Every day there are more people sell products and / or services online, either recurrently or occasionally. However, not all of them know if earned money must be declared or not. In this article we will address everything you need to know if you sell online, to clear up any doubts that may arise.
Do I have to declare online sales?
In case you are a private seller who sells things sporadically, you should not worry, since it is assumed that these are sales of items from your personal heritage. On the other hand, if you are a individual who sells products on a regular basis, it is very important that you professionalize. You must register as a self-employed person and make the online sales tax.
On the other hand, professionals who do not have as an activity the sale of products over the internet and carry out some one-time only, do not need to change the epigraph of their activity, but they must submit a sales invoice, as if it were a professional activity.
Next, we share a summary table of the cases of individuals and professionals:
| Usual activity | Sporadic activity | |
| Particular | You must register as a self-employed person or create a company and pay the corresponding taxes. | You are not obliged to register as an individual entrepreneur or declare the profits to the Treasury |
| Professional (Company or Freelance) | The activity will be subject to the usual taxes (IRPF, VAT, IAE, IS), depending on your situation | Even if it is not your usual activity, you will be obliged to pay taxes as you normally do for your operations. If it is something very punctual, it is not absolutely necessary that you register with the corresponding IAE. |
How to declare money earned on the internet
To declare the money earned online, we must register with the Treasury and the RETA. Here are all the steps to follow:
Step 1: Register with the Treasury, declare registration with Social Security and RETA
The first thing to do is register with the Treasury, declare the date of registration in social security and in the STRAIGHT. The date of registration in the RETA must be the same as the one that appears in the social security or be within the previous 50 days).
To register as a self-employed person in social security, we must present the model TA.0521, the identity document and the social security affiliation number. The process that we have to carry out is very simple, but at the same time, it is convenient to be prepared to make the monthly payments for the freelance fee.
Once we finish these first two procedures, we must register with the RETA (Special Regime for Self-Employed Workers). In this case, it is recommended that both registrations be made at the same time, since this will help the self-employed person to choose the flat rate and at the same time receive other benefits, such as a reduction in the payment of contributions.
The following guide details, precisely, how to register as self-employed, both in Social Security and in Finance. You will find information about all previous decisions, steps to follow and how avoid the most frequent mistakes.
Step 2: Register with the IAE
The next step will be to give us high in the famous Economic Activities Tax, commonly known as IAE. This can be done both through the Tax Agency office and online.
We will have to present the model 037 in which we will have to indicate which category we want to register for. The most common headings for the web are; Heading 844 (Advertising) and 769,9 (Information service).
On the other hand, If our activity works with a foreign company that belongs to the EU, we must register in the ROI (Registry of Intracommunity Operators) presenting the model 036. If we want to make sales to countries that are within the EU, we must charge the IVA that the country has, but as long as it exceeds the amount of 35.000 euros. In case it does not exceed it, the Spanish VAT must be charged.
Step 3: Presentation of models
Once we are registered in social security as self-employed and in the Treasury through the IAE, we will have to submit these models mandatory quarterly and annually:
- Model 130: This model will reflect all the expenses and income that we have and is presented every 3 months. If the difference is positive, you will have to pay 20%. In the event that we have not made any sale, this document also has to be submitted with obligation.
- Model 303: This will reflect the collections and payments of VAT that we have invoiced. It is mandatory to keep these invoices saved for at least 4 years.
- Model 390: It occurs only once a year and during the first month. With this model, we will self-liquidate the operations that we present in model 303.
- Model 349: This model must be presented in case we have carried out operations. These operations can be purchases, acquisitions and income. In turn, this model must be submitted quarterly, as long as it does not exceed the amount of 35.000 euros. In that case, it will have to be submitted annually.
Online sales are the present and the future and, as you can see, there are many aspects to take into account. We hope this article has helped you understand when to report internet income and when not. In case you have any questions, You can always go to specialized tax consultancies on these issues, such as Stating, which accompanies you from the moment you want to register as a self-employed person, so that you are up to date with the Treasury.