Any self-employed person, company or professional who wants to start a business, must previously carry out a series of procedures that allow him to exercise the business activity within the law.
The first thing is to register the company in the Treasury, through the presentation of form 036 or 037,depending on the business activity that is going to be carried out.
Form 036 is a document that includes the census data of a new company,such as the form of taxation, economic activity, data on its taxation, information related to partners or administrators, etc. On the other hand, form 037 refers to a simplified model of 036,and serves to present to the Tax Agency the registration in the census of entrepreneurs, professionals and retainers, the possible modifications that have been carried out.
So far so clear, but in which cases should form 036 or 037 be presented? We are going to tell you the main differences between them, and when to present each one.
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First of all, what is the census declaration?
Through the census declaration, the Tax Agency is informed of the data relating to a company that begins its activity (name, NIF, tax address and tax obligations). A declaration that can be made through the presentation of forms 036 or 037.
Form 036 is a report that serves to make the declaration of registration in the census of entrepreneurs, professionals and retainers in ordinary or general regime. In addition, it can also be used to request the assignment of the provisional or definitive tax identification number,so it does not have an exclusive use to communicate a registration.
It is the most used by self-employed workers and companies,and stands out for being the standard model for registering with the Tax Agency.
When assigning a tax identification number to a company, its inclusion in the Census of Taxpayers will be determined automatically.
It will be in the following cases when form 036 will have to be presented:
- Companies or self-employed professionals who are going to start a business activity in Spain.
- Companies or professionals that receive services from entrepreneurs or professionals who are not established in the territory of application of VAT, excluding Ceuta, Melilla and the Canary Islands.
- Pay rents with Personal Income Tax.
- Deliver or receive goods subject to VAT.
- Companies or professionals that offer services outside the territory of application of VAT.
- Workers who do not reside in Spain permanently, or pay income subject to personal income tax.
- Partners, heirs or participants of entities in the regime of attribution of income that have tax obligations.
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Form 037 is a simplified report of the census declaration,so we could say that it is a summary of the information presented in form 036, since it offers fewer options to choose from, and a greater number of limitations.
In order to present form 037, the following conditions must be met:
- Have their own tax identification number (NIF).
- Do not act through a representative.
- Fiscal address coincides with that of administrative management.
- Don’t be big companies.
- They are not included in the special value added tax (VAT) regimes.
- They are not registered in the register of intra-Community operators or monthly VAT refund.
- Do not make any of the intra-Community acquisitions of goods not subject to VAT.
- Do not make distance sales.
- Do not act as taxable persons of Special Taxes or Insurance Premiums Tax.
- Do not satisfy returns on real estate capital.
Main differences between model 036 and 037
If we talk about the main differences between model 036 and 037, thefirst thing to note is that while model 036 includes all the varieties and activities that a self-employed worker or company may require, the form 037 is a summary of the information presented in 036, so it is not useful for all cases.
This means that, if an activity is limited to offering services within Spain,without being subject to any regime or special tax, only form 037 may be presented.
If, on the other hand, international operations are carried out, online sales, or it is intended to constitute a large company, the 036 model will have to be presented.
In any case, both models serve to notify modifications to the Tax Agency that affect any identifying data, suchas the tax address, and also to notify the withdrawal in the Census of Entrepreneurs, Professionals and Retainers.
If you are going to register as a self-employed worker or are going to start a commercial activity, you must present form 036 or 037, depending on each case. If you have any questions about it, you can consult our professional tax advisors, who will offer you all the information you need to know.