Skip to content
Back to index
V0678-22 29 March 2022 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Spaces leased within a department store for a stand are not considered premises for IAE purposes

A clothing retail company has enquired whether it must register for the Economic Activities Tax (IAE) regarding space leased within a department store. The Directorate General for Taxes (DGT) has ruled that such spaces do not constitute premises for tax purposes.

The question raised

Whether, due to the activity carried out in the space ceded by the department store, a registration must be made in the Tax on Economic Activities in said premises and under which heading.

The DGT's ruling

The applicant's activity is wholesale trade, as they sell to an establishment for resale and not to the final consumer. The payment of wholesale trade fees entitles one to retail sales. Spaces ceded within a department store for the placement of a stand are not considered premises according to note 3 of group 661. Therefore, said space should not be considered for the surface area tax element nor for the location coefficient.

Book your free first meeting