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V1289-14 14 May 2014 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

No requirement to register for IAE in municipalities where services are provided without a physical establishment

A query was raised regarding whether a recruitment and selection agency must register for the Economic Activities Tax (IAE) in the municipalities where its clients' facilities are located. The Directorate-General for Taxes (DGT) ruled that the entity is only required to pay tax in those municipalities where it maintains establishments from which it effectively provides its services.

The question raised

It is desired to know whether registration is required for the Tax on Economic Activities (form 840) in the municipality where the client's facilities are located.

The DGT's ruling

The activity of personnel selection and recruitment is provisionally classified under heading 849.6. The place of performance for services provided from an establishment is the municipal district where said establishment is located. If the entity provides services in the municipalities of its clients but does not have an establishment in them, it is not required to register or pay fees in those municipalities.

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