Introduction

This manual briefly and systematically covers those issues that are relevant to 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, unclaimed inheritances and community property).

You can find more information on what is included in this help guide on our website https://sede.agenciatributaria.gob.es and on our telephone services. For further details, please consult the relevant regulations.

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

In general:

• Before starting an economic activity:

  • Individuals, legal entities and other entities must submit a census declaration, forms 036 or 037 .

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

• During the development of economic activity:

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

  • Legal entities resident in Spanish territory, present and pay taxes on Corporate Tax (IS), fractional payments and annual declaration.

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

  • If applicable, the appropriate information returns must be submitted (for example, form 347 -transactions with third parties-, form 190 - annual declaration of withholdings and payments on account-, etc.).

• At the end of the activity:

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

  • Taxpayers not exempt from IAE , must submit form 840 (or the one approved by local entities with delegated census management) to declare the cancellation or cessation of the activity they were carrying out.

The VAT record books can be compatible with the IRPF ones by adding the necessary data. Carrying them together does not entail having to comply with additional requirements to those required if they are carried separately. The Tax Agency provides you with a standardised format for keeping records 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 register of used goods, works of art, antiques and collector's items and Register of operations included in the special regimes applicable to telecommunications, radio or television broadcasting services and those provided electronically.

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

Entities under income attribution regime that carry out economic activities must keep set mandatory books corresponding to the activity carried out, without prejudice to the attribution of income to their partners heirs, commoners 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 further details, consult the corresponding regulations.