DGT criteria for classifying consulting and training services in the IAE

The correct determination of the heading in the Economic Activities Tax (IAE) is a fundamental aspect of fulfilling a company's tax obligations. Recently, the Directorate General of Taxes (DGT) has clarified how this classification should be carried out when an entity provides services that combine consulting and training.

What the DGT has resolved

The ruling focuses on determining which tax headings an activity offering consulting and training services should be registered under. The DGT's criterion establishes that IAE classification is strictly determined by the nature of the activity performed.

Regarding consulting, the administration points out that there are various classification options depending on the specialization, such as legal, financial, advertising, or market research services. On the other hand, for training activities, the corresponding heading will depend on the type of service: whether it involves professional development, general education, or if the activity is carried out outside of a permanent establishment.

Furthermore, the DGT indicates that these activities may be classified under group 84 for services to businesses or in the education section, depending on the core of the provision.

What this means for you

For companies that carry out hybrid activities or professional services, this criterion implies that there is no single heading for consulting or training in a generic sense. The entity must analyze the essence of what it actually offers to the market to avoid errors in the tax declaration.

An erroneous classification could lead to an incorrect application of rates or inconsistencies in the information provided to the Administration. The nature of the service is the determining factor in choosing between the business services group or the education section.

What you should do

It is necessary to conduct a detailed analysis of the services the entity habitually provides. To ensure regulatory compliance, you should:

• Identify whether the main activity is the provision of professional services or education.
• Determine if the consulting has a technical specialization (legal, financial, etc.) that requires a specific heading.
• Evaluate whether the training is provided through a permanent establishment or externally.

Each situation presents particularities that require a technical assessment to ensure that the selected heading corresponds to the economic reality of the company.