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V2451-17 2 October 2017 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

IAE is taxed in the municipality where the premises from which services are effectively provided are located

A cleaning and waste collection company asks which municipalities it must pay the Economic Activities Tax (IAE) in. The DGT responds that the place of performance is the municipal district where the establishment from which services are managed and provided is situated.

The question raised

Taxation of the various premises and the place where activities are carried out.

The DGT's ruling

The place where waste collection and street cleaning activities are carried out is the municipal district where the premises or premises from which the services are effectively provided are located. All activities carried out outside said municipal district are understood to be carried out at said premises. The company must pay taxes in the municipality of its office or management premises and not in the municipalities where it carries out collection operations if it does not have premises there. The premises used for storing vehicles, machinery, or warehouses are taxed based on their surface area.

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