If you are a self-employed You will be very interested in this information. Because it will even save you from having to visit a manager to explain the mechanics of this important document. Because in effect, the self-employed must carry out a series of administrative procedures to be able to develop their professional activity. And one of them is model 037, which you will have named many times but you do not really know what it is for and how you should formalize it correctly so that you do not have problems with the tax authorities of our country.
Well, first of all you should know that model 037 is the document with which you must register with the Treasury precisely to become a self-employed or self-employed worker. Because when you fill it in, you will be registering in the census of employers. What does this mean in practice? Well, something as simple as that from this moment on you will already be at the disposal of exercise your professional activity. In addition, they will avoid that in the future you have some other complication with your accounts before the tax institutions.
However, it is very common among users to be confused between what is the 037 and the 036 model. Even though it is practically the same document, its main difference is that the 037 model is the simplified. But be very careful, because not all people can choose to have it formalized. If not, on the contrary, if your intentions are to establish yourself as a small and medium-sized businessman, you will not be able to use it. That is, you will have to fill in the other one, form 038. This is a small qualification that you should consider from the beginning.
Conditions for model 037
In any case, to make this administrative procedure effective, you will have no other solution than to comply with a series of requirements that we are going to explain below. And without which you will not be able to choose to formalize this model of high census in the Treasury.
- Be resident in Spain, whatever your nationality.
- Having the tax identification number (NIF).
- Not have the status of Big company under any concept.
- Do not act through representative or some figure who handles professional affairs.
- It will be absolutely necessary for the tax domicile and that of administrative management coincide.
- Not be included in any of the special VAT regimes.
- And finally, do not perform certain acquisitions Intra-community acquisitions of goods are not subject to tax.
Who should formalize it?
In any case, you will be obliged to fill in form 037, or failing that, 036, if you are a natural person, businessman or professional, that you are going to develop any kind of economic activity within the national territory. As long as you meet the requirements set out above. To do this, you will have one month as a deadline for completion. On the other hand, this will be the same period of time that you will have to cancel the registration census. Not surprisingly, the violation of these deadlines entails penalties that you must consider to assume them.
On the first page of this document, you must enter the data related to the causes for which you want to cancel, cancel or even other kinds of modifications in the business census. While in the second the content is more technical. That is, the obligation to make the installment payment and how you will pay the tax Income Tax on Individuals (IRPF). Where you must make it very clear if it will be in normal or simplified format. It is not very complicated to formalize it, but you may require the advice of a professional to help you channel this administrative procedure.
Regimes applicable in 037
The next step that you will have to formalize from now on is the one regarding the activities in which your work tasks will be linked. In this sense, do not forget that the applicable regimes shown in model 037 are various and of diverse nature and that they are the following that we expose you below:
- General.
- Special equivalence surcharge scheme.
- Special regime for agriculture, livestock and fishing.
- Simplified general scheme.
- Special regime of the cash criterion.
Now you will only have to formalize the third and last page, which is perhaps the most complex for many of the self-employed. This is because it is dedicated to the withholdings and payments on account. As well as the specification of the activity that you are going to develop from now on. That is, you will have no choice but to write down the heading of the economic activities tax where your professional initiative is located. On the other hand, you must notify the Treasury of the withholdings and income from your professional accounts, with their corresponding quarterly statements.
Regarding personal income tax and VAT
Of course, in this tax section, where it will be indicated if the company is included in the direct estimation method (normal or simplified). On the other hand, box 600 will be used for individual entrepreneurs or box 601 for members of an entity under the income allocation regime. With regard to another rate, VAT, the declarant must indicate whether he exclusively carries out non-subject or exempt operations that do not require the submission of periodic self-assessment.
Another aspect to have in this section is the one referring to the regime applicable to each of the economic activities carried out by the VAT taxable person. So that there are no errors in its identification, it will need to be carried out in accordance with the rules and classification of the Tax on Economic Activities. It will be one of the most complicated sections to complete and that you will need correct advice to fulfill your obligations to register in the business census. Especially if it is the first time you are putting it into practice.
Business activities
It will be another module of special importance and that you must complete in all cases. Not in vain, it is the one that will identify who professional sectors You will be linked from the moment you have decided to become a self-employed or self-employed worker. In this sense, they incorporate several sections that are preceded by a number that will help you identify it as quickly as possible. In any case, it will not be an excessively complex process and of course less than that indicated in the previous sections.
In this sense, the Ministry of Finance has ordered companies according to the various activities that can be engaged in. Classified, therefore, in the following sections that we expose you below and that will help you correctly fill in the 037 form that we are dealing with in this article.
- Business activities: are independent, industrial, commercial, service and mining livestock
- Professional activities: These are the so-called liberal professions, which are endorsed by studies, many of them collegiate and which are always provision of services and not sale of products. They are made individually
- Artistic activities: related to cinema, theater, circus, dance, music, sport and bullfighting shows. They are done individually.
Identify the business line
You will have to capture within these activities what is really yours. So that in this way, you are in perfect conditions to register as a self-employed worker. If you have any doubts in this regard, it is really advisable that you contact the bodies of the ministry to clarify where your company or professional activity should be located. Because it can happen, as it happens with some freelancers, that you sign up for a activity you do not belong to. This can have serious consequences for the entire process of registration in the business census.
On the other hand, the 036 model, although very similar to the 037, has some differences that you should know from now on. Not surprisingly, it is the declaration model of high in the census of entrepreneurs, professionals and retainers in ordinary or general regime. In addition to working for the self-employed, it is also used to form companies. This is a piece of information that should be known for its correct formalization. In any case, it is a standard model and the most complete to register with the Treasury.
Notifications of data changes
In some situations it will be more advisable that you use one or the other model, depending on the activity that you are going to develop at each moment. Because if what you want to do is online sales, for example, the document that you must fill out is 036 since it is the one that includes these options in the development of your profession. On the other hand, you will have no choice but to notify the Treasury of any variation or change. As for example, those related to identifying data, tax domicile or others of similar characteristics.
On the other hand, another aspect to take into account is that the same model will also serve you to declare the withdrawal in the Census of Employers, Professionals and Retainers. Finally, in case of having any kind of doubts between model 036 and 037, the ministerial bodies will explain the main differences between them. You may need it at some other time.