- What is it for?
With this form you will know whether you have to pay, offset or refund VAT.
This form also informs Hacienda of certain transactions even when they do not include VAT, such as intra-Community transactions (transactions within the EU), exports or imports.
- Who has to submit this form?
All freelancers in Spain whose activity is not VAT exempt, such as regulated education or health activities.
- When must it be submitted?
It is a form that must be filed quarterly, but in Q4, Modelo 303 must be filed together with Modelo 390, which is the annual equivalent.
- When do I have to pay and when don't I?
This form may result in: positive (to pay), negative or zero/no activity.
- Positive: You have had more income with VAT applied than deductible expenses with VAT so you have to pay the difference to Hacienda.
- Zero or no activity: You don't have to pay anything! You have had no activity during the quarter so you won't have to pay for it. You have to file the tax return so that the tax authorities know that this has happened.
- Negative: You have had more deductible expenses with VAT than income with VAT and this negative result will be compensated in the following quarter.If in the 4th quarter you also have a negative result, you can choose between continue compesating for the next year of request a refund to Hacienda (this process can take up to 6 months).
- How is it calculated?
The formula is as follows: VAT on income - VAT on expenses
Whether you have to pay or offset VAT will depend on the VAT income you have had in the quarter minus the VAT expenses, being: VAT on income - VAT on expenses.