Accountancy and tax representation of companies in Spain

The closure of the accountancy books of a company in Spain

The closure of the accountancy books of a company in Spain

By WeLex, your efficient accountant in Marbella.

After the start of a new year, it is normal to wipe the sheets clean, but in accounting, this is not possible. Although the accounting year ends – as a general rule, on December 31 – in Spain it is not until July, with the filing of the company tax, when we can finally erase the finished year.

The closure of the accountancy books in Spain

Therefore, the accountant of your company in Spain should work hard at the end of each finantial year in order to start the procedure to close the accountancy books. In general, it is appropriate to point out the existence of three stages of great complexity and precision that constitute the phases of accounting closing and fiscal closure. These are:

1º Accounting closing.

2º Presentation of accountancy books and annual accounts in the Mercantile Register.

3º Presentation of Spanish company tax form.

To better understand its performance today, we are going to focus on accounting closing, and, in subsequent blogs, we will be looking more closely at the presentation of accountancy books and annual accounts in the Mercantile Register and the presentation of company tax.

Practical case on VAT of a construction company in Spain

By WeLex, your English speaking accountant in Spain!

Do the invoices of a constructor in Spain accrue VAT? And what if the client is a German company that has an intra-community VAT number?

WeLex, your multilingual law firm and team of accountants in Marbella, has the pleasure of explaining to you a practical case on one of the most complex taxes in the Spanish legal system. WeLex is your efficient VAT specialist in Spain.

The invoices issued by the Spanish entrepreneur to the German client are subject to 21% Spanish VAT. Now, the question to be clarified is: who is the taxpayer, or responsible person, for that VAT before the Spanish Tax Agency?

WeLex, your Spanish VAT specialists in Marbella!

Practical case on VAT of a construction company in Spain

Legal modification in the monetary contributions at the time of setting up a limited liability company

Legal modification in the monetary contributions at the time of setting up a limited liability company

Entrepreneurs arrive to our offices in Marbella, Málaga heart of the Costa del Sol with the wish to set up a limited liability company in order to start a new activity in Spain.

Welex, your multilingual lawyer and accountant under one roof!

In some cases, we advise such clients that a limited liability company in Spain is constituted with a minimum share capital of three thousand euros, and that this contribution can be made through both monetary and nonmonetary contributions.

The monetary contributions must be deposited in a bank branch that certifies that in that entity, in the name of the company in constitution, has been deposited the amount of three thousand euros (or another amount agreed upon by the partners) as a monetary contribution for the subscription of the capital share of the future company. Finally, the notary authorising the Constitution Deed of the company incorporates that bank certification to the deed. Sometimes, the banking entities block the account in which the capital share has been deposited until the registration of the company at the corresponding Mercantile Registry is completed, with the consequent impairment for entrepreneurs that they cannot make use of this capital share until the company has been definitely registered.

Welex, your multilingual lawyer and accountant under one roof!

In some cases, we advise such clients that a limited liability company in Spain is constituted with a minimum share capital of three thousand euros, and that this contribution can be made through both monetary and nonmonetary contributions.

The monetary contributions must be deposited in a bank branch that certifies that in that entity, in the name of the company in constitution, has been deposited the amount of three thousand euros (or another amount agreed upon by the partners) as a monetary contribution for the subscription of the capital share of the future company. Finally, the notary authorising the Constitution Deed of the company incorporates that bank certification to the deed. Sometimes, the banking entities block the account in which the capital share has been deposited until the registration of the company at the corresponding Mercantile Registry is completed, with the consequent impairment for entrepreneurs that they cannot make use of this capital share until the company has been definitely registered.

Welex, your multilingual lawyer and accountant under one roof!

The sale of shares of a Spanish SL company

The sale of shares of a Spanish SL company

If you are a shareholder of a Spanish SL and wish to transfer your shares, such a transfer is subject to certain rules outlined in the Capital Companies Law of Spain (Ley de Sociedades de Capital).

By Welex, efficient company lawyers in Marbella.

Firstly, the transfer of your shares must be recorded in a public document. It must be carried out using a public deed signed before a notary in Spain.

Secondly, you must comply with the provisions of the bylaws of the company, unless the bylaws provide otherwise. The voluntary transfer of shares by inter vivos (between partners), those carried out in favour of the spouse, ascendant, or descendant of the partner, or those in favour of companies belonging to the same group as the transferor, is free.

Billing requirements to justify deductible expenses in Spain

Our accountancy firm in Marbella has the pleasure to lay out for you the requirements of an invoice in Spain.

Self-employed workers and companies can deduct certain amounts from their taxes to the Treasury, regarding the payment of VAT or the Income Tax and Corporate Tax. However, for these deductions to be accepted, the correct invoices must be submitted.

We must distinguish between “ordinary or complete invoices in Spain” in comparison to a “simplified invoice.” These last ones are what we commonly call tickets. 

Even if the name “invoice” appears, they are not valid invoices to justify the deduction of the expense since these simplified invoices or tickets only indicate the provider’s data, not the customer’s. If, as a client, we want to deduct that expense, we have to request an official Spanish invoice that meets all of the following formal requirements:

  • An invoice in Spain has to be numbered.
  • A Spanish invoice must include the date of issuance. If we are dealing with a type of service that was performed on a different date, we must also specify the date of that service provision as well.
  • The complete fiscal data of both the client and the supplier must appear including the name or company name, the address and the NIF or CIF.
  • An invoice in Spain must include a description of the products or services, including the net amount of each one.
  • Also, the invoice must show the type of VAT that was applied (21%, 10% or 4%) and the tax rate, which is the tax that is added to the taxable base. This would include VAT and IRPF withholdings.

Billing requirements to justify deductible expenses in Spain

Irregular Company in Spain

By Welex—Your leading law firm in Marbella! The irregular company in Spain is defined as a Spanish company whose members have opted not to register the company in the Mercantile Registry. This distinction, however, is reflected in capitalist, non-personalist companies. There is some doctrinal unanimity, which says that the contract is valid. Article 117 of…

Spanish Company under Formation

Welex—Your multilingual law firm in Marbella! The Spanish company in formation exists from the moment when the members decide to form the company until the company is registered in the Mercantile Register. The Spanish Capital Companies Law of 02/07/2010 regulates the company in formation by Articles 36 to 38, which establish the following: Regarding the…

Spanish Company under Formation

Welex—Your multilingual law firm in Marbella! The Spanish company in formation exists from the moment when the members decide to form the company until the company is registered in the Mercantile Register. The Spanish Capital Companies Law of 02/07/2010 regulates the company in formation by Articles 36 to 38, which establish the following: Regarding the…

Billing requirements to justify deductible expenses in Spain

Our accountancy firm in Marbella has the pleasure to lay out for you the requirements of an invoice in Spain.

Self-employed workers and companies can deduct certain amounts from their taxes to the Treasury, regarding the payment of VAT or the Income Tax and Corporate Tax. However, for these deductions to be accepted, the correct invoices must be submitted.

We must distinguish between “ordinary or complete invoices in Spain” in comparison to a “simplified invoice.” These last ones are what we commonly call tickets.

Even if the name “invoice” appears, they are not valid invoices to justify the deduction of the expense since these simplified invoices or tickets only indicate the provider’s data, not the customer’s. If, as a client, we want to deduct that expense, we have to request an official Spanish invoice that meets all of the following formal requirements:

  • An invoice in Spain has to be numbered.
  • A Spanish invoice must include the date of issuance. If we are dealing with a type of service that was performed on a different date, we must also specify the date of that service provision as well.
  • The complete fiscal data of both the client and the supplier must appear including the name or company name, the address and the NIF or CIF.
  • An invoice in Spain must include a description of the products or services, including the net amount of each one.
  • Also, the invoice must show the type of VAT that was applied (21%, 10% or 4%) and the tax rate, which is the tax that is added to the taxable base. This would include VAT and IRPF withholdings.

Spanish Accountancy Books and Annual Accounts in Spain

Welex Accountantns Marbella are pleased to provide additional information on the well-known accountancy books and annual accounts in Spain: Every company in Spain has a series of obligations of registration before the Spanish mercantile register: Accountancy books in Spain Spanish annual accounts. The accounting books are presented before said registry within 4 months following the…

Registering a magazine in Spain

It is important to mention that there are two Registries: REGISTERING THE MAGAZINE AT A TERRITORIAL REGISTRY OF INTELLECTUAL PROPERTY A) General information The Intellectual Property Registry is an entity provided for in intellectual property law, which is unique throughout the country. The Registry is conceived as a system for the protection of property…

Limited Liability Company in Spain

The Limited Liability Company (LLC) is one of the most common company forms in Spain; its capital is divided into shares, which are integrated by the contributions of all partners who are not personally responsible for social debts. The main characteristics are: – The partners are not personally responsible for social debts, but only up…

Este sitio web utiliza cookies para que usted tenga la mejor experiencia de usuario. Si continúa navegando está dando su consentimiento para la aceptación de las mencionadas cookies y la aceptación de nuestra política de cookies, pinche el enlace para mayor información.

ACEPTAR
Aviso de cookies