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V0982-22 4 May 2022 · SG de Tributos Locales Criterion in force
OTRO · iae

IAE due from the start of effective economic activity; exemption applies to each new activity

A company asked about the correct classification of its IAE headings, when to register and how the exemption for starting activity applies. The DGT clarifies that registration must occur when economic activity actually begins, and the exemption for starting activity applies to each new activity carried out.

The question raised

1. Confirmation of the correctness of the IAE headings in which the registration has been carried out according to the description of the activities.

The DGT's ruling

The IAE accrues by the mere exercise of economic activity, without requiring habituality or profit. The obligation to tax arises upon the effective commencement of activity, not during the facility construction phase. The exemption for the commencement of activity applies to each new economic activity during its first two tax periods. Regarding the exemption for turnover below 1,000,000 euros in corporate groups, the turnover of non-resident entities that do not carry out economic activity in Spain is not included.

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