How to deduct VAT when carrying out activities in different sectors
Posted: Mon Dec 23, 2024 8:57 am
When a self-employed person or professional registers with the IAE, he or she must select the heading that best suits the activity he or she is going to carry out. This is sometimes not an easy task, because a business can give rise to different avenues of exploitation that may be complementary to the main one or completely independent.
Examples of this can be found everywhere: the hair salon that also sells cosmetics or the grocery store that makes its own cakes. But you have to be careful because the activities you want to develop may belong to different sectors.
And what is this about differentiated sectors ? According to article 9 of Law 37/1992 on VAT , those sectors in which the economic activities carried out phone number for business and the applicable deduction regimes are different are considered differentiated sectors of business or professional activity .
This may occur, for example, with a language teacher who, in addition to teaching, also carries out translations. Teaching would be exempt from VAT, but translations would not. Therefore, the deduction regimes are different (exempt activities do not deduct VAT as such, but rather as a higher amount of the invoice in the personal income tax).
Economic activities that belong to different groups of the CNAE are considered distinct . The main activity is understood to be that in which the largest volume of operations was carried out during the immediately preceding year. An activity that is accessory to another activity is not considered distinct when, in the preceding year, its volume of operations did not exceed 15% of that of the main activity and, in addition, it contributes to its realization.
Examples of this can be found everywhere: the hair salon that also sells cosmetics or the grocery store that makes its own cakes. But you have to be careful because the activities you want to develop may belong to different sectors.
And what is this about differentiated sectors ? According to article 9 of Law 37/1992 on VAT , those sectors in which the economic activities carried out phone number for business and the applicable deduction regimes are different are considered differentiated sectors of business or professional activity .
This may occur, for example, with a language teacher who, in addition to teaching, also carries out translations. Teaching would be exempt from VAT, but translations would not. Therefore, the deduction regimes are different (exempt activities do not deduct VAT as such, but rather as a higher amount of the invoice in the personal income tax).
Economic activities that belong to different groups of the CNAE are considered distinct . The main activity is understood to be that in which the largest volume of operations was carried out during the immediately preceding year. An activity that is accessory to another activity is not considered distinct when, in the preceding year, its volume of operations did not exceed 15% of that of the main activity and, in addition, it contributes to its realization.