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A taxpayer inquired whether they could apply the objective estimation method to their cosmetics retail business while also holding copyrights. The Directorate General for Taxes (DGT) ruled that if copyrights are classified as an economic activity, the direct estimation method must be used, thereby precluding the use of the objective estimation method for the retail activity.
Taxpayers engaging in both retail and copyright-related activities must ensure they comply with the correct taxation method, as the classification of copyrights as an economic activity triggers the mandatory use of direct estimation, making the simplified objective method unavailable for their retail business.
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