Teaching and family leisure activities will be taxed as professionals or businesses

The classification of an economic activity in the Business Activities Tax (IAE) does not depend solely on the service provided, but on the structure under which it is carried out. The Directorate General of Taxes (DGT) has recently clarified how teaching and leisure activities aimed at families should be categorized.

What the DGT has ruled

The tax authority's criterion establishes a clear distinction based on how the activity is executed:

• Professional activity: If the activity is carried out in a direct and personal manner, it is classified in the second section of the IAE. This includes, for example, group 826 for teaching or 047 for sports activities, depending on their purpose.
• Business activity: If the activity is carried out through a structure or organization, it must be classified in the first section, under headings such as 933.9 or group 934.

In the specific case analyzed, the taxpayer, being a natural person, is exempt from this tax pursuant to Article 82.1.c) of the TRLRHL, but the criterion establishes the general rule for the rest of the taxpayers.

What this means for you

For those operating in the service, training, or recreation sectors, the choice of the heading in the IAE is decisive. It is not enough to define what you do (teach or entertain), but how you do it. If you act autonomously and personally, your regime is professional. If you set up a structure with material and human resources that transcends your own person, you move to the business regime.

What should be done

It is necessary to analyze the actual operation of the business before registering in the census of entrepreneurs. An erroneous classification can lead to inconsistencies in the declaration of the activity. It must be evaluated whether the provision of the service is strictly personal or if there is an organization managing the activity, as this will determine the correct heading in the IAE.