Differences between taxes and fees

For most of us taxes and fees are the same, since both end up being amounts of money that we have to pay to the Administration, regardless of whether it is Local, Community or State. However, from the fiscal point of view they are not, since each one of them has different characteristics and there are some differences that it is important to know. Continue reading this article where we will explain in detail what are the main differences between taxes and fees, so you will know exactly what you are paying in each case.

What are the rates and their characteristics

The rates are characterized because they are paid in exchange for a service that the administration carries out and that we as citizens receive and use for our benefit, or because we use a public good in a particular way, that is, that belongs to the state.

Therefore, the fees must be paid directly by all those who use a service. For example, we all have to pay the fees derived from the use of water, because it is a good that all citizens use, but in the case of the rate paid at the time of making an opposition, only those that are presented to the same ones, that is, those who are going to make use of said service in particular.

What are taxes and their characteristics

Taxes, on the other hand, are characterized, mainly, because they are paid without receiving any direct compensation in exchange. What generates the obligation to pay the tax is what is called a taxable event, that is, that act or situation that obliges us to pay the tax because it is included in the law. For example, in the case of Personal Income Tax (IRPF), the taxable event is to receive the rent. In the case of the inheritance tax, in the places where it is still valid, the taxable event is to receive an inheritance.

There are different types of taxes and are commonly classified as direct, such as personal income tax, or indirect, such as VAT or the tax levied on tobacco or gasoline.

Once you know the main differences between taxes and fees, you should know that both are taxes, that is, an obligation to pay money established by law, whose amount is intended to support the various public charges.