Here we cover the basics of what you need to know to file your model 390 (or el modelo 390), the annual VAT summary: What is it, who has to file it and when. We’ll also look at an example of how to complete a filing as an autónomo working as a freelance translator.
What is the modelo 390?
The modelo 390 is an informational filing aimed at summarizing all transactions related to VAT collected, deducted and paid by your business during the year. It’s essentially the annual version of the modelo 303, which is filed each quarter.
Please see our previous article about how to fill out the modelo 303. Even though the 390 is only an informative filing and there is no payment involved, it’s required for all Spanish autónomos and small businesses to file its. It’s very important that the 390 matches up with your quarterly 303 filings or it could lead to a tax audit.
Who has to file a modelo 390?
Essentially, it’s anyone who has to file the quarterly 303 VAT filing form. That would be anyone with business activity that requires the collection of VAT. That’s regardless of the type of business or the result of the filing. There are some types of businesses that are exempt from filing.
You should check on the requirements for your particular situation before proceeding. In particular, a new law that came into effect in January 2017, means many large companies no longer need to file the 390 because Hacienda already has access to their “libros de registro del impuesto” (tax record books).
Where and when to file the modelo 390
The most common is to file it online, through the Sede Electronica of Agencia Tributaria using your Clave PIN or digital signature. Alternatively, it can also be done by mail. The time frame for submitting modelo 390 is between January 1st and 30th of the following financial year.
How to file your modelo 390 as an autónomo working as a freelance translator
As my business activity is translation, and I also work with many freelancers in this sector, I will take you step by step how I fill out the 390. Please keep in mind that depending on your type of business and sources of income, you’ll likely need to fill out these forms differently.
But this should give you an idea of the steps involved.
- Sign in to the Sede Electronica of the Agencia Tributaria using your Clave Pin or electronic signature.
- Go to: Impuestos y tasas> IVA
- Click on Modelo 390. IVA. Declaración Resumen Anual from the list
- Click on the “@” sign under “Trámites”
- Go to “Presentación ejercicio [YEAR]”
Click on the yellow “@” sign to use your Clave PIN to fill out the form - “Aceptar” the pop up (of course, if any of the situations it mentions apply to you, you wouldn’t need to do the next steps).
- On page 1, say NO next to the three questions at the bottom regarding bankruptcy (unless you filed for bankruptcy this year)
- On page 2, under B Clave, click the little pencil. Click the radio button next to where it says “Actividades Profesionales sujetas al I.A.E.” and *then* select actividad profesional number 774 (if your activities fall under translation and interpretation).
- On page 4: in [05], put the total amount you earned that whole year before taxes. {This is assuming you are in the translation and interpretation category, where the applicable VAT percentage is 21%). Here’s an example based on someone who earned 1000 euros per month (12,000 euros for the year) and who charged clients 21% VAT on top of that:
- On page 5: on [605], this is where you put the *expenses* on which you deducted IVA. In theory you should separate your expenses by which VAT percentage was applied. But if you don’t have that level of detail.. it seems to work to just put the total of all your expenses for the whole year in the 21% line, and then manually put in the actually amount of VAT you deducted during the whole year.
- On page 11, click [95] and fill out the total IVA you paid for each quarter (amount owed (from page 4), minus deductions (from page 5). It’s important that these amounts match the results of your quarterly filings, or else you’ll get an error.
The amounts should be input in March, June, September and December only, and correspond with the resulting IVA owed (and paid) at the end of each quarter. Make sure that these amounts match up with your 303 forms filed at the end of each quarter. Again, if they don’t, it could create a red flag and lead to an audit.
Again, please note that this is only a guide based on the typical autónomo we work with at VeraContent who exclusively works as a freelance translator and has no other sources of income they need to claim. If you had any other source of income during the year, you may need to fill out some of the other pages.
I hope this was helpful in understanding the modelo 390. Note I am not a tax professional and you should follow my advice at your own risk! Any mistakes on your tax form could lead to an audit and potentially significant fines. Please do your own research on tax requirements for your type of business. Good luck!
By Shaheen Samavati, co-founder of VeraContent & SpainGuru
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