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V0931-22 29 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · impuesto sobre actividades económicas

IAE classification for representation and training services, and deduction of household utility costs

An individual seeks clarification regarding their IAE classification, VAT liability for their services, and the application of IRPF reductions. The DGT determines the relevant IAE headings based on the specific activity and establishes the rules for location and expense deduction.

The question raised

1.) IAE heading in which the activities performed must be classified.

The DGT's ruling

For the IAE, administrative management services are classified under heading 849.7, whereas teaching may fall under groups 821 or 824 if professional, or under the first section if business-related. Regarding VAT, representation services provided to an entity in Costa Rica may be subject to tax based on the effective use criterion in Spain. Regarding IRPF, the reduction under art. 32.2.2 is not applicable due to the lack of withholdings, but the reduction under 32.2.3 is applicable. Housing supplies are deductible by applying 30% to the proportion of square meters allocated to the activity.

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