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A retired textile trader has enquired about the tax treatment of selling remaining stock after ceasing business operations. The DGT has ruled that the sale of such stock constitutes income from business activities for Personal Income Tax (IRPF) purposes and is subject to VAT until the effective cessation of activity and formal deregistration from the tax census are completed.
This ruling clarifies that the cessation of business is not immediate upon stopping operations; tax obligations for both IRPF and VAT persist until the formal deregistration process is finalised.
The tax team reviews your specific situation.
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