The tax calendar for freelancers and SMEs in Spain is filled with forms and deadlines. One of the most well-known, though often confusing, is Form 347 (Modelo 347). It's a fundamental annual informational declaration for the Spanish Tax Agency's (AEAT) oversight, but its future is tied to new invoicing regulations.
What Exactly is Form 347?
Form 347, or the Annual Declaration of Transactions with Third Parties, is an informational document that freelancers and companies file with the Tax Agency each year. Its purpose is not to pay a tax, but to inform the AEAT about purchase and sale transactions of goods and services with the same customer or supplier when the total amount of these transactions has exceeded €3,005.06 (VAT included) during the previous calendar year.
The Tax Agency uses this information to cross-reference data and verify that what a supplier declares matches what their customer declares, making it a key tool in combating tax fraud.
Who is Required to File It?
All professionals, freelancers, and SMEs who conduct economic activities and have had transactions with any single customer or supplier exceeding €3,005.06 in a calendar year are required to file Form 347.
It's important to remember that this threshold is calculated separately for customers and suppliers. For example, if you invoiced a client for €4,000 and purchased €2,000 from a supplier, you are only obligated to declare the transactions with the client.
Excluded Transactions
Not all transactions exceeding the threshold must be declared. The most significant exclusions are:
* Transactions already reported on other informational forms, such as those with IRPF withholding (professional invoices, rent).
* Intra-community acquisitions or deliveries of goods and services (declared on Form 349).
* Imports and exports of goods.
* Transactions carried out by taxpayers under the Immediate Supply of Information (SII) system for VAT.
Filing Deadline and the Future with VeriFactu
Traditionally, Form 347 is filed during the month of February of the year following the transactions. For instance, transactions from 2026 will be declared in February 2027.
However, the tax landscape is changing dramatically. The implementation of VeriFactu invoicing systems will become mandatory for all companies from January 1, 2027, and for freelancers and micro-SMEs from July 1, 2027. These systems will report invoice data to the AEAT almost instantly.
This automation is expected to make Form 347 obsolete for most taxpayers, as the Tax Agency will have the information without needing a specific annual declaration. While the regulation has not officially eliminated it yet, it is a logical step that will greatly simplify administrative management. To better understand this new system, you can consult our complete What is VeriFactu? Guide for Freelancers in Spain.