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V2607-21 ·27 October 2021 ·consulta-vinculante Medium impact
Tax

Insurance brokerage is not ancillary to vehicle repair for VAT, but may be for Income Tax

An automobile repair workshop intends to offer car insurance to its customers to earn commissions. The DGT has determined that these activities are independent for VAT purposes, creating distinct sectors, but they may be integrated into the objective assessment for Income Tax if they do not exceed 40% of total income.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment for multi-service workshops, distinguishing between VAT obligations and Income Tax assessment methods based on the proportion of ancillary activities.

Lifecycle

2021-10-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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