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V2502-20 22 July 2020 · SG de Tributos Locales Criterion in force
OTRO · hecho imponible

One-off economic activities may be subject to the Business Activities Tax

A query was raised regarding the tax obligations arising from performing economic activities of minor scale and occasional nature. The DGT ruled that regularity or the intention to make a profit are not requirements for tax liability.

The question raised

It is desired to know the tax obligations that would derive from the exercise of those non-habitual activities.

The DGT's ruling

The taxable event for the Tax on Economic Activities occurs by the mere exercise of any economic activity, without habituality or the absence of profit motive being indispensable requirements. Liability depends on whether the activity involves the self-organization of means of production and human resources, or one of the two. If the taxpayer is a natural person and is exempt, the filing of census declarations (forms 036 or 037) replaces the specific tax returns.

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