A company's tax obligations include a series of informative declarations. These declarations collect data from a specific period so that the Administration can cross-check information and identify possible inconsistencies, which could subsequently result in penalties. One of these informative forms, which is annual, is Form 347.

---

Form 347 is the Annual Declaration of Operations with Third Parties, in which all operations carried out by the declarant with the same person or entity that exceed €3,005.06 in absolute value must be declared.

This declaration, as previously mentioned, is merely informative, but its presentation to the State Tax Administration Agency is mandatory. To do this, the breakdown of operations with clients and suppliers that throughout the year exceed €3,005.06 must be supplied, with the breakdown of said amounts by quarters, and including VAT/IGIC.

Let's illustrate it with a detailed example:

 

The usual practice is to contact suppliers or clients, so that both verify that the amounts to declare coincide, and thus, there are no discrepancies in the declaration.

In the event that amounts are received in cash, these must be supplied in annual terms only and not in quarters as indicated in the previous example.

In cases where returns, discounts, bonuses and operations that are rendered void or price alterations occur, as well as in the event that a bankruptcy declaration order is issued that give rise to modifications to the taxable base of VAT/IGIC, taking place in a calendar quarter different from that in which said operation should have been included, these must be reflected in the calendar quarter in which said modifications occurred, provided that the result maintains the total annual value of €3,005.06.

Professionals who have issued their invoices with withholding do not have to include these operations in Form 347, since there is an obligation, on the part of the recipient of the invoice, to report these operations through Form 190. Recipient, who will also not be obliged to include it in Form 347. The same occurs with premises rentals, whose operations are reported in Form 180.

 

• Form 415 (Canary Islands Tax Regime)

 

Form 415 is the equivalent of Form 347 in the Canary Islands, where operations carried out throughout the calendar year subject to the Canary Islands General Indirect Tax (IGIC) are collected. Those operations that exceed 3,005.06 euros will be reported in Form 415. Therefore, a Canary Islands taxpayer must present both Form 347 and Form 415.

Operations subject to and not exempt from IGIC will be taken into account, declaring the total amount of the considerations, adding the quotas charged or supported by said tax.

In Form 415, unlike Form 347, operations subject to withholding must be reported, as there is no reference regarding periodic information supply obligations.