It is possible that you already know, if you have a company registered in the Monthly VAT Refund Scheme (REDEME), that you are obliged to present Form 340 every month to avoid penalties from the Treasury.
This post informs you of the changes in the penalties for this form so that you can be prepared and avoid unwanted fines for your company.
As it is possible that you are not aware of this, I will tell you what Form 340 is used for.
What is Form 340?
Form 340 is a monthly informative declaration of the operations included in the VAT and ICI registration books. If you opt for the monthly statement, it must be presented every month without exception.
Remember that your company can submit this form annually or monthly, but it must continue doing so, or it will be severely penalized by the Tax Agency.
What is included in Form 340?
Many people do not know what they should include in the form, so I will tell you the main data to include in Form 340:
- Record book of invoices issued
- Record book of invoices received
- Investment goods operations
- Some community operations
You may not know that The Treasury has changed the penalties provided for not submitting the form. The changes are substantial and high, so it is essential to be current.
What has changed in Form 340?
Due to the different criteria in place, when a mistake was made in Form 340, a fixed penalty of €200 was usually applied (which is generally used if there has been no financial loss to the Treasury).
From now on, the Treasury has decided to unify the criteria it previously applied to provide it with a previously non-existent coherence.
The changes imply that:
- Each piece of information omitted will lead to a fine of €20
- The minimum is set at €300
- The maximum at €20,000
You will notice that the risk of not filing is very high, especially compared to the previous situation.
What happens if Form 340 is submitted late?
In addition to its monthly obligation and the increase in fines for filing with errors, there is something you should know before submitting the form.
If you have yet to be required by the Treasury and the deadline for submission has passed, you can submit it and save yourself a significant part of the fine.
In that case, the fine will be reduced by half. Considering the changes made by the Treasury, it is essential to consider whether you have acted incorrectly.
Now you know how the Treasury penalties for Form 340 have changed. Please do not fail to submit it; you will receive a cold request from the Treasury.
If you need to know more, you can consult our Tax Advice service.
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