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V0218-23 13 February 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Income from self-publishing books classified as income from economic activities for Personal Income Tax purposes

A writer-editor has requested a ruling on the taxation of royalties earned from selling books through digital platforms. The Directorate General for Taxes (DGT) has determined that, when editing one's own works, the income is classified as income from economic activities.

The question raised

In relation to the above, questions are raised regarding taxation in IAE, VAT, and IRPF.

The DGT's ruling

In Personal Income Tax (IRPF), the self-publishing of books entails that the income is classified as income from economic activities. In Value Added Tax (VAT), the assignment of exploitation rights to platforms based outside of Spain is not subject to the tax if the rule of effective use and exploitation is not applied. Regarding the Economic Activities Tax (IAE), the taxpayer must register in group 861 (similar artists) and, if they publish their own work, also in heading 476.1.

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