Do you know everything you need to pay tax on before 20 April?
The end of the first quarter and it’s time to sort out all the taxes and duties you’ll need to pay to the tax authorities from 1 to 20 April. If you don't know all the taxes you have to pay in these first three months of 2021, here we’ll explain what they are.
1. Form 303, VAT
The model 303 is the quarterly Value Added Tax return (VAT) in the case of The Canary Islands have the IGIC. A mandatory submission for all employees, in general. Here, you will be required to make an instalment payment of the VAT/IGIC, in other words, you’ll pay the difference between the VAT/IGIC the amount you have charged your customers and the amount you have paid your suppliers yourself.
This form must be submitted by any business owner carrying out an activity subject to VAT/IGIC, regardless of the type of business in question (self-employed, company, co-operative, etc.).
Furthermore, the landlords of property or assets They must also submit it; the only exception to this rule will be those professionals whose activities are exempt from VAT/IGIC (Education, healthcare and psychology services, etc.).
To complete the form, you can access it from here.
2. Form 368, VAT under special schemes
This model is particularly suitable for all companies that export electronic services or telecommunications to countries in the European Union. This applies to all self-employed people and small businesses that export to Europe, requiring them to state the VAT rate for each country on their invoices.
However, it is important to bear in mind the services provided. These include all telecommunications services, radio and television programmes, web hosting, web design and development, and software maintenance. They also include the downloading of games, films or music, the sale of digital content (newspapers, publications, magazines, distance-learning courses) and games of chance.
If your business does not fall into any of these categories, you will not need to submit this form.
To avoid having to declare VAT in each country, you can opt for this special scheme and choose a only one country as the ‘Member State of identification’, for example, Spain. This way, you’ll declare VAT for all customers, even if they’re not all from Spain, via Mini One-Stop Shop.
- Form 130, Personal Income Tax.
This is the quarterly income tax return where the instalment payment of the tax is settled. In total, there are four quarterly instalments and it must be submitted by all individuals who carry out business activities under the direct or simplified assessment schemes.
Under this model, a 20% on activity performance and if, at the end of the year, you have paid more than you owe, you will receive a refund.
This form must be submitted by self-employed individuals carrying out a professional activity, unless at least the 70% form for any income derived from that activity on which tax had been withheld.
Business owners registered for business activities must also submit it, unless they are covered by the modular scheme (Form 131). Similarly, those who are members of a community of property must submit it in accordance with their percentage share in that organisation.
You can submit this form for your first-quarter tax return here.
- Form 131, Personal Income Tax, Simplified Scheme.
This model is like the 130, but in the case of self-employed individuals, business owners and joint-ownership entities that are taxed under the Objective Assessment scheme (or ‘modules’).
You can fill it in here.
- Form 111, withholding tax (personal income tax)
This model corresponds to the Quarterly income tax return for companies and self-employed individuals with employees or who have engaged the services of self-employed workers who issue invoices with tax deductions. This involves declaring the withholdings made from employees’ payslips, payments to self-employed contractors, severance pay, etc. This is money which the tax authorities subsequently refund to the employee or the employer, as appropriate.
When is tax deducted at source?
It must be submitted by all self-employed people and business owners who have deducted amounts in the following circumstances:
- Payslips and paysheets.
- Use of images.
- Prizes for taking part in competitions.
- Income from certain activities, such as those carried out by professionals, livestock farmers, foresters, business owners, industrial property owners, etc.
- Capital gains from forestry operations on public woodland.
You can fill in this form here.
- Form 202, Corporation Tax.
This form is used to settle and pay advance payments towards corporation tax and non-resident income tax (only in certain cases). This involves paying the full annual tax liability in advance; this amount will subsequently be deducted from the total annual amount due.
You must submit this form tAll businesses with a turnover in excess of 6 million euros (regardless of the profit). This also applies to those who did not reach that figure in the previous tax year but who made a profit.
You can complete this form via the Treasury’s Online Portal exclusively.
- Form 115, Withholding tax on rental income.
This is the quarterly return for withholding tax on urban property rentals, whether they are premises, industrial units or offices, where we carry out our business activities.
It is intended for both self-employed individuals and businesses who are renting any of the premises listed in order to carry out their business. The deductions made each month must be shown on the rent payment invoices.
In other words, You will declare to the tax authorities how much money you have failed to pay to your landlord as an advance against your income tax (if you are a private individual) or as an advance payment of corporation tax (if you are a legal entity). You must pay this amount to the Tax Authority.
Rents not exceeding 900 euros per year and residential tenancies, amongst others, are exempt from this scheme.
You can fill in the form here.
- Form 123, Withholding tax on capital gains.
Finally, amongst the taxes for the first quarter, Form 123 is the a return for the settlement of withholding tax on certain types of income and returns on property capital. It is intended for SMEs and the self-employed who make payments on account of corporation tax, non-resident income tax and personal income tax.
You can fill in this form here.
All in all, it is time to start sorting out the forms you need to submit and pay your first-quarter tax as soon as possible, so that you can carry out all the necessary procedures. However, this can be a tedious task and one for which you may not have the time, so you can always rely on a experienced tax adviser.
Exim Asesores, Tax, Labour and Accounting Consultancy for the self-employed and SMEs, We provide you with a team of specialist advisers in each area. We handle tax, accounting and employment matters either in person or remotely. You can contact us by telephone on 680 830 406, via Skype, by email or via Facebook Messenger.
Ask us for an appointment without obligation at 680 830 406 or in dromo@eximasesores.com
