“Modelo 303” is the Spanish quarterly VAT return form that all self-employed professionals (except VAT-exempt ones) must complete every quarter. Here’s a guide to filling in Modelo 303, with some screengrabs below to help you out.
Declaring and claiming back VAT with Modelo 303
Do you need to fill in Modelo 303? Modelo 303 must be completed by all freelancers every quarter (January, April, July, October) between the 1st and 20th day of the month. The exception is businesses who are exempt from VAT (teaching, for example, falls into this category). Non-European clients also do not pay VAT, so freelancers with solely international clients do not need to complete this.
How much VAT do I pay? Upper limit is 21%, and this applies for the majority of cases. This is calculated by adding 21% to your total earnings. It is not 21% of your total earnings. 100 + 21% is not the same as 21% of 100. So if you earn €121, you should pay €21 in VAT, and if you earn €100, you should pay €17,35.
Sign up to make declarations online. This is now obligatory.
Pay in your VAT. Work out how much VAT you need to pay, and then follow this link to go to the Government’s website where you can pay it in. Choose the option “Autoliquidaciones > Pago mediante cargo en cuenta” (pay via bank charge) and fill in your bank details. Copy down carefully the reference number you are given (you can get this back if you forget, but doing so is complicated).
Fill in Modelo 303.
Step by step, here’s how,,,
- Follow this link.
- Choose from the heading “Si desea confeccionar y presentar el modelo de forma electrónica“.
- You will probably need to choose the option that includes the Regimen General – the Regimen Simplificado is for those trading in agriculture, fisheries, livestock and wholesale goods).
- IVA devengado (VAT yielded). In boxes 1, 2 and 3 (and others if you have more than one VAT rate), write in your earnings (amount before VAT has been added on), VAT rate and total VAT to pay. This is added up in box 27.
- IVA deducible (VAT you’re claiming back). In box 28, write the amount of any business expenses before VAT has been deducted. To the right of this, add up all the VAT you are claiming back. Investment goods (“bienes de inversión“) include anything that costs over €600, and are added up in box 30. Add up the total in box 45, and work out the VAT you need to pay in 46.
- Información Adicional. Here you add in any extras. In box 60, for example, I am required to write down the international earnings I have which do not generate VAT.
- Resultado. Add it all up. You can also see that I’ve filled in box 67 (“Quotas a compensar…“), because last trimestre I actually came out being owed VAT and decided to reserve this to pay off future taxes with.
- Finally, tick the box that says “Resultado positivo > Ingreso total” and add in your details and the reference number you collected in Step 4. If your VAT payments have come out negative (the Hacienda owes you more than you need to pay in), you can either choose to claim this back or the option “A compensar“, which retains the amount you have been owed to claim back at a future date, like I have done here.
Finally, sign and send!