Big company

Large company status (Volume of operations in the previous year exceeding 6,010,121.04 euros)

Those taxpayers whose volume of operations, calculated in accordance with the provisions of article 121 of the VAT Law , exceeded 6,010,121.04 euros during the immediately preceding calendar year, are considered to be large companies (box 541), even when they carry out their activity outside the territory of application of this tax. These taxpayers will form the Large Business Registry , within the Census of Business Owners, Professionals and Withholders.

volume of operations shall be understood as the total amount, excluding the Value Added Tax itself and, where applicable, the equivalence surcharge and the flat-rate compensation, of the deliveries of goods and services provided by the taxpayer during the previous calendar year, including those exempt from the Tax.

In the event of the transfer of all or part of a business or professional asset, the volume of operations to be computed by the acquiring taxpayer will be the result of adding to the volume carried out, where applicable, by the latter during the previous calendar year, the volume of operations carried out during the same period by the transferor in relation to the part of his assets transferred.

Transactions will be deemed to have been carried out when the accrual of Value Added Tax occurs or, where applicable, has occurred.

The following shall not be taken into consideration when determining the volume of operations:

1. Occasional deliveries of real estate.
2. Deliveries of goods classified as investment goods with respect to the transferor, in accordance with the provisions of article 108 of the VAT Law.
3. The financial transactions referred to in article 20, section one, number 18 of the VAT Law, including those that do not enjoy exemption, as well as the exempt transactions relating to investment gold included in article 140 bis of the VAT Law, when both are not habitual in the business or professional activity of the taxpayer.

By checking box 541 “YES” the Tax Authority is informed of the change in the settlement period for Value Added Tax and for the purposes of the declarations of withholdings and payments on account of Personal Income Tax, Non-Resident Income Tax and Corporate Tax, as applicable, due to the volume of its operations.

This declaration must be submitted within one month, counting from the day following the date on which the events that determine its submission occurred, and in any case, before the expiry of the deadline for the submission of the first periodic declaration affected by the variation brought to the attention of the Tax Administration or which should have been submitted had said variation not occurred.

Entities that no longer have the status of large companies will communicate this by marking “NO” in box 541.

Box 545 will indicate the date from which the status of large company is acquired or lost.