Retail & Distribution

Large-store tax and surcharge audits: when what is argued is a floor plan

Nextica Law & Tax defends retail businesses in the audits that are specific to them: those of the Catalan Tax Agency on the large retail establishments tax —chargeable floor area, exemptions and form 910—; and national ones on the equivalence surcharge, VAT on promotions, discounts and vouchers, and packaging obligations. Submissions at the hearing stage, appeal for reconsideration and economic-administrative claim, with a clear view of what to argue and what not to argue before signing the assessment record.

In the large retail establishments tax, almost the whole dispute is a floor plan: which square metres are sales area and which are not.

What's included

1. Preparing the floor area file before it is requested

technical project, activity licence, as-built plans and the actual use of each area.

2. A survey or expert measurement where the declared area is disputed, which is where almost all the amount is decided.

3. Responding to the request and the hearing stage with documents organised by area and by concept.

4. Deciding whether to sign the assessment in agreement, taken with the open years calculated in front of you and not with this year's penalty saving.

5. Submissions and, where appropriate, an appeal for reconsideration or an economic-administrative claim within the month the law allows.

6. Managing suspension of enforcement and guarantees where the amount requires it.

7. Correcting the basis going forward so the next self-assessment does not repeat the argument.

ALMOST THE WHOLE DISPUTE IS A FLOOR PLAN

In retail-specific audits, the argument is not legal: it is about measurement and deadlines.

Disputed chargeable area

whether internal storerooms, circulation areas, car parks or common services count as sales area is sustained with the technical project, the licence and the physical reality of the premises, not with an opinion. Correcting backwards costs more than declaring correctly from the start.

Law 5/2017

One month from the day after notification to appeal, whether by reconsideration or through the economic-administrative route, and the two cannot be used at once. Requesting a payment deferral does not extend the period.

General Tax Act

Signing the assessment in agreement reduces the penalty but sharply narrows what can be argued afterwards, and in a network the accepted basis then applies to the following years and to the other stores.

General Tax Act

TYPES OF MINUTES AND WHEN TO SIGN EACH ONE

Type of minutesReduction of sanctionAppealable?Recommended strategy
Minutes with agreement (art. 155 LGT)50% of the penaltyNo (links to the taxpayer)When the amount is manageable, the arguments are weak, and the client wants to close quickly. The 50% reduction can be very significant in high penalties.
Agreement Act (art. 156 LGT)30% of the fineOnly the fee, not the penaltyWhen the regularization is justified but there are specific discrepancies regarding the fee that deserve appeal. The undisputed part is accepted, and what has arguments is appealed.
Record of disagreement (art. 157 LGT)No reductionFully appealableWhen there are solid arguments to contradict the inspector's proposal. Disagreement opens the way to the TEAR and, if applicable, to the courts. Without a reduction of the penalty but with the possibility of winning the appeal.

Minutes with agreement (art. 155 LGT)

Reduction of sanction50% of the penalty
Appealable?No (links to the taxpayer)
Recommended strategyWhen the amount is manageable, the arguments are weak, and the client wants to close quickly. The 50% reduction can be very significant in high penalties.

Agreement Act (art. 156 LGT)

Reduction of sanction30% of the fine
Appealable?Only the fee, not the penalty
Recommended strategyWhen the regularization is justified but there are specific discrepancies regarding the fee that deserve appeal. The undisputed part is accepted, and what has arguments is appealed.

Record of disagreement (art. 157 LGT)

Reduction of sanctionNo reduction
Appealable?Fully appealable
Recommended strategyWhen there are solid arguments to contradict the inspector's proposal. Disagreement opens the way to the TEAR and, if applicable, to the courts. Without a reduction of the penalty but with the possibility of winning the appeal.

Frequently asked questions

Can the chargeable floor area be argued?

It is where most of the litigation happens, and it is sustained with documents, not opinions: the technical project, the activity licence, as-built plans, the actual use of each area and, where needed, an expert survey. The typical argument is whether internal storerooms, circulation areas, car parks and common service areas count when the establishment sits within a retail complex. It is worth having that work done before the first self-assessment, because correcting backwards always costs more than declaring correctly from the start.

How long do I have to appeal an assessment?

One month from the day after notification, whether you choose the appeal for reconsideration before the same body or go straight to the economic-administrative claim; the two routes cannot be used at once. Asking to defer payment does not extend that period, and suspending enforcement requires a guarantee except in specific cases. That is why the useful decision is taken earlier: signing the assessment record in agreement reduces the penalty but sharply narrows what can be argued afterwards.

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