Manipulation of third-party plastic labels will be taxed under heading 482.2 of the IAE

The classification of economic activities in the Business Activities Tax (IAE) is fundamental to determining the tax obligations of any business. A recent binding ruling from the Directorate General of Taxes (DGT) has clarified the treatment applicable to companies that perform transformation processes on plastic materials that have not been acquired by them, but rather supplied by their clients.

What the DGT has resolved

The advisory body has analyzed the activity consisting of the manipulation of plastic parts, which includes specific processes such as die-cutting, cutting, rewinding, and label marking. According to the DGT's criteria, even if the base material is supplied by third parties, the execution of these operations requires registration under heading 482.2 of the first section of the IAE Tariffs.

This heading specifically corresponds to the manufacture of finished articles made of plastic materials. The administration considers that these technical transformation operations fit into the category of manufacturing and not into a mere provision of services of another nature.

What it means for you

The impact of this resolution depends on the legal nature of the entity performing the activity:

• Companies and legal entities: They must register and maintain their activity under heading 482.2, which determines their taxation regime in the IAE.
• Individuals: If the professional performs these activities individually, they could benefit from the tax exemption in accordance with Article 82.1.c) of the TRLRHL.

What should be done

When performing plastic transformation activities, it is necessary to verify the correct registration in the census of entrepreneurs. In the case of being an individual and opting for the exemption provided for in the regulations, the procedures must be formalized using Form 036. It is fundamental to analyze the nature of the processes performed to ensure that the selected heading is correct and to avoid possible requests from the Administration.