Box 501. Only carry out non-taxable or exempt operations

Box 501 asks the following question: Do you only carry out non-taxable or exempt operations that do not require the filing of periodic self-assessments (art. 20 and 26 of Law VAT)?

As a general rule, taxpayers must determine the tax debt and its payment themselves, through the corresponding periodic self-assessments. These must be submitted even when there are no accrued contributions and no deductions are made for contributions incurred.

However, will not be required to submit self-assessments those taxpayers who exclusively carry out:

• Operations not subject to tax (article 7 Law 37/1992)

  Example: Free deliveries of samples of goods without appreciable commercial value, for the purposes of promoting business or professional activities. Merchandise samples are understood to be representative articles of a category of merchandise which, due to their presentation or quantity, can only be used for promotional purposes.

  Example: The provision of demonstration services free of charge for the promotion of business or professional activities.

• Exempt domestic operations (article 20 Law 37/1992)

  Example: The provision of services and the delivery of goods accessory to them that constitute the universal postal service, provided that they are carried out by the operator or operators who undertake to provide all or part of it. This exemption shall not apply to services whose terms of provision are negotiated individually.

  Example: Assistance to individuals by medical or health professionals, regardless of the person receiving said services.

• Intra-community acquisitions of goods exempt (article 26 Law 37/1992)

  Example: Intra-Community acquisitions of goods whose delivery in the territory of application of the tax would have been, in any case, not subject or exempt by virtue of the provisions of articles 7, 20, 22, 23 and 24 of the VAT Law .

Consequently, those taxable persons who are established in the territory of application of Value Added Tax or have a permanent establishment therein, and declare this by checking “YES” in box 500, and the circumstance indicated above occurs, that is, they exclusively carry out non-taxable operations (article 7 of Law 37/1992), exempt domestic operations (article 20 of Law 37/1992) and exempt intra-Community acquisitions of goods (article 26 of Law 37/1992), will check “YES” in box 501. Otherwise, they will mark “NO”.

who are not established in the territory of application of Value Added Tax nor have a permanent establishment therein, and declare this by marking “NO” in box 500, and who exclusively carry out the exempt operations contemplated in 23, 24 and 26.Three of Law 37/1992 will not have to comply with the formal obligations referred to in article 164 of the same Law, among which is the obligation to submit the corresponding self-assessments and pay the resulting tax amount. To this end, they will mark "YES" in box 501. Otherwise, they will mark "NO".