Taxation of hospitality establishments: Group 671 or 673?

Correct classification in the Economic Activities Tax (IAE) is fundamental to avoid discrepancies with the Administration. A recent binding ruling from the Directorate General of Taxes (DGT) has delimited the rubrics applicable to hospitality businesses that combine bar activities with the preparation and service of food, such as pizzerias.

What the DGT has resolved

The DGT has established differentiating criteria based on the physical layout of the premises and the consumption method. The criteria are divided into three main scenarios:

• Consumption at the bar without a separate dining room: If the establishment serves pizzas for consumption within the bar itself, but does not have a separate dining area, the activity must be taxed under group 673.
• Existence of a separate dining room: In the event that the premises have a dining room distinct from the bar area, the business must be taxed under two rubrics: the café-bar service and the restaurant service corresponding to group 671.
• Consumption outside the establishment: For the preparation and sale of pizzas intended for consumption outside the premises, including home delivery, heading 677.9 applies.

What this means for you

This resolution directly impacts hospitality establishments that integrate bar services with the preparation of their own food. The distinction does not depend solely on what is sold, but on how the physical space is configured and where the product is consumed. An erroneous classification could lead to an incorrect tax assessment based on the volume of activity and the declared infrastructure.

What should be done

It is necessary to verify the architectural configuration of your premises and the nature of your services. You must confirm whether your business model requires dual taxation (bar and restaurant) or if it falls under a single rubric for a bar with food service. The correct declaration of activities according to RD Leg. 1175/1990 and the TRLRHL is essential to maintain the legal certainty of the business. It is recommended to assess each particular situation to ensure that the declared heading matches the operational reality.