The Tax Agency has drawn a clear line: any company with an annual turnover exceeding €6,010,121.04 is considered a large company. This figure is not calculated on the basis of profits or net income, but on total turnover. And the change in status is immediate: if you exceed this threshold this year, you will be a large company next year.
This volume is calculated by adding up all deliveries of goods and services provided, including those exempt from VAT. Tax payments and occasional transactions such as the sale of real estate or assets are not included. Financial transactions and certain agricultural or livestock activities that are taxed under special regimes are also not counted.
Crossing this threshold changes a lot. It is not just a matter of invoicing more. From then on, the tax authorities expect a different way of operating. Failure to adapt can lead to penalties, management errors or even liquidity problems.
What it means to be a large company in tax terms
Once your company is considered a large company for tax purposes, everything changes: deadlines, how to file returns, your relationship with the administration… It’s a leap in level. These are the main consequences:
- Monthly returns. It is no longer enough to file them quarterly. VAT (form 303) and withholdings (forms 111 and 115) must be submitted every month.
- Mandatory SII. Immediate information provision requires keeping VAT records electronically, sending invoice data to the tax authorities almost in real time.
- Electronic notifications. All official communications are made electronically. The company must have a digital certificate and pay attention to notifications.
- Installment payments other than corporation tax. The system provided for in Article 40.3 of the Corporation Tax Act applies, which requires payments to be calculated on the basis of actual results for the financial year.
In addition, many self-assessments must be submitted exclusively electronically, including forms as diverse as 200, 232, 349 and 720, among others. The list is long and leaves no room for error.
Managing all this requires more than just technical resources. It requires solid tax organisation, cash flow forecasting and experienced teams. It is not uncommon for growing companies to find themselves overwhelmed after changing status.
How to prepare to become a large company
The best way to deal with the status of Large Enterprise for tax purposes is to anticipate it. If your company is approaching the threshold, it is advisable to carry out an internal tax review. What systems do you have in place to control invoicing? How is the accounting done? Are you prepared to file monthly returns without errors?
An essential step is to digitise your processes. The use of accounting software adapted to the SII is no longer optional. You must also ensure that you have a valid electronic certificate and that your finance team is aware of the new deadlines.
Another key point is cash flow. Filing and paying monthly can affect liquidity. Adjusting collection and payment schedules or planning corporate tax instalments well is vital to avoid financial stress.
At Confianz, we help many companies that have taken this leap. We know that the problem is not only technical: it is organisational and strategic. That is why we not only comply, but also help you gain efficiency, avoid penalties and maintain control even when the tax pressure intensifies.
Becoming a large company for tax purposes is much more than a change of category. It is a complete transformation in the way you interact with the tax authorities. Knowing what this entails, anticipating it and having a good tax strategy is what makes the difference between a company that adapts and one that struggles.
At Confianz, we not only know the regulations, we also understand the reality of growing businesses. If you are close to the large company threshold, we can help you make the leap with confidence. Let’s talk.