Taxation of gardening services under heading 911 of the IAE

The correct classification of an economic activity in the Business Activities Tax (IAE) is fundamental to complying with tax obligations from the start of operations. Recently, the Directorate General of Taxes (DGT) has clarified the heading applicable to gardening and green space maintenance services.

What the DGT has ruled

The query concerned the tax heading in which activities involving the planning, practical execution, and maintenance of green spaces, such as gardens or courtyards, must be registered. After analyzing current regulations, the DGT has ruled that these services must be taxed under heading 911 of the first section of the Tariffs.

This heading corresponds to the group of agricultural and livestock services. The ruling specifies that this section concretely includes the services of planting and maintaining gardens and parks, which directly links gardening activities to this group of services.

What it means for you

If you are an individual starting a professional activity dedicated to the care of green areas, the regulations require you to register under heading 911. This classification is not optional and responds to the nature of the services provided, which the administration assimilates into the category of agricultural services.

Using an incorrect heading could lead to inconsistencies in your tax returns and in the management of your activity before the Tax Administration. Determining the correct heading is an essential step when registering the activity.

What you should do

When starting a garden maintenance or green space planning activity, it is necessary to verify that the registration in the IAE is carried out under heading 911, in accordance with the provisions of the IAE Instruction and the Consolidated Text of the Law Regulating Local Treasuries. It is fundamental to ensure that the description of the services provided matches the nature of the selected heading to avoid taxation errors.