Understanding the 347 Tax Declaration

Businesses in Spain must submit the 347 tax declaration to the Spanish tax authority for transactions exceeding 3,005,06 euros. The 347 tax declaration includes information about all accounts payable and accounts receivable transactions. The tax declaration also includes information about insurance and leasing transactions, as well as leasing information for buildings that are owned or maintained by the company. The system considers the amounts included in the report both quarterly and annually.

If a large company is subdivided into subcompanies within the system, the parent company should report the consolidated information for all subcompanies.

The first step in processing the Model 347 declaration is to run the Model 347 - Generate Acquisition Records (R74S100) and Model 347 - Generate Sales Records (R74S110) programs to generate the Model 347 workfiles.

The Model 347 workfiles consist of these tables:

F74S70 - Model 347 - Record Type 0 - Spain.
F74S71 - Model 347 - Record Type 1 - Spain.
F74S72 - Model 347 - Record Type 2 - Spain.
F74S73 - Model 347 - Record Type 3 - Spain.
F74S75 - Model 347 - Link Between Rec. Type 0 and Rec. Type 1 - Spain.
F74S76 - Model 347 - Record Type 0 Tag File - Spain.
F74S77 - Model 347 - Record Type 1 Tag File - Spain.
F74S78 - Additional Information for 347 & 349 Models - Tag file - Spain.
F74S79 - Model 347 - Record Type 2 Tag File - Spain.

This table explains the record types:

Record Type	Description
Record Type 0	Contains information about the number of records being submitted. Record type 0 is necessary only if you are using a single file to present tax information about two or more companies with different tax identification numbers. When you process the report based on the specified country, the report informs in this record type the company information according to the country address book.
Record Type 1	Contains information about company address, as well as the amount and number of records that are associated with the company for the country specified in the processing options for the report.
Record Type 2	Contains a summary of the amounts of selected transactions from AR and AP records that are distinguished by the tax identification number of the customer or supplier, and by the type of operation (acquisitions or sales). Insurance operations and leasing operations are also identified. The system displays the summary of amounts for those transactions that apply to the country and tax rate/area specified in the processing options. This record also contains the following new fields: Community operator tax identification number Deferred VAT amount that is applicable to suppliers and not customers You must declare the deferred VAT vouchers that are paid in the declaration year. For example, a voucher entered in December 2014 and paid in January 2015 appears only while submitting the 2015 declaration. You must use the value 2015 in the Declaration Year processing option to set the date range to 2014, and manually select the voucher. You must not declare the deferred VAT vouchers entered before January 01, 2014. Deferred VAT Regime Transactions Indicator This field helps to identify the total deferred VAT transactions of suppliers. This field also helps to identify the total deferred VAT transactions of customers that purchase from the suppliers. Reverse Charge Transaction Indicator This field helps to identify the transactions that correspond to Reverse Charge in the declaration year. Deposit Regime Transaction Indicator This field helps to identify goods that are under the deposit regime, and that are not customs deposits. Note: Verify that you have set up and assigned an appropriate tax rate area to all your transactions dated October 2014 and onward. The report lists all the transactions with this new tax area in a separated line.
Record Type 3	Contains the total amount of leasing operations and the address of the leased commercial site. Record Type 3 is necessary only if the company leases a commercial site to a customer. The system displays the total amount for records that apply to the country and tax rate/area specified in the processing options.

The system uses the information in the Model 347 workfiles to produce the Model 347 - Dec. Companies Report and the 347 - Operations Report. You use the Model 347 - Print Records Type 1 - Spain program (R74S71) and the Model 347 - Print Records Types 2 & 3 - Spain program (R74S72) to print these reports that you use to review the data in the workfiles. The system reads the data in the workfiles when you generate the data for the file that you submit to the Spanish tax authority.