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An association of aggregate manufacturers has inquired whether mobile replacement machinery should be included in the calculation of installed capacity for the Economic Activities Tax (IAE). The Directorate-General for Taxes (DGT) has ruled that it can only be excluded if it is declared as reserve equipment and if its use is exclusively for replacing machinery undergoing repair or maintenance.
Businesses using mobile machinery for replacement purposes must formally declare such equipment as reserve to avoid unnecessary tax burdens related to installed capacity.
The tax team reviews your specific situation.
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