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V2517-22 7 December 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · actividad económica empresarial

Self-publishing authors must be taxed as business activities for Income Tax and apply 4% VAT

An author inquired about the appropriate IAE headings for selling books online, as well as the applicable VAT and Income Tax treatment. The DGT ruled that the author must register as both an artist and a publisher, applying the reduced VAT rate and classifying their income as business activity for Income Tax purposes.

The question raised

1st IAE headings in which registration must be made.

The DGT's ruling

In the IAE, registration must be made in group 861 (artist) and under heading 476.1 (book publishing). For VAT, book sales are taxed at the reduced rate of 4%. For IRPF, when publishing their own works, the income is considered returns from business economic activity and not professional activity.

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