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V2578-20 28 July 2020 · SG de Tributos Locales Criterion in force
OTRO · iaé

IAE classification depends on whether activity is construction or finishing and decoration

A company has requested clarification on which IAE heading to register under for property rehabilitation, renovation, and decoration. The DGT indicates that the heading depends on the nature of the works and whether certain budget or surface area thresholds are exceeded.

The question raised

Question regarding which tax heading the company must be registered under.

The DGT's ruling

If the activity is rehabilitation and includes construction works, heading 501.3 applies, unless a budget of 36,060.73 euros or 600 square meters is exceeded, in which case 501.1 shall apply. If the activity is limited exclusively to renovation and decoration as the final phase of construction, it shall be classified under headings 505.6 or 505.7. Furthermore, if decorative elements unrelated to the works are sold, registration in retail trade categories is required.

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