Modelo 390 consolidates your entire year's VAT activity into one annual summary. Think of it as the final chapter of your tax story where all your quarterly filings come together to paint the complete picture of your business's VAT obligations. Best of all, you don’t have to pay anything when filing this return.
When must you file Modelo 390?
The deadline for filing your Modelo 390 is January 30th of the year following the tax period. This means for your 2024 tax year, you'll need to submit your annual VAT return by January 30, 2025.
Mark this date clearly in your calendar. Unlike quarterly returns where you might have some flexibility, the annual VAT return has a firm deadline with no extensions available.
If January 30th falls on a weekend or public holiday, the deadline extends to the next working day. However, don't rely on this. Plan to file well before the deadline to avoid any last-minute complications.
Who must file Modelo 390?
As an autónomo in Spain, you're required to file Modelo 390 if you're registered for VAT purposes. This applies regardless of whether you've had VAT transactions during the year.
Here are the key scenarios where filing is mandatory:
- Active VAT Registration: If you're registered for VAT and conduct business activities subject to VAT, you must file annually.
- Zero Activity: Even if you had no VAT-liable transactions during the year, you still need to submit a nil return to maintain compliance.
- Seasonal Businesses: If your business operates seasonally, you're still required to file covering the entire calendar year.
- Multiple Activities: Autónomos with multiple business activities under one VAT number consolidate everything into a single Modelo 390.
The only exception is if you've officially ceased business activities and deregistered from VAT before the year-end.
Common Mistakes to Avoid
Even experienced autónomos can stumble when preparing their annual VAT return. Here are the most frequent errors and how to prevent them:
- Mismatched Quarterly Totals: Your annual return must reconcile with your quarterly filings. Discrepancies trigger automatic reviews and potential penalties. Keep detailed records throughout the year rather than trying to reconstruct them later.
- Incomplete Expense Claims: Many autónomos under-claim VAT on business expenses. Ensure you've captured all legitimate business purchases, from office supplies to professional services.
- Wrong VAT Rates: Spain has multiple VAT rates: 21% standard, 10% reduced, 4% super-reduced and 0% for certain services. Double-check that you've applied the correct rate to each transaction type.
- Missing Intracommunity Transactions: If you provide services to other EU countries, these transactions require special treatment on your VAT return. Don't overlook reverse charge mechanisms.
- Late Filing Penalties: Submit your return on time, even if you can't pay immediately. Late filing penalties are typically higher than late payment penalties.
