Skip to content
Back to index
V2039-18 10 July 2018 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Industrial activity heading must be used if waste transformation is subcontracted to obtain a different product

A company trading in fatty waste consulted whether its classification under group 623 was correct when subcontracting the transformation of said waste. The DGT ruled that if the waste is transformed into a different product through an industrial process, it must be taxed under the corresponding industrial activity heading.

The question raised

Taxation under the Tax on Economic Activities.

The DGT's ruling

If the company markets the waste in the same state in which it is acquired, group 623 is correct. However, if it subjects the waste to a transformation process to obtain a different product, even if said industrial activity is subcontracted, it must be registered under the industrial activity heading (such as 253.5). Registration under an industrial heading authorizes wholesale, retail, and export of the products obtained.

Book your free first meeting