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V2547-14 30 September 2014 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Commercial activities must be classified by their material nature rather than the type of establishment

A company enquired whether its large-scale sporting goods store should be taxed as a mixed trade or an integrated large-scale retail outlet. The DGT ruled that classification depends on the actual content of the activity rather than the formal designation of the premises.

The question raised

Whether, for the purposes of the Tax on Economic Activities, the commercial activities carried out by the applicant in said establishment must be included in the rubrics under which they are registered in the registry, or if, conversely, it can be considered as "mixed trade or trade integrated into large retail formats" and, consequently, it is appropriate to classify it under heading 661.2 of the first section of the Tax Rates.

The DGT's ruling

The classification under the headings for mixed trade or trade integrated into large retail formats (group 661) is not determined by the formal designation of the establishment, but rather by the material content of the activity carried out. For such classification to apply, there must be a coincidence between the actual activity and the conceptual description of the headings. If the activities do not coincide with the descriptions of department stores, hypermarkets, or discount stores, taxation must be carried out for each of the rubrics that classify the activities and services effectively performed.

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