Frequently asked questions (forms 172 and 173) (HTML)

Those required to submit form 173, "Informative declaration on operations with virtual currencies", are those delimited in sections 1 and 3 of article 39 ter of the RGAT, that is:

• Individuals and entities resident in Spain and permanent establishments in Spanish territory of individuals or entities resident abroad, which provide exchange services between virtual currencies and fiat currency or between different virtual currencies, mediate in any way in the performance of said operations or provide services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer virtual currencies. Persons or entities whose activity is limited to providing advice on virtual currencies, to merely putting parties interested in carrying out transactions with virtual currencies in contact with each other, or to simply attending to collection and payment orders in fiduciary currency from persons or entities that provide exchange services between virtual currencies and fiduciary currency or between different virtual currencies or services to safeguard private cryptographic keys on behalf of third parties or their clients, will not be required to submit Form 173.

• Individuals and entities resident in Spain and permanent establishments in Spanish territory of individuals or entities resident abroad, who make initial offers of new virtual currencies.

However, when the initial offers of new virtual currencies are made through the intermediation of one of the obligated subjects referred to in the previous paragraph, the annual information declaration must be made by the latter, regardless of the residence of the person or entity making the initial offer of new virtual currencies.

An Initial Coin Offering (ICO) is a funding model for raising funds for the initial growth of a project, which consists of issuing new virtual currencies in exchange for other virtual currencies or fiat currency.

Those required to submit form 173, "Informative declaration on operations with virtual currencies" will be obliged to provide the information contained in Annex II of Order HFP/887/2023, of July 26, which approves form 172 "Informative declaration on balances in virtual currencies" and form 173 "Informative declaration on operations with virtual currencies", and establishes the conditions and procedure for its submission, in accordance with the provisions of article 39 ter of the RGAT.

Thus, the information to be provided to the tax authorities will include:

• The identifying data (name and surname or company name or full name, address and tax identification number) of the subjects who carry out the operations of acquisition, transmission, exchange and transfer of virtual currencies or the delivery of new virtual currencies.

• Regarding each transaction or delivery of new virtual currencies:

  1. Type of operation.

  2. Date of operation.

  3. The type and number of units of virtual currency acquired, transmitted, exchanged or transferred.

  4. The value in euros for which the transaction is carried out.

  5. Where applicable, the commissions and expenses associated with the operation and that will be received by the person obliged to provide the information.

  6. In the event that there is consideration and the person obliged to provide the information is the person who pays or receives it, is an intermediary in its receipt or delivery or has knowledge of it, information will also be provided as to whether it consists of fiduciary currency, another currency or virtual asset, goods or services or a combination of the above.

For more details, please consult the following link: Contents of the information declaration on operations with virtual currencies, model 173 .

By sending messages in XML format, in accordance with the technical specifications contained in Annex II of Order HFP/887/2023, of July 26, which approves model 172 "Informative declaration on balances in virtual currencies" and model 173 "Informative declaration on operations with virtual currencies", and establishes the conditions and procedure for its presentation.

No. The information must be provided individually for each operation, identifying them with a different DeclaredRecordID.

Thus, for example, if Juan Español Español has carried out two virtual currency acquisition transactions in the fiscal year to which the declaration refers, the declarant will provide the information relating to the first virtual currency acquisition transaction with a DeclaredRegistryID X and the information relating to the second virtual currency acquisition with a DeclaredRegistryID Y.

In the fields VirtualCurrencyName and VirtualCurrencyAcronym, the name and acronym of the virtual currency to which the declared transaction refers must be entered, respectively, as they appear on the reference cryptographic rating sites, such as CoinMarketCap.

For example:

• VirtualCurrencyDenomination: Bitcoin and Virtual Currency Acronyms: BTC.

• VirtualCurrencyDenomination: Ethereum and Virtual Currency Acronyms: ETH.

• VirtualCurrencyDenomination: Tether USDt and Virtual Currency Acronym: USDT.

• VirtualCurrencyDenomination: BNB and Virtual Currency Acronym: BNB.

• VirtualCurrencyDenomination: XRP and Virtual Currency Acronym: XRP.

• VirtualCurrencyDenomination: USDC and Virtual Currency Acronyms: USDC.

• VirtualCurrencyDenomination: Cardano and Virtual Currency Acronyms: ADA.

• VirtualCurrencyDenomination: Dogecoin and Virtual Currency Acronym: DOGE.

• VirtualCurrencyDenomination: Solana and AcronymsVirtualCurrency: SUN.

• VirtualCurrencyDenomination: TRON and Virtual Currency Acronyms: TRX.

• In TypeOperation the letter P will be entered.

• In OperationDate the date on which the exchange is made will be recorded.

• In VirtualCurrencyDenomination the denomination of the virtual currency delivered in the exchange will be recorded.

• In VirtualCurrencyAcronym the acronym of the virtual currency delivered in the exchange will be recorded.

• In NumCoins the number of units of the virtual currency delivered in the exchange will be recorded.

• In ValueOperation the value in euros for which the exchange is made will be recorded.

• In CommissionsExpenses the commissions and expenses associated with the exchange received by the declarant will be recorded.

• In Consideration an S will be entered if the person required to file the declaration pays, receives, mediates or has knowledge of the consideration. In the event that the person required to file the declaration does not know the possible consideration of the operation, an N will be entered.

• In TotalConsiderationAmount , if S is indicated in the Consideration field, the valuation in euros of the virtual currency received in the exchange will be recorded.

• In Type of consideration an N will be entered.

• In ConsiderationAmount the valuation in euros of the virtual currency received in the exchange will be recorded.

• In DenominationConsideration the denomination of the virtual currency received in the exchange will be recorded.

• In AcronymConsideration the acronym of the virtual currency received in the exchange will be recorded.

• In NumUnidadesContraprestación the number of units of the virtual currency received in the exchange will be recorded.

• In ConsiderationValue the value in euros of the virtual currency unit received in the exchange will be recorded.

• In OriginValueConsideration the trading platform or price monitoring website or, where applicable, the place where the ValueConsideration was obtained will be recorded.

Where the transaction does not involve consideration in fiduciary currency in its entirety, and therefore it is necessary to value the transaction in euros, the quote offered by the main trading platforms or price monitoring websites on the date and time at which the transaction was carried out will be taken or, failing that, a reasonable estimate of the market value in euros of the virtual currency on the date and time at which the transaction was carried out will be provided.

In this regard, the ValueConsideration field will indicate the quote or value used to carry out the valuation in euros of the currency unit or virtual asset, good or service that consists of the consideration, and the OriginValueConsideration field will indicate the trading platform or price monitoring website, or, where appropriate, the place where the ValueConsideration was obtained.

Yes. These operations will be declared as transfers in the “Type of Operation” field, with the letter R.

When an outgoing transfer operation is declared, the value in euros for which the transfer is made will be entered in subfield “ OperationValue” , with a value less than zero (negative sign).

When an incoming transfer operation is declared, the value in euros for which the transfer is made will be entered in subfield “ OperationValue” , with a value greater than zero.

The fields “NumCoins” and “ComisionesGastos” will be recorded with a value greater than zero, both in outgoing and incoming transfers. If there is consideration for the operation and it is known, the fields “TotalConsiderationAmount”, “ConsiderationAmount”, “NumberOfConsiderationUnits” and “ConsiderationValue” will be recorded with a value greater than zero, both in outgoing and incoming transfers.

The submission of Form 173, “Informative declaration on operations with virtual currencies” will be annual and the deadline for submission will be the month of January of the year following the year to which the declared information corresponds.

For the 2023 fiscal year, the declaration regarding the obligation to report on operations with virtual currencies (form 173) must be submitted in January 2024, only with respect to operations corresponding to the 2023 fiscal year carried out since April 25, 2023.