Do I need to declare my Vivid account on my taxes?
April is getting closer and, with it, longer days, colours returning to nature, and the beginning of the deadline to file your income tax return. If you’re a resident of Spain or France and have a Vivid account, there might be a few extra hoops for you to jump through.
If you are a resident of Spain and have a Vivid account, you should keep in mind that Vivid Money is an outsourcing partner of Solarisbank AG, a German bank, and that you may have to include it in your IRPF as a bank account opened in a foreign entity. If your balance on December 31 exceeds €50,000, declaration is mandatory. Otherwise, it is not necessary, so you can stop reading here.
Important note: although each of your Pockets has its own assigned IBAN, they depend on the main IBAN and are therefore considered as a single account.
In France, starting in 2019, taxpayers whose tax residence is in France or Monaco must report in their annual tax return their bank accounts opened, used or closed abroad. This obligation concerns all current or savings accounts that you may hold.
Since Vivid is a partner of Solaris Bank, which holds a banking license in Germany, your account is held in that country. This means that you must declare your Vivid account to the tax authorities.
How to report to the tax office in Spain
If you are in Spain and one of those who must add your account to the tax declaration, you're already working in amounts where it makes sense to hire someone to help with your taxes.
First of all, between January and March, you have to report the account to the AEAT (Agencia Estatal de Administración Tributaria) through an informative declaration called Modelo 720. On their website, they explain to you step by step how to create it. Here’s the data for you to fill in:
In successive years, if the balance at December 31 or the average balance of the last quarter of the account has increased more than €20,000 with respect to your last declaration or if you close the account, you will have to fill in this form again.
Subsequently, between April and June, you should add your Vivid account when you review the draft of your income tax return in the Renta WEB platform. At that time, you don’t need to prepare any specific document. If the Tax Agency asks you for documentation at a later date, you can download your bank statements in the Vivid app.
How do I declare my account in France?
When you declare your account online :
- Go to step 3: "Revenus et charges"
- In "Divers", check the box "Retenue à la source, comptes à l’étranger, reprise de réduction ou de crédit d’impôt, etc.
- Then check the box "laration par un résident d’un compte ouvert hors de France"
- Check the 8UU box "Comptes, ouverts utilisés ou clos à l’étranger", then click on “Suivant”
- Click on "Annexe N°3916” and indicate the number of foreign accounts that need to be declared
Lastly, fill in the form with the following information:
What happens if I don't include my Vivid account?
In Spain, if you are required to report your Vivid account and you fail to file the Modelo 720, or if you omit or provide incomplete or wrong information, the penalty would be at least €10,000. Pretty painful, isn't it? Therefore, we recommend you to inform yourself in advance and carefully review all your data.
Declaring your Vivid account to the French tax authorities is a simple formality. This declaration in no way means that your account will be subject to additional tax.
However, be careful not to forget to inform the tax authorities of the existence of your foreign bank account. In case of omission, the bill may turn out to be very steep and you will be liable to a fine of € 1,500.
Watch out! If you are attached to your parents' or guardians' declaration in France, the procedure will be the same. They must declare your Vivid account along with their declaration. Finally, you are obliged to declare your Vivid account even if you don't pay taxes.