Validation of operations with third parties (Model 347)
Form 347 is an information declaration that Spanish companies and self-employed workers must submit to inform the Tax Agency of transactions with third parties that exceed €3,005.06 per year, including VAT.
This tool enables the tax authorities to cross-check data between customers and suppliers in order to verify the accuracy of VAT and other tax declarations, thereby detecting any irregularities.
Although it is not a tax in itself, Form 347 is compulsory for most VAT taxable persons operating within this threshold, with a few exceptions, such as public administrations or individuals under the module scheme, except in specific cases.
The purpose of Form 347 is to ensure tax transparency and control the economic flows between the various parties involved in commercial transactions.
Filing it is essential to avoid penalties, as it enables the tax authorities to monitor economic activities accurately.
Who is obliged to file Form 347?
Form 347 must be filed by all entrepreneurs, freelancers and professionals who have carried out commercial transactions with a client or supplier whose annual amount exceeds 3,005.06 euros.
This includes both purchases and sales of goods and services within this limit.
Cash payments in excess of €6,000 and certain specific transactions, such as leases subject to withholding or intra-Community acquisitions, must also be declared.
The obligation applies to large companies as well as to small and medium-sized enterprises (SMEs) and the self-employed that meet these criteria.
The importance of this declaration lies in the fact that the tax authorities use the data collected in Form 347 to cross-check it with the information provided by other taxpayers.
Therefore, any difference between the figures declared by both parties may lead to a request for clarification.
What information is included in Form 347?
Form 347 must detail information related to transactions with third parties, such as the name or company name and VAT number of the customer or supplier, as well as the total amount of the transactions broken down by quarter.
In addition, specific details of transactions, such as cash payments over EUR 6,000 and intra-Community or international transactions, should be included.
All this information must be consistent with the company’s accounting records and previously submitted periodic VAT returns.
Accuracy of data is essential, as any errors may lead to a request from the tax authorities.
When do I file Form 347?
Form 347 must be filed in February of each year, referring to transactions carried out during the previous tax year.
For example, transactions carried out in 2024 must be declared in February 2025.
Filing is done exclusively online, through the Tax Agency’s electronic headquarters, so it is necessary to have a digital certificate or to be registered in the Cl@ve PIN system.
Complying with the established deadline is essential to avoid financial penalties or inspections by the Inland Revenue.
Proper preparation of the return during the year, with detailed and up-to-date accounting records, will facilitate the filing process.
A thorough review of the information before submission is recommended to ensure that there are no errors in the data provided.
Can the Inland Revenue request a summons related to Form 347?
The tax authorities may require additional information related to Form 347 if they detect discrepancies between the figures declared by your company and those submitted by your customers or suppliers.
As this is an informative declaration that allows cross-checking data between different taxpayers, any discrepancies can generate a notification.
For example, if your company claims to have sold for a certain amount and the customer reports a different figure, the tax authorities may request additional documentation to clarify the situation.
If you receive a request, it is essential to respond within the established deadline and provide all the necessary documentation, including invoices, accounting books or bank statements, to justify the declared transactions.
Consequences of not filing Form 347 or filing it incorrectly
Failure to file Form 347 or filing it with errors can have significant consequences for companies and the self-employed.
Financial penalties for incorrect or undeclared data can reach up to a maximum of €20,000 at .
In serious cases, the tax authorities may initiate more exhaustive inspections including other tax obligations, such as VAT, personal income tax or corporate income tax.
In addition, discrepancies in the figures declared can affect the possibility of justifying tax deductions, generating additional financial losses.
For this reason, it is crucial to ensure that the information declared in Form 347 is accurate and matches the company’s accounting and tax records.
Asesoría Orihuela Costa: your ally in tax management
At Asesoría Orihuela Costa we are specialists in tax advice for companies and the self-employed.
We take care of preparing and filing the Form 347, thoroughly reviewing your accounting and tax data to ensure your tax history.
If the tax authorities request additional information, we act as your representatives, managing the process efficiently to avoid penalties.
