Model 179-Holiday rental tax
In the wake of the vacation rental boom, it requires fiscal control in order to prevent fraud. Therefore, if you act as an intermediary, individual or company, between tenants and owners you should know that next January you have a new obligation to take into account in the fiscal management of your activity: the presentation of model 179.
What is a vacation rental for the Tax authorities?
The answer can be found in the recently incorporated article 54 RD 1065/2007, which develops the General Tax Law, 1 January 2018. This article defines as the cession of a dwelling for tourist use "the temporary cession of use of the entire furnished and equipped dwelling in conditions of immediate use, whatever the channel through which it is marketed or promoted, and carried out with a lucrative or onerous purpose". It follows from this definition that renting a room would not form part of the concept of holiday rental.
Who is obliged to present form 179?
This new declaration takes shape in Order HFP/544/2018, of 24 May, which specifies who is obliged to present form 179, in form and within the deadline.
The second question that probably comes to mind is: Do I have to present form 179 if I rent my flat on the beach during the summer? The answer is NO. As we have already said, those companies or persons who intermediate between the owner of the property being offered and the tenant, that is to say, between the landlord and the tenant, are obliged to present this form 179 next January.
This new form is aimed at the protagonists of collaborative platforms such as Airbn or Wundu and leaves out of this new tax obligation to tourist accommodations that already have their own rules.
But beware, don't trust yourself, renting your holiday home does not oblige you to present form 179, but it does oblige you to declare the income received from renting it in your Income Tax Return, which has different criteria according to Autonomous Communities.
Deadline and form of presentation of form 179
Now that it is clear who is and who is not required to submit form 179, let us address the rest of the details about the model.
What information does form 179 contain?
In order to control the revenues of intermediation companies, form 179 requires exhaustive information:
- Identification of the owner or owners of the dwelling
- Identification of the property
- Number of days of enjoyment of the dwelling for tourist purposes.
- Amount received, as the case may be, by the assignor of the use of the dwelling.
- Number of contract by virtue of which the intermediate declarant in the cession of use of the dwelling.
- Start date of the assignment.
- Date of intermediation in the operation.
- Identification of the means of payment used (transfer, credit or debit card or other means of payment).