Introduction

This manual briefly and systematically collects those issues that are relevant in the exercise of an economic activity. These economic activities can be carried out by natural persons , legal persons or by entities without legal personality (among others recumbent inheritances and communities of property).

You can expand the information contemplated in this help guide on our website https://sede.agenciatributaria.gob.es and in our telephone services. For more details, consult the corresponding regulations.

Starting an economic, business or professional activity gives rise to a set of state tax obligations. Some must be fulfilled before the start of the activity, others must be fulfilled during its development and others when the exercise of the activity ceases.

In general:

• Before starting an economic activity:

  • Natural persons, legal entities and other entities must submit census declaration, forms 036 or 037 .

  • Legal entities not exempt from paying the IAE will present form 840 (or the one approved by local entities with delegated census management) after 2 years from that the activity began, within a period of 1 month.

• During the development of economic activity:

  • Individuals and certain entities without legal personality file and pay Personal Income Tax (IRPF), installment payments and annual declaration.

  • Legal entities resident in Spanish territory, file and pay corporate income tax (IS), installment payments and annual declaration.

  • The corresponding Value Added Tax (VAT) declarations must also be submitted.

  • Where applicable, the appropriate informative returns must be submitted (for example, form 347 -operations with third parties-, form 190 - annual withholding declaration and income on account-, etc.).

• At the end of the activity:

  • When the activity has ceased, the census declaration of withdrawal of the activity, model 036/037, must be submitted.

  • Taxpayers not exempt from IAE must present form 840 (or the one approved by the entities premises with delegated census management) to declare the withdrawal or cessation of the activity they had been carrying out.

The VAT record books can be compatible with the IRPF ones by adding the necessary data. Carrying them together does not mean having to meet additional requirements than those required if they are carried separately. The Tax Agency puts at your disposal a standard format of record books to keep them together.

Link to the registration book models for VAT and Personal Income Tax

In addition, depending on the tax regime, there are the following specific record books: Special registry of used goods, art objects, antiques and collectibles and Registry of operations included in the special regimes applicable to telecommunications, radio or television services and those provided electronically.

civil companies that have a commercial purpose are taxed by Corporate Income Tax (IS) for tax periods beginning on or after January 1, 2016.

The entities under the regime of attribution of income that carry out economic activities must keep unique mandatory books corresponding to the activity carried out, without prejudice to the attribution of returns made to its partners, heirs, community members or participants. Those who keep accounting in accordance with the Commercial Code will not be required to keep the Personal Income Tax record books, but they will be required to keep the record books for the purposes of VAT .

The following sections contain the most general aspects of the different tax obligations. For more details, consult the corresponding regulations.