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A company requested guidance on how to classify its activities involving glass cutting, sealing, and installation alongside retail sales. The Directorate-General for Taxes (DGT) ruled that glass processing and installation are distinct activities requiring independent classification and taxation.
Question posed: Classification of the activity within the Economic Activities Tax Schedules.
The cutting and sealing of double glazing is classified as an industrial activity of glass processing (heading 246.5), which permits the wholesale and retail sale of the processed product. The installation of glass is a distinct activity that must be taxed under its own heading (505.6). The use of owned vehicles for transport is not considered an economic activity if services are not provided to third parties.
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