When do you have the status of a Large Company, and what implications does it have?

Large Company: requirements to be one, conditions and responsibilities. Below, we give you all the details.

When do you have the status of a Large Company?

When a company, businessman or professional (from now on the taxpayer) exceeds €6,010,121.04 in turnover in one year, as of the following year, it becomes a Large Company, producing significant tax effects that must be taken into account when carrying out procedures before the Tax Agency.

If exceeding the amount above, a census declaration (Form 036) must be submitted to the Tax Agency, informing that the taxpayer becomes a Large Company before January 31. The consequences of becoming a large company are several, highlighting the following:

• VAT self-assessments become monthly.
• Form 111 will be presented monthly, along with the rest of the models for withholdings and payments on account.
• The record books referred to in article 62.1 of the VAT Regulation must be kept through the electronic billing records (SII) supply. Registering in said registry implies increased administrative burdens for the employer since he must periodically upload all invoices issued and received to the Tax Agency website.
• The modality provided in article 40.3 of the Corporate Tax Law will calculate the instalment payments. This means making closures on March 31, September 30 and November 30 that allow calculating corporate taxes on those dates to make the instalment payment.
• Other taxes may also be affected by the fact of having acquired the status of a large company. For example, the Tax on non-reusable plastic containers should be presented monthly instead of quarterly.

When does the status of a Large Company stop?

On the contrary, the opposite case can also occur – that is, the taxpayer has a turnover of less than €6,010,121.04 when in the previous year it was more significant than this amount. Losing the status of a Large Company must be communicated to the Tax Agency by presenting the corresponding census declaration (Form 036) before January 31. It also has some consequences, among which are:

• VAT self-assessments become quarterly.
• Form 111 will be presented quarterly, along with the rest of the models for withholdings and payments on account.
• Loss of the obligation to present the registration books through the electronic provision of the billing records (SII), except if it is registered in the Monthly VAT Refund Registry or if the Special Regime for Groups of Entities in VAT covers it.
• About the instalment payments of Corporate Tax, if the net amount of the turnover during the 12 months before the date on which the tax period begins on account of which the corresponding instalment payments must be made has not exceeded the amount of 6 million euros, these will be made applying the calculation modality provided for in article 40.2 40 of the Corporate Tax Law, and quarterly (however, the calculation modality provided for in article 40.3 can be chosen).

In short, becoming a Large Company means acquiring a whole series of responsibilities that must be planned to allow the company to adapt to them.