Requirement to register under multiple IAE headings for furniture sales and installation
The Directorate General of Taxes (DGT) has clarified the obligation to register for the Economic Activities Tax (IAE) for companies that do not limit themselves to the mere commercialization of products, but rather integrate technical installation services into their business model.
What the DGT has ruled
After analyzing the activity of a company dedicated to the sale and installation of furniture and appliances, the DGT has established that it is not possible to concentrate all activities under a single heading if the installation tasks require different technical skills. The criteria are broken down as follows:
- Trade of kitchen furniture and appliances: Heading 653.2 must be used, which covers both the sale and its corresponding installation.
- Trade of bathroom furniture: Heading 653.4 applies, although this only includes the installation of glass.
- Installation of showers and sanitaryware: This technical task requires registration under heading 504.2, relating to plumbing.
- Installation of bathroom furniture: The execution of this service must be taxed under heading 505.5, corresponding to carpentry and locksmithing.
What this means for you
If your company combines the sale of products with assembly or installation services that are not integrated into the commercial heading, there is an obligation to register under the corresponding service headings. The IAE Tariff regulations require that registration reflects the reality of all economic activities carried out, avoiding the omission of technical services that have a different nature from mere buying and selling.
What should be done
It is necessary to analyze the composition of your services to ensure that each technical activity is correctly declared. The lack of correspondence between the activities performed and the declared headings can lead to irregularities before the Administration. It is recommended to assess the structure of your operations and verify whether your installation services require the opening of new technical service headings.
Frequently asked questions
- Can I use a single heading if I sell and install the same product?
- It depends on the product; while in kitchens heading 653.2 allows it, in bathrooms the installation of sanitaryware requires a specific plumbing heading.
- What happens if I only sell the bathroom furniture without installing it?
- In that case, the bathroom furniture trade heading (653.4) would apply without the need for technical service headings.