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V2258-20 2 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · empresario

Obligation to register as a business owner when carrying out self-employed economic activities

An employee inquires whether they must register as a business owner to develop a mobile application. The DGT rules that, as this constitutes a self-employed economic activity, the individual must comply with VAT and Personal Income Tax (IRPF) obligations.

The question raised

Whether, in order to carry out self-employed work, one should register as an entrepreneur or professional.

The DGT's ruling

For VAT purposes, a person shall be considered an entrepreneur or professional if they intend to intervene in the market through the organization of means of production, even if on an occasional basis. For Personal Income Tax purposes, the development of mobile applications is classified as income from economic activities. Therefore, the taxpayer must register in the Census of Entrepreneurs, Professionals and Withholders and comply with the corresponding material and formal obligations.

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