Form 347 Guide - Annual Declaration of Transactions with Third Parties

February is here, and for most businesses and self-employed professionals, it means one thing: filing Form 347. This informative return is crucial for the Tax Agency to cross-check data between clients and suppliers (2025).

Who must file and what is reported?

All individuals and legal entities that have conducted transactions with the same third party (client or supplier) exceeding a total of €3,005.06 during the previous calendar year (VAT included) are required to file.

The Breakdown: Quarterly Keys

Unlike other forms, Form 347 requires information to be broken down by quarter, using different criteria depending on the invoice type:

• Issued Invoices: Must be included in the quarter when the transaction takes place (accrual).
• Received Invoices: Must be included in the quarter in which they are received and recorded in the ledger.

Exceptions: ANNUAL reporting

Not all transactions are broken down quarterly. There are specific cases where information is provided as an annual total:

1. Homeowners' Associations (NIF "H"): Due to their special status, they report the annual total without a quarterly breakdown.
2. Cash Basis Accounting: Transactions under the Special VAT Cash Basis Scheme are reported annually.
3. Cash Payments: Amounts exceeding €$6,000$ received in cash are reported on an annual basis.

Blog: Form 347 and Real Estate: What to Report?

When filling out Form 347, real estate transactions require special attention. Not all rentals should appear in this declaration; the main criterion is the existence of withholding tax.

Rental of Business Premises

Only business premises rentals that have NOT been subject to withholding tax should be included in Form 347.

• Why? If the rent is subject to withholding, this information has already been provided to the Tax Agency through Form 115 (quarterly) and Form 180 (annual summary).
• Note: Information for these rentals must be provided separately from other transactions, detailing the Cadastral Reference and the property's location.

Residential Rentals and Other Cases

The treatment changes drastically depending on the use of the property:

• Housing for individuals: The rental of properties intended exclusively as private residences for individuals is not included in Form 347.
• Parking Spaces and Storage Rooms: Be careful here! If they are rented separately from a dwelling, they must be included (provided they exceed €$3,005.06$ per year). If they are part of a joint residential rental contract, they are excluded along with the dwelling.

Deadline: Until March 2, 2026.

By C.Fabri