Workers who must file Form 368, a tax document corresponding to radio, telecommunications or television broadcasting services.
  • Workers who make periodic VAT self-assessments.
  • Self-employed persons who register their VAT books through the Tax Agency’s Electronic Headquarters.
  • Businesses with a turnover exceeding EUR 6 010 121.04 for VAT purposes.

 

In 2014, the regulations for filing Form 390 were updated, excluding from filing this form self-employed persons whose tax activity was in modules and those who were engaged in the leasing of urban real estate.

In addition, in January 2017, the Immediate Supply of Information (SII) came into force for large companies, companies registered in the monthly VAT refund scheme (Redeme), and VAT groups, which showed that these groups were not obliged to file Form 390, given that the tax authorities have their tax registry books.

Deadline for submission of Form 390, annual VAT summary

The deadline for filing the annual VAT summary Form 390 is from 1st to 30th January of the year following the financial year.

How to file and complete Form 390?

For those taxpayers who are obliged to communicate with the Administration by electronic means, Form 390 can be filed using a personal electronic certificate, with third parties or also using the Pin Key. As with the vast majority of tax forms, it is possible to file electronically through the Tax Office’s Electronic Headquarters with a digital certificate.

If Form 303 has been filed previously, the filing of Form 390 is considerably simplified.

To file this annual VAT summary form, it is necessary to have the following information:

  • Origin of expenditure and income to be able to check whether domestic, intra-Community, export, etc. transactions are domestic, extra-Community or intra-Community in nature.
  • Amounts of the taxable amount and the amount of the VAT liability.
  • VAT rate 4, 10 or 21%.

It is necessary to differentiate between expenditure on current operations or goods and investment goods operations, it should always be noted that investment goods are considered as expenditure if their amount exceeds 600 euros.

Form 390 is made up of the following sections:

  • Identification data of the taxpayer where the tax identification number (NIF) and the name of the self-employed person or company must be indicated, including whether it belongs to any of the excluded groups.
  • Accrual, detailing the tax year and whether the return is a substitute return, in which case the reference number of the return it replaces must be provided.
  • Statistical data, detailing the activities to which the declaration refers with their code and their IAE epigraph. These activities are shown from most to least important according to the operations criterion.
  • Details of the representative are to be completed only if acting on behalf of a third party.
  • VAT accrued where the VAT accrued is indicated, i.e. the income from the activity carried out broken down by type of operation carried out under the General System and the VAT rate applied, if taxed under the simplified model by modules, only item 6 must be completed.
  • Deductible VAT, i.e. the VAT on the expenses of the transactions carried out. The difference between accrued and deductible VAT must be calculated.
  • Result of the annual settlement. This section must only be completed by self-employed persons who pay taxes to the State Administration and reflects the total quarterly returns.
  • The volume of operations, where the summary of all income is detailed according to the operations carried out. There are two exclusions: transactions carried out in fixed establishments outside the territory of application of VAT and the self-consumption of goods detailed in letters c and d of number 1 of article 9 of the VAT law.
  • Specific operations. To be completed if special operations have been carried out.
  • Pro-rata. It specifies the economic activity and the CNAE code, the total amount of the operations, the amount of the operations with the right to deduct, the percentage of the pro-rata and the type of pro-rata (general or special).
  • Activities with differentiated deduction regimes which list the activities with differentiated deduction regimes and the breakdown of deductible VAT for each transaction.

Another option for correctly filing Form 390 is to contact your tax advisor, who will provide you with all the information you need to carry out this procedure. If you do not have one, please contact our tax advisors in Barcelona by telephone or email.

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