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V2542-23 22 September 2023 · SG de Tributos Locales Criterion in force
OTRO · iae

Taxation for each economic activity in the IAE must be based on its material nature

A query was made regarding the classification of assembly, maintenance, repair, and machinery manufacturing activities within the IAE. The DGT ruled that the entity must register under the specific headings that correspond to each activity actually performed.

The question raised

Question posed: Classification of the activities carried out by the company in the Economic Activities Tax Tariffs.

The DGT's ruling

The classification of activities in the IAE Tariffs is carried out based on their material nature, regardless of the denomination given by the holders. If assembly, maintenance, and repair are performed, taxation must be applied to both the installations group and the repair group. If machinery is also manufactured, the corresponding machinery construction heading must be added. The manufacturer may install their own machinery without paying an additional fee if the installation is performed by themselves.

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