Mandatory filing of Form 347: status as a businessperson or professional is key

The Dirección General de Tributos (DGT) has issued a relevant ruling regarding the obligation to file the annual declaration of transactions with third parties, known as Form 347. The central issue lies in determining whether the obligation to report these transactions is conditioned by the nature of the taxpayer's economic activity.

What the DGT has ruled

The query focused on whether filing Form 347 is mandatory for all taxpayers performing transactions with third parties or if there is a prerequisite. After analyzing current regulations, the DGT establishes that the obligation to file this annual declaration is subject to the status of being a businessperson or professional for Value Added Tax (IVA) purposes.

The criteria are based on the regulatory framework composed of:

• Law 37/1992 on Value Added Tax (LIVA).
• Law 58/2003 General Tax Law (LGT).
• The General Regulations on the Activities of Businesspeople and Retentions regulated in Income Tax and Value Added Tax (RGAT).

Consequently, performing transactions with third parties is not enough; it is necessary to hold the status of a businessperson or professional for the duty to report via this form to arise.

What this means for you

This ruling has a direct impact on sole traders conducting professional activities. If you carry out economic activities that grant you the status of a businessperson or professional according to the LIVA, you must verify whether the volume of your transactions with third parties reaches the thresholds established for filing Form 347.

For those individuals who do not hold said status, the obligation to report transactions carried out with other economic agents is not triggered, regardless of the amount involved.

What you should do

It is necessary to evaluate your tax situation to confirm whether your professional activity obliges you to comply with this annual reporting duty. It is recommended to verify your status as a businessperson or professional before the Tax Administration and check if the transactions carried out with third parties meet the amount requirements for filing the form. Each situation must be analyzed to ensure compliance with the corresponding reporting obligations.