Model 303 — VAT
Model 303 is the quarterly VAT self-assessment. It applies to companies and freelancers with tax domicile in Peninsula and Balearic Islands.
If your business is in the Canary Islands, consult Model 420 (IGIC).
What Frihet Calculates
Frihet generates the complete calculation of Model 303 based on your issued invoices and expenses recorded in the quarter:
Accrued VAT (what you have collected)
It is calculated from your issued invoices (excludes drafts):
| Boxes | Concept | Calculation |
|---|---|---|
| 01-02 | General regime 21% | Base + tax amount at 21% |
| 03-04 | General regime 10% | Base + tax amount at 10% |
| 05-06 | General regime 4% | Base + tax amount at 4% |
| 13-18 | Equivalence surcharge | Base + tax amount by rate (5.2% / 1.4% / 0.5%) |
| 27 | Total Accrued VAT | Sum of all tax amounts |
Additionally, Frihet automatically classifies special operations:
- Exempt operations (Art. 20 VAT Law) — invoices with 0% VAT to national clients
- Exports — sales to clients outside the EU
- Intra-community — sales to companies in other EU countries
- ISP (Reverse Charge Mechanism) — sales from Peninsula to Canary Islands/Ceuta-Melilla
Deductible VAT (what you have paid)
It is calculated from your expenses recorded in the quarter:
| Boxes | Concept | Calculation |
|---|---|---|
| 28-29 | Current goods and services | Base + VAT amount of your expenses |
| 30-31 | Capital goods | Expenses marked as capital goods (>3,000 EUR or manually marked) |
| 45 | Total VAT to deduct | Sum of deductible VAT amounts |
Result
| Box | Concept | Calculation |
|---|---|---|
| 46 | Difference | Accrued - Deductible |
| 64 | To offset from previous periods | Negative amount from previous quarters |
| 69 | Result of the settlement | Difference - Offset |
| 71 | To pay | Positive result (what you owe to the Tax Agency) |
If the result is negative, it accumulates as an offset for the next quarter.
How to use it in Frihet
- Go to the Tax Calendar
- Select the quarter and year
- Frihet shows the breakdown with all the boxes
- If you have an amount to offset from previous quarters, enter it in the corresponding field
- Download the PDF as a reference for your declaration
Frihet automatically saves the adjustments (offsets, previous payments) for each quarter.
Equivalence Surcharge
If your invoices include an equivalence surcharge, Frihet calculates it separately:
| VAT | Surcharge |
|---|---|
| 21% | 5.2% |
| 10% | 1.4% |
| 4% | 0.5% |
The surcharge is added to the total accrued VAT (boxes 13-18).
Capital Goods
Expenses are classified as capital goods when:
- They are explicitly marked as "Capital Goods" in the expense form
- Or exceed 3,000 EUR (heuristic criterion)
Capital goods are deducted in separate boxes (30-31) and may have different regularization rules.
Special Operations
Frihet automatically classifies your invoices according to the client's location:
| Client Location | Classification | VAT |
|---|---|---|
| Peninsula/Balearic Islands | Normal | Applicable rate (21/10/4%) |
| EU (company) | Intra-community | 0% (reverse charge) |
| Outside EU | Export | 0% |
| Canary Islands (from Peninsula) | ISP | 0% (not subject) |
| Peninsula (exempt) | Exempt Art. 20 | 0% |
These operations are reflected informatively in Model 303 but do not generate VAT amounts.
Practical Example
A freelancer in Madrid with the following quarter:
Invoices Issued:
- 3 consulting invoices at 21%: 5,000 EUR base
- 1 training invoice at 10%: 800 EUR base
Expenses:
- Office rent: 500 EUR + 105 EUR VAT
- Software: 200 EUR + 42 EUR VAT
- Computer (capital good): 1,500 EUR + 315 EUR VAT
Calculation:
Accrued VAT:
21%: 5,000 x 21% = 1,050 EUR
10%: 800 x 10% = 80 EUR
Total accrued: 1,130 EUR
Deductible VAT:
Goods/services: 105 + 42 = 147 EUR
Capital goods: 315 EUR
Total deductible: 462 EUR
Result: 1,130 - 462 = 668 EUR (to pay)
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