At Xolo, since we’re experts in everything related to self-employment, the first thing that comes to mind when we hear the word “model”—unfortunately—is the models from the Tax Agency. Not the ones from Calvin Klein. And today, of all things, we woke up thinking about model 111 for self-employed workers.
But hey, this actually has a bright side, especially for you. Because if you want to know what form 111 is, what it’s for, who is required to submit it, the deadlines, and any other information related to this document, you’ve come to the right place.
We might not be the luckiest people in the world, and runway models aren’t part of our daily life, but as advisors, guides, and friends of the self-employed, we’re priceless. In life, as they say, you can’t have it all 🙆.
What is form 111?
Let’s start with the basics, the fundamental question: what is form 111 from the Spanish Tax Agency?
As you might have guessed, it’s not a model walking right after number 110 in a Victoria’s Secret fashion show. Instead, it’s related to a process from the Spanish tax authorities.
Specifically, model 111 is the form used by self-employed workers and small to medium-sized businesses (SMEs) to report and pay, every quarter, the withholdings applied to employees, professionals, and business contractors for personal income tax (IRPF).
For example, imagine you are a self-employed marketing and advertising professional providing services to SMEs. You handle web design, social media, and everything except for blog content writing, which you outsource to another freelancer. That freelancer, of course, invoices you for their work.
Does the invoice from this content writer include IRPF? Yes, as the law requires. And as the employer, you must withhold 15% (or the applicable percentage) of the payment to this freelancer and submit it, along with their details, quarterly via form 111 to the Tax Agency.
What’s the difference between form 111 and form 190?
Now, some of you, the sharp ones, might be thinking that the definition of form 111—as the form that reports and submits withholdings for personal income tax (IRPF)—sounds a lot like form 190.
And you wouldn’t be entirely wrong. There is, however, a key difference: form 111 is submitted quarterly, whereas form 190 is an annual summary of all the operations reported in the four 111 forms over a fiscal year.
Keep in mind that the information on form 190 must exactly match what was submitted in the four 111 forms. If it doesn’t, get ready to face the full force of the Spanish Tax Agency—like a real “sharknado” when they’re angry.
Who has to submit form 111?
From what we’ve seen, you might think that anyone who pays invoices with IRPF withholdings must submit form 111, but that definition is a bit too simplistic.
In reality, there are five situations that require filing form 111:
- Self-employed workers or business owners who have issued payroll or final settlement payments to employees, since these are considered employment income that includes IRPF withholdings.
- Those who have been invoiced by another self-employed worker for professional activities; agricultural, livestock, or forestry activities; or business activities under the objective estimation scheme.
- Those who have been invoiced for intellectual or industrial property income (for example, a publishing house receiving an invoice from a writer for royalties), for the transfer of image rights, or for the leasing of movable assets.
- Those who have received prizes in competitions or games.
- Those who have capital gains from exploiting public forest.
Deadlines for submitting model 111 for self-employed
Regarding the deadlines for submitting form 111 to the Tax Agency, self-employed workers have four quarters per year, with the same dates repeating year after year (so no excuses about a deadline catching you by surprise 😜).
These submission deadlines are:
- April 1 to 15, inclusive, for operations in the first quarter of the year.
- July 1 to 15, inclusive, for operations in the second quarter.
- October 1 to 15, inclusive, for operations in the third quarter.
- January 1 to 20, inclusive, for operations in the fourth quarter.
Are there any exceptions to these dates? Yes. If the last day of a deadline falls on a public holiday, the submission is extended by one day.
When does form 111 need to be submitted monthly?
It’s worth mentioning that there is an exception to the rule of submitting form 111 quarterly. Certain legal entities are required to submit it monthly.
When is form 111 submitted monthly? When it comes to companies or public administrations with an annual budget exceeding six million euros.
If you don’t meet that threshold, don’t worry—just keep doing your thing: submit form 111 every three months, and struggle and cry for not making it to the end of the month. And if you do meet the threshold, well, congratulations—you’ve clearly been doing something right.
Penalties for late submission of form 111 for self-employed
And finally, as it couldn’t be otherwise, let’s cover the key aspect when it comes to deadlines for submitting any Tax Agency form. The question you always need to ask, the reason we talk about this: what happens if we miss the submission deadline?
If the self-employed worker voluntarily corrects the mistake before receiving a notice from the Tax Agency, the surcharge is:
- 5% of the result if corrected within three months;
- 10% if corrected between three and six months later;
- 15% if corrected between six and twelve months later;
- 20% if corrected more than twelve months late.
And if the Tax Agency itself sends a notice for failing to submit form 111, get ready—the penalty can range between 50% and 150% of the amount that should have been paid.
How to submit model 111?
As a self-employed worker, there are two ways to submit form 111:
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Online, for which you will need one of the two methods to access the Tax Agency’s website: either with an electronic signature or an electronic certificate.
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In person, by printing the form at a Tax Agency office and, if payment is due, making the payment at a cooperating bank.
Small and medium-sized businesses, on the other hand, can only submit the form online.
How to fill out model 111?
Fortunately, the process for filling out form 111 is fairly intuitive:
- Identification and “DEVENGO” section: First, fill in the taxpayer identification fields and the “DEVENGO” section, where you indicate the fiscal year and the quarter.
- “LIQUIDACIÓN” section – employment and economic activity income: Here, you must report data on employment income and economic activities that are subject to withholding. This includes amounts for payroll, final settlements, payments to freelance professionals, etc., along with the details of the recipients.
- “LIQUIDACIÓN” section – other income: You must also report all other types of income considered in form 111, such as income from image rights, intellectual and industrial property, prizes or contest winnings, etc.
- “CASILLA 30” (Box 30) – final result: Finally, specify the total in Box 30. This number is the sum of all withholdings and payments reported in the previous sections.
In general, the final result is positive (amount to be paid). Keep in mind that if you normally submit this form based on invoices received from other self-employed workers, you only need to submit it if you have received invoices without withholding during the quarter; otherwise, there’s no need to file it.
Submitting a complementary model 111 as a self-employed
Finally, it’s worth noting that submitting form 111 incorrectly to the Tax Agency is not the end of the world, nor does it automatically trigger a penalty, nor does it mean the end of your career as a self-employed worker. After all, the Tax Agency isn’t completely Machiavellian—and thankfully, there’s a way to correct our mistakes: the corrective (complementaria) form 111.
With this corrective form 111, you can modify errors or omissions made in the original submission. The process is simple: it’s done in the “COMPLEMENTARIA” section of form 111, and you include the data that needs to be corrected from the previous submission, which must also be identified.
The only catch? You can only use the corrective form if the modification benefits the Tax Agency. Because, well, it’s one thing for them not to be Machiavellian, but it’s another to ask for the impossible.
Free yourself from worries with Xolo
Yes, the corrective form is great, that’s clear. But do you know an even better way to forget about any mistakes in your dealings with the Tax Agency, whether it’s form 111 or any other?
Exactly: register with Xolo. Because it’s not just that we’re as friendly as we are efficient, we also make sure you stay far away from any tax headaches with the Tax Agency by offering:
✔️ Our own invoicing program
✔️ FREE registration as self-employed with Social Security and the Tax Agency
✔️ A team of managers who will submit your tax returns correctly
After all, how could you not trust someone like us, who every time we hear the word “form” think of form 111 and not the Cibeles Runway?
About Xolo
Xolo is much more than a digital accounting service. We help freelancers with the paperwork so they can focus on growing their business. We offer solutions for invoicing, accounting, and taxation to support the freelance revolution and the future of work.
