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V2891-20 23 September 2020 · SG de Tributos Locales Criterion in force
OTRO · hecho imponible

IAE registration must be based on the material nature of activities rather than corporate purpose

An entity requested guidance on which IAE headings it should register under based on its corporate purpose. The DGT ruled that the tax is accrued through the actual performance of activities, regardless of the corporate purpose stated, and that classification within the tax rates must be based on the true material nature of those activities.

The question raised

Question regarding which headings of the Tax Rates the entity must be registered under given said activities.

The DGT's ruling

Liability for the IAE depends on the actual exercise of economic activities pursuant to Article 79.1 of the TRLRHL, regardless of the corporate purpose. Classification within the Tax Rates shall always be carried out based on the true material nature of the activities performed. The payment of the fee exclusively authorizes the exercise of the activity for which it is paid.

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