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V3887-15 4 December 2015 · SG de Impuestos sobre el Consumo Criterion in force
IVA · impuesto sobre actividades económicas

Determination of IAE headings for video design and editing, and VAT deduction rules

A professional seeks guidance on which IAE headings to use for graphic design and video editing, and how to deduct VAT on home and vehicle expenses. The DGT clarifies the distinction between professional and business activities under the IAE and the requirements for the allocation of assets to justify VAT deductions.

The question raised

Question raised - Headings of the Tax on Economic Activities in which registration is required.

The DGT's ruling

In the IAE, a graphic designer is a professional if they carry out the activity personally (group 399), but is an entrepreneur if they do so through an organization (heading 843.9). For video editing, heading 961.1 applies. Regarding VAT, household supplies are only deductible if they are used exclusively for the activity, and passenger vehicles are subject to a presumed allocation of 50%. Expenses related to the vehicle (fuel, repairs) require proof of their allocation to the activity.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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