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V0809-18 23 March 2018 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

IAE classification must be based on the material nature of manufactured products

Following an inspection, a company inquired whether it could be classified under multiple IAE headings based on an expert certificate. The DGT ruled that classification depends on the material nature of the products and that the company must register for all headings corresponding to the activities it actually performs.

The question raised

The taxpayer asks whether its industrial activity could be classified under headings 251.1, 251.2, and 253.6, all of the first section of the Tax, based on a certificate issued by an expert, given that the nature of the products manufactured in the industrial process was not taken into account during the inspection procedure.

The DGT's ruling

Classification within the IAE Tariffs must be carried out according to the material nature of the activities. If a company produces different products with differentiated classifications in the Tariffs, it must be registered under all headings that classify said activities. Inclusion in a heading is determined by its material content, and the activities must coincide with the denomination or note of the respective headings.

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