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V1744-20 3 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

Management services for tourist apartments are considered an economic activity and are subject to VAT

An employee provides management services for a tourist apartment (photography, key handling, platform management) for their father. The DGT has ruled that these services constitute an economic activity subject to 21% VAT and must be taxed under the direct estimation method for Personal Income Tax (IRPF).

The question raised

1.) Whether, for said activity, one must register as a self-employed person or as an independent professional in the Tax on Economic Activities, despite having one's own employment, which is not linked to said activity.

The DGT's ruling

The provision of lease management services constitutes the self-organized arrangement of means for an economic activity. Such services of an administrative nature are subject to VAT at the general rate of 21%. For Personal Income Tax purposes, the income obtained is classified as income from economic activities. The net income must be determined using the direct estimation method.

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