In Spain, a company is considered a Big Business if its turnover exceeds a certain amount in a fiscal year. The categorization of Big Business means that, in addition to referring to its size in the business fabric, it assumes additional responsibilities. Knowing the new obligations that a company must assume helps to better financial and operational planning.
1. When is it considered a large company?
According to the Tax Agency the company, entrepreneur or professional that exceeds 6,010,121,04 euros of turnover in one year becomes the Great Company, from 1 January of the following year.
The change increases the tax controls, declarations and possible audits. Additionally, you may require advanced systems to report operations and comply with regulations.
2. Tax obligations of a large company
Additional tax requirements that must be fulfilled in the category of Big Business are the ones shown below.
1. Monthly tax returns:
- The VAT (Model 303) happens to appear monthly.
- The Model 111 of the retentions and revenues to the account of the IRPF, also goes on to present monthly.
- In case of being subject to the Tax on non-reusable plastic packagingthe declaration shall also be made on a monthly basis.
2. Immediate Information Supply (IIS).
Large companies are required to use the Immediate Information Supply (IIS) for the management of VAT, which means the electronic almost real-time shipment of invoices issued and received to the Tax Agency.
3. Divided payments of corporation tax.
The calculation of the participated payments of the Company tax should be carried out in the manner envisaged in the Section 40.3 of the Corporate Tax Act, making settlements with reference to the accumulated tax base for the financial year.
4. Communication to the Tax Agency.
The change of category must be communicated to the Tax Agency by the presentation of the Model 036 before 31 January of the year in which it enters into force the new fiscal condition.
3. What do I have to do if the company ceases to be Big Business?
When invoicing falls below the threshold of EUR 6,010,121.04 during a calendar year, loses the status of Big Business from 1 January of the following year.
The company must inform the Tax Agency of the change by presenting the Model 036 within the same period as mentioned above.
4. What are the consequences of losing the status of Big Business?
The consequences of the change are that the periodicity of tax returns Once again, it is quarterly: VAT (Model 303) and Model 111.
Another consequence is that the obligation to use the IBS disappears. The company is no longer obliged to use the IBS. Immediate Information Supply, unless it is registered in the Monthly VAT Return Register or takes on the Special regime for groups of entities in VAT.
The participated payments of the Company Tax are modified, calculated according to the standard modality, applying the rules of the Section 40.2 of the Corporate Tax Act.
5. Calculation of the volume of operations
Includes all supplies of goods and services performed by the company, excluding VAT and other equivalent taxes. This calculation also includes VAT-exempt transactions and those that, by rules of location or investment of the taxable person, are not subject to this tax.
6. How can Afianza help?
Large companies must adapt their tax management to the rules of the Tax Agency, which means submit monthly declarations, use the IBS and modify split payments.
At Afianza we have expert teams that can advise you and accompany you in all the necessary processes. Complying with these rules is essential to avoid tax problems, if you need help or have doubts, ask us without commitment.
To find out more:
https://sede.agenciatributaria.gob.es/Sede/empresas/grandes-empresas.html
