If you are self-employed in Spain, you probably already know that filing your tax return is an unavoidable procedure. But are you sure you are doing it correctly? Did you know that many self-employed people make mistakes that can cost them penalties and problems with the tax authorities? Don’t worry, because in this article we will answer all your questions and give you the best tips to make your tax return without complications.
At the end of the article, you will also find a list of common mistakes that many self-employed people make when filing their tax return, don’t miss them! It can be the difference between a smooth tax return and an unnecessary headache.
What is a self-employed tax return?
A self-employed person’s tax return is the tax procedure by which self-employed people declare their income, expenses and profits earned during the tax year. It is a compulsory process that allows the tax authorities to determine whether the self-employed person has to pay additional taxes or whether, on the contrary, they are entitled to a refund.
In Spain, the tax return is generally filed between April and June of the year following the tax year. For many self-employed people, this process can be confusing and overwhelming, especially if they do not have a specialised accountant. Therefore, knowing each step and the necessary documents is key to avoiding mistakes.
Who is obliged to file an income tax return as a self-employed person?
If you are self-employed and have earned income during the tax year, you are obliged to file a tax return. This includes both those who have regular income and those who have worked sporadically or even without significant income.
What if you have no income? Even if you have not earned any income during the year, it is important to know that, in some cases, you still have to file a tax return. This is essential to keep up to date with the tax authorities and avoid possible future problems.
How to make a self-employed tax return step by step?
Filing your self-employed tax return may seem like a challenge, but by following these steps you will be able to do it without mistakes:
- Gather all the necessary documentation: This includes invoices for income and expenses, proof of Social Security payments and any documents that accredit tax deductions.
- Access the Tax Agency platform: Access is by digital certificate, Cl@ve PIN or reference number.
- Complete the draft tax return: Check the personal and tax details that appear automatically and correct any errors or incomplete information.
- Declare your income and expenses: Enter the data corresponding to your economic activities, breaking down income and deductible expenses.
- Check applicable deductions: Make sure you take advantage of all allowable tax deductions, such as expenses related to your vehicle or business premises.
- File and send the return: Once reviewed and corrected, file the return electronically and keep the proof of filing.
Quarterly income tax return for the self-employed
In addition to the annual tax return, the self-employed are obliged to make quarterly VAT and personal income tax returns, known as instalments. This allows the tax authorities to keep track of income and expenditure on an ongoing basis and prevent the final payment from being too high.
The most common forms for the quarterly tax return are:
- Form 130: For the payment of personal income tax in instalments.
- Form 303: For the settlement of VAT.
The deadlines for filing these returns are the 20th of April, July, October and January of the following tax year. Failure to comply with these obligations may result in penalties and late payment interest.
Common mistakes when filing a self-employed person’s tax return
It is easy to make mistakes when filing your tax return, especially if it is your first time or if you have no experience in tax management. Some of the most common mistakes are:
- Not declaring all income: Remember that any income earned must be declared, even if it comes from sporadic activities.
- Incorrect deductions: Not all expenses are deductible. Make sure you include only those directly related to your activity.
- Mistakes in tax identification: A small mistake in your NIF or personal details can invalidate your tax return.
- Forgetting to file a quarterly tax return: Self-employed persons must file quarterly VAT and personal income tax returns. Failure to do so can lead to fines.
This concludes our article on the tax return of a self-employed person. We invite you to continue browsing our Blog to keep up to date with the latest fiscal and tax news.
Also, if you want to avoid unnecessary problems and penalties regarding self-employed tax returns, let us tell you that our team of specialised lawyers and accountants in Mallorca is ready to help you with this and any other tax procedure. Contact us today and make sure you comply with all your tax obligations without any worries!