Tax returns: filling in Modelo 303

Before you read on, you might like to check out my updated version of filling in Modelo 303 with examples.

“Modelo 303” is a VAT return form which all self-employed people in Spain must do every quarter to declare their earnings and pay tax. If you’re going self employed in Spain you will definitely come across it at some point! The exception is if you’re in the “Regimen Simplificado” (if you are you’ll probably know about it), in which case you have your own special forms to fill in (modelos 309 and 310). Fortunately, it’s not (too) difficult to fill in, and if you have your electronic signature can even be done online by following this link (and clicking on “Presentación Modelo”).

The Modelo 303 must be filled in before the 30th January, 20th April, 20th July and 20th October each year for the past trimestre (in January, fill in for Oct-Dec during the past year, in April fill in for Jan – March etc.)

Paying tax in Spain: Modelo 303

I’ve included a PDF file of my own Modelo 303, and here I’ll talk you through it.

1. First, fill in all your details. “Ejercicio” refers to the year the form is being filled in for (2014, 2015…)
2.  The “IVA Devengado” box is where you fill in the VAT you’ve yielded from your trimester’s worth of business. In “Base imponible”, write how much your earnings were before VAT was included. In the next box, write which VAT percentage you charge (in most cases and if in doubt this is 21%) and then the total amount of VAT charged on that item of work. There are several boxes in case you charge different VAT rates. Add this up.
3. In “IVA Deducible” (my favourite box), write down all the VAT you’d like to claim back for purchases you’ve made which you needed for your business. Unless you have investments or assets (currently defined as anything worth over €600), this will all go in the box marked “Por cuotas suportodas en operaciones interiores corrientes”. Be careful! This is the box the tax inspectors like to check most carefully. If in doubt, leave it out.
4. In the next box, work out the difference and write down if you have any VAT money left over from the last tax return you did. Add in any services you’ve exported to companies who don’t have a base in Spain here, as although these don’t incur VAT the government likes to keep track of them.
5. If the total difference is positive, you can either pay online or go to a bank and ask to pay in your trimestral VAT. Mark this in “importe efectuado”.
6. If the total difference is negative (i.e. you’ve spent more in VAT on purchases for your business than you’ve accumulated to hand in), mark either the box which says “a devolver” (“To return” – only advisable if you don’t mind having a lot of questions from the Hacienda) or “a compensar” (to save and use up to pay off your next VAT return).

And that’s it! Best of luck with paying taxes in Spain.

Next: annual VAT declarations – Modelo 390.