In Spain, businesses and self-employed individuals must comply with a range of tax reporting obligations, among which Modelo 347 stands out as a key instrument for fiscal control. Far from being a mere administrative formality, this annual informative declaration allows the Spanish Tax Office (Agencia Tributaria) to detect inconsistencies, cross-check transactions between companies, and combat undeclared economic activity. For 2025, the form includes a notable update, making an understanding of its requirements more essential than ever.
What is Modelo 347?
It is an annual informative tax return for businesses and self-employed individuals conducting transactions with a single client or supplier exceeding 3,005.06 € (including VAT) during the fiscal year. Its primary purpose is to provide the tax authorities with comprehensive details of significant business relationships, allowing them to verify information reported by other taxpayers and detect discrepancies that may indicate tax irregularities.
Who must file and What’s new for 2025?
Obligation to file applies to:
- Businesses and self-employed professionals operating in Spain.
- Entities and associations engaged in economic activity.
- Public administrations conducting substantial transactions with suppliers or clients.
Exemptions include:
- Those using the SII (Immediate Supply of Information System).
- Businesses or professionals whose transactions do not exceed the threshold.
- Individuals under the simplified VAT regime, except for specific operations.
- Businesses and self-employed professionals operating in Spain with transactions that are detailed in the below list of “transactions excluded”(*) .
For 2025, a new section has been introduced to report subsidies and grants. Public administrations will use a specific code from the National Database of Subsidies (BDNS), which will be cross-checked against recipients’ declarations. This field is to be completed only where such a BDNS number exists and is available, otherwise it should be completed with zeros. This adds a new layer of verification, making accurate reporting even more critical.
It is important to note that the introduction of this field does not create a new reporting obligation for recipients of subsidies or grants beyond those transactions that are already required to be informed under the existing rules of Modelo 347. However, this change introduces a new reporting party, the Spanish Tax Office.
Transactions excluded (*)
Although the form states that all transactions exceeding 3,005.56 € must be reported, transactions that have already been declared in other informative tax returns, or that are reported by third parties, must not be included in Modelo 347.
In particular, the following transactions are excluded:
- Professional withholdings, both those received and those included on invoices issued as part of the taxpayer’s own activity. These are declared in Modelo 190.
- Rental withholdings applied to lease payments. These are declared in Modelo 180.
- EU transactions, which are already reported in Modelo 349.
Why filing is more than a form
Beyond legal compliance, Modelo 347 serves as a tool for businesses to cross-check records with suppliers and clients. Ensuring consistency prevents alerts triggered by discrepancies, which could lead to inspections or administrative penalties. It is also an effective year-end reconciliation exercise, allowing businesses to identify missing or pending transactions and maintain accurate fiscal records.
Submission, deadlines & risks of non-compliance
The form must be submitted electronically via the Tax Office’s website, by 28 February of the year following the fiscal period.
Failure to submit the form, or reporting inaccurate information, can result in substantial penalties. Errors frequently include omitting transactions, confusing taxable base with total invoiced amounts, misallocating operations to incorrect quarters, or failing to verify data imported.
Conclusion
Modelo 347 is a crucial instrument in Spain’s tax compliance framework. Businesses and self-employed professionals must maintain detailed and accurate records throughout the year. Consulting a tax professional can help avoid errors and ensure full compliance with Spanish tax regulations.
