Firstly, it is important to remember that Law 13/2023 of 24 May introduced the concept of the self-assessment correction which allows taxpayers to rectify an error that may have been made when filing their self-assessment; thus, the self-assessment correction replaces, in taxes so established, the current dual system of supplementary self-assessment and correction request. The taxes affected by this new concept are: Corporate Income Tax, Personal Income Tax, Value Added Tax, Excise Duties, and the Tax on Fluorinated Greenhouse Gases; the effective entry into force of the modification referred will take place as the corresponding forms are approved.
Order HAC/819/2024 of 30 July 2024 has been published in the Official State Gazette BOE of 5 August 2024, which aims to introduce the necessary changes to the VAT Form 303 for the implementation of the self-assessment correction.
In this way, by submitting a self-assessment correction, the taxpayer will be able to rectify, complete or modify the self-assessment previously filed, regardless of its result and without having to wait for an administrative decision in the case of a correction request.
This change, driven by the need to modernise and simplify the self-assessment rectification procedure, is part of a wider context of tax reforms aimed at improving the efficiency and transparency of the tax system.
The aforementioned Order will be applied for the first time to VAT self-assessments, Form 303, corresponding to the following settlement periods:
- For taxpayers with a monthly settlement period in the self-assessment of September 2024.
- For taxpayers with a quarterly settlement period in the self-assessment for the third quarter 2024.
This is a relevant measure because it establishes that corrections for periods prior to these dates will not be able to benefit from the new system, but will have to continue using the previous procedures. This ensures an orderly transition towards the new system, allowing taxpayers and the Tax Authorities to adapt progressively to the new regulations.
However, it is important to note that this new system is not applicable in all cases, there are two key exceptions that taxpayers should be aware of.
- When the reason for the correction is based on a possible breach of a higher-ranking regulation, such as a constitutional law, European Union law or an International Treaty. In these cases, taxpayers may choose to file a self-assessment correction or continue to use the traditional procedure for requesting a self-assessment correction.
- The second exception affects the corrections of amounts unduly passed on to other taxable persons, referred to in Article 129 of the General Regulations on Tax Management (RD 1065/2007). In these situations, the traditional procedure for requesting a self-assessment correction must continue to be used, since the new self-assessment correction system does not cover these circumstances.
In short, the new features introduced in VAT Form 303 are, on the one hand, section 5 to indicate whether the self-assessment is a correction and the reason.
On the other hand, box 108, which makes it possible to register corrections for which there is no specific box on the form. This box may only be used in cases where the self-assessment correction is due to a discrepancy with the administrative criteria that cannot be adjusted using the pre-existing boxes. The adjustment made in this box shall be reflected in the calculation of the final result of the self-assessment (box 69).
In addition, box 111 is created to allow taxpayers to differentiate, in the case of refund requests, between those arising from the application of the tax regulation and those that may correspond to a request for undue income, taking into account the different regime of the two refund types, making this distinction crucial to ensure proper and accurate treatment of refunds.
In conclusion, the implementation of the new self-assessment correction system represents a significant step towards the simplification and modernization of the Spanish Tax System, especially regarding VAT. Although the new system offers a more streamlined and straightforward process for correcting errors in self-assessments, it is essential that taxpayers be well-informed about the exceptions and the new procedures introduced. This will enable them to comply with their tax obligations more effectively, reducing the administrative burden and avoiding possible penalties for errors in their tax returns. The update of Form 303 and the introduction of the new boxes are key tools in this process of transition towards a more effective tax system adapted to current needs.
