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V3300-14 10 December 2014 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

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

A DIY company enquired whether its various retail activities could be grouped under the heading for 'mixed trade or integrated large-scale retail'. The DGT ruled that, as its activities do not match the description of that group, it must pay tax according to each of the specific headings that correspond to the activities it actually performs.

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 classified independently under each of the rubrics corresponding to the activities actually carried out or, conversely, whether all of them can be included within "Mixed or integrated commerce in large surfaces" of group 661 of the first section of the Tax Tariffs.

The DGT's ruling

Classification under the headings for mixed commerce (department stores, hypermarkets, or popular warehouses) depends on the material content of the activity and not on the formal designation of the establishment. If the activity carried out does not match the description of the headings in group 661, the taxpayer must register and pay taxes for each of the rubrics that classify their various commercial activities or services provided.

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