If you’re uncertain about whether rentals should be included in the 347 form, this article aims to provide you with a detailed explanation of how the form reflects rental transactions. Let’s explore the topic in depth.

Understanding Form 347:

First and foremost, let’s clarify what Form 347 actually is. Form 347 is an annual tax return that must be filed by business people and professionals who have engaged in transactions with third parties amounting to more than 3,005.06 euros during the previous calendar year. This declaration itemizes the operations carried out with each supplier or client, aiming to prevent tax fraud and the underground economy.

Should Rentals be Included in Form 347?

One of the most contentious aspects of Form 347 is whether rentals should be included in this declaration. The answer depends on the situation.

If the rent is subject to withholding tax, meaning the tenant is obligated to withhold and pay a percentage of the rent to the tax authorities, then the rent should not be included in Form 347. In this scenario, the tenant is already fulfilling their tax obligations by withholding and remitting the appropriate amount to the tax authorities.

On the other hand, if the rent is not subject to withholding, it must be included in Form 347 if the annual amount exceeds 3,005.06 euros. In this case, the landlord must report the total amount received for the rent, along with the name and NIF (tax identification number) of the tenant, in their annual Form 347 return.

Do Tenants Need to Declare Rent on Form 347?

This is another common question that often arises regarding this declaration. The answer is simple: as a tenant, you are not required to declare rent on Form 347 because no economic activity is conducted on the property.

Who is Obligated to Report Rent on Form 347?

It’s important to note that the obligation to report rent on Form 347 only applies to the rental of urban real estate, such as commercial premises, industrial buildings, offices, and so on. For example, it does not apply to rentals of vehicles or machinery.

In summary, rentals must be included in Form 347 if they meet the criteria set by the regulations and are not exempt from VAT or subject to personal income tax withholding. Taxpayers should be aware of this reporting requirement and file the return on time to avoid potential penalties from the Tax Agency.

If you have any doubts, we highly recommend consulting a specialized professional. At GyV Asesores, we possess extensive experience in handling such cases. Feel free to contact us for expert advice throughout the process.

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