Formal obligations concerning Personal Income Tax (IRPF), Value Added Tax (IVA), and accounting for individuals and legal entities in Spain
This article provides a detailed overview of the formal obligations concerning Personal Income Tax (IRPF), Value Added Tax (IVA), and accounting for entrepreneurs, professionals, legal entities, and entities without legal personality.
Summary of Formal Obligations for Individuals: Entrepreneurs and Professionals
Accounting Obligations
- Direct Estimation Method (Normal): Accounting must comply with the Commercial Code and the General Accounting Plan. This is mandatory for commercial activities.
- Direct Estimation Method (Simplified): Complying with the accounting requirements is optional for commercial activities.
- Objective Estimation (Modules): Complying with the accounting requirements is optional.
Personal Income Tax (IRPF) Record Books
- Sales and Income Record Book: Mandatory for both normal and simplified direct estimation methods. Mandatory if net income is calculated based on turnover under the objective estimation method.
- Income Record Book: Mandatory under the simplified direct estimation method.
- Purchases and Expenses Record Book: Mandatory under both normal and simplified direct estimation methods.
- Fixed Assets Record Book: Mandatory under both normal and simplified direct estimation methods, and under the objective estimation method if amortizations are applied.
- Funds Provisions and Supplies Record Book: Mandatory under the simplified direct estimation method.
Value Added Tax (IVA) Record Books
- General Regime: Mandatory to maintain the records of issued invoices, received invoices, fixed assets, and intra-community transactions.
- Simplified Regime and Surcharge on Equivalence: Mandatory to maintain the record of received invoices.
- REAG and P (Special Agricultural Regime and Fishing): Mandatory to maintain the record of specific operations under this regime.
Compatibility of IRPF and IVA Record Books
IVA record books can be compatible with IRPF record books by adding the necessary data to meet both requirements.
The Tax Agency provides a standardized format for maintaining these books jointly.
Additional Obligations
Depending on the taxation regime, there are specific record books, such as the Special Register for Used Goods, Works of Art, Antiques, and Collectibles, and the Register for Operations under Special Regimes applicable to telecommunications, broadcasting, television, and electronic services.
Civil societies with a commercial purpose are subject to Corporate Tax (IS) for tax periods starting from January 1, 2016.
Entities under the income attribution regime engaged in economic activities must maintain a single set of mandatory books corresponding to the activity carried out, without prejudice to the attribution of income to their partners, heirs, co-owners, or participants. If they maintain accounting in accordance with the Commercial Code, they are not required to maintain IRPF record books but must comply with IVA record books.
Summary of Formal Obligations for Entities: Legal Entities and Entities without Legal Personality
Accounting Obligations:
Accounting must comply with the Commercial Code and the General Accounting Plan: Mandatory for all commercial activities.
Accounting and Corporate Books:
- Inventory and Annual Accounts Book: Mandatory.
- Journal Book: Mandatory.
- Minutes Book: Mandatory.
- Nominative Shares Register: Mandatory for public limited companies and partnerships limited by shares.
- Partners Register (limited companies): Mandatory.
Value Added Tax (IVA) Record Books
- Issued Invoices Record Book: Mandatory.
- Received Invoices Record Book: Mandatory.
- Fixed Assets Record Book: Mandatory.
- Intra-community Transactions Record Book: Mandatory.
Source: AEAT, September 2024
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