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V2401-17 21 September 2017 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Resident individuals are exempt from the Economic Activities Tax for business activities

A query was made regarding the IAE heading for food preparation intended for on-site consumption, takeaway, and delivery, and whether an individual is exempt. The DGT indicates that registration in two different headings is required, but that the individual is exempt from the tax.

The question raised

It is desired to know the heading in the Economic Activities Tax Schedules where the activity of preparing and making food to be consumed in the establishment itself, for takeaway, and for home delivery must be classified. It is also asked whether, being a natural person, the individual is exempt from the tax.

The DGT's ruling

For the preparation and sale of food for takeaway or home delivery, heading 677.9 applies, whereas for service within the establishment, Group 67 applies. Notwithstanding, resident natural persons are exempt from taxation on the entirety of their business, professional, or artistic activities. This exemption implies no obligation to register for the tax, although they must comply with census obligations through forms 036 or 037.

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