Limits on the sale of gift items for bakery and dairy shops

The correct determination of the heading in the Economic Activities Tax (IAE) is fundamental to avoid tax contingencies. Recently, the Dirección General de Tributos (DGT) has clarified the scope of activities permitted under the heading intended for the trade of bakery, pastry, and dairy products.

What the DGT has ruled

The query concerned whether an establishment with heading 644.1, dedicated to the trade of bakery and dairy products, could include the sale of gift items such as keychains, magnets, or mugs in its activity. The body has ruled that, while this heading allows for the marketing of food products in novelty, porcelain, or costume jewelry packaging, it does not authorize the sale of gift objects as such.

For the marketing of household goods, hardware, ornaments, gifts, or promotional items, the regulations require the use of heading 653.3. Therefore, the activity of selling decorative or gift objects requires a specific registration under said IAE heading, in accordance with Royal Legislative Decree 2/2004 and Royal Legislative Decree 1175/1990.

What it means for you

If your business is primarily dedicated to the sale of bakery or dairy products, you must be cautious when introducing complementary products that are not strictly food items or packaging for them. Including items such as mugs, magnets, or keychains without the corresponding registration under heading 653.3 could lead to an incorrect declaration of economic activity to the Administration.

What you should do

It is necessary to analyze the catalog of products marketed in the establishment. If the sale of gift items or household goods constitutes part of the activity, you should consider the coexistence of different headings or a change of the main heading as appropriate. Each business situation must be analyzed to ensure that the IAE registration faithfully reflects the reality of the economic activity being carried out.