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V3189-20 23 October 2020 · SG de Tributos Locales Criterion in force
OTRO · iae

Registration in construction tax headings required if coordinating works via subcontracting

An architect sought clarification on which IAE (Business Activity Tax) heading to use when coordinating works by subcontracting all services and issuing a single invoice. The DGT ruled that, by managing and directing the works, the professional is performing construction activities and must register under the corresponding tax headings.

The question raised

Requests information regarding the Tariff heading in which they should register for the exercise of said activity.

The DGT's ruling

If the subject performs the management and direction of works while being accountable to clients, they are deemed to carry out construction activities even if they subcontract the works. They must additionally register in the first section of the IAE Tariffs. Heading 501.3 applies to renovation and conditioning works that do not exceed the budget and surface area limits indicated in its attached note. If such limits are exceeded, heading 501.1 must be used.

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