Common Mistakes in the Certification of Sample Book Projects  

SARA MARTÍN

Quality Engineer – Quality R&D&I

Technical Criteria Manager

The certification of sample collections allows companies in sectors such as textiles, footwear, and leather goods to claim a 12% tax credit for technological innovation. Every year, companies in sectors such as textiles, footwear, leather goods, toys, wood, and furniture develop new collections and prototypes to meet market demands.

What many people don’t realize is that these developments can qualifyfor a12% tax deduction for technological innovation, provided they meet the requirements set forth in Article 35 of Law 27/2014 on Corporate Income Tax. 

To qualify for this incentive, you must demonstrate that the sample book project meets the technical and documentation criteria required by the relevant regulations. 

In this context, there are certain aspects that should be reviewed before beginning the certification process. The regulations specify which activities are eligible, which expenses may be included in the tax deduction base, and what evidence is required to support the project. 

What is considered a sample book for tax purposes? 

For tax purposes, a sample collection is a set of prototypes developed to create, define, and validate new collections featuring technological and design innovations that have not yet been introduced to the market.

These are not commercial products intended for sale, but rather items used for:

• Validate designs.
• Develop new collections.
• Conduct technical tests.
• Generate documentation related to the development process.

When these projects meet the requirements set forth in the regulations, they may be considered technological innovation activities and qualify for a 12% tax deduction.

Common Mistakes in Sample Book Certification 

Mistake 1: Treating all phases of the project as deductible 

One of the most important aspects of certification is correctly identifying which activities fall under the deductible phases.

The relevant technical and regulatory documents identify four phases:

Phase 1. Concept Development and Trend Identification 

It includes activities such as: 

• Market research. 
• Trend analysis. 
• Benchmarking. 
• Visits to trade shows. 

Phase 2. Design and Definition 

This includes the technical development of the product: 

• Designs. 
• Technical data sheets. 
• Blueprints. 
• Patterns. 
• Molds. 

Phase 3. Prototype Development 

Includes: 

• Prototype manufacturing. 
• Tests. 
• Validations. 
• Technical adjustments. 

Phase 4. Pre-production, marketing, and distribution 

Related to the marketing of the product. 

According to the relevant regulatory documentation, only phases 2 and 3 of the Sample Projects may be included in the basis for the tax deduction for technological innovation. 

Mistake 2. Including non-deductible expenses 

The regulations expressly specify certain expenses that cannot be included in the tax deduction base. 

These include: 

• Market research. 
• Marketing and promotion. 
• Product catalogs. 
• Production intended for sale. 
• Trend-spotting trips. 
• Business activities. 
• Distribution and logistics. 

Therefore, it is essential to distinguish between the costs associated with the technical development of the catalog and those related to the company’s commercial activities. 

Mistake 3: Not having sufficient evidence of the work performed 

Certification requires evidence to verify the effective development of the sample collection. 

These include: 

• Prototypes. 
• Technical data sheets. 
• Patterns. 
• Molds. 
• Technical photographs. 
• Testing and validation documentation. 

This evidence serves to verify the activities carried out during the relevant periods and to support the documentation submitted during the certification process. 

Mistake 4: Failing to adequately justify the novelty of the sample collection 

The technical evaluation includes a review of the new features or innovations incorporated into the sample collection.

The technical report must identify and describe the main new features or innovations incorporated into the product catalog compared to previous versions, as well as its distinguishing characteristics.

This information is essential for the project to be evaluated in accordance with the criteria established for technological innovation activities.

Error 5. Submitting insufficient technical documentation 

The technical report is one of the key components of the certification process.

Certification requires a sufficiently detailed technical report that allows for the evaluation of the activities carried out during the eligible phases and verification of their compliance with the criteria established in the relevant regulations.

Therefore, it is advisable to clearly document the following:

• The activities carried out.
• The objectives pursued.
• The results obtained during the development of the sample book

Mistake 6: Failing to properly justify allocated expenses 

In addition to the technical evaluation, the certification process includes a financial review of the project's associated costs.

This assessment examines the relationship between the activities carried out and the costs allocated to the sample.

The following types of expenses must be directly attributable to activities carried out during the eligible phases of the project:

• Personnel expenses.
• Materials.
• External collaborations.
• Depreciation.
• Other expenses.

It is also important that the financial documentation be consistent with the information provided in the technical report.

Error 7. Failure to justify exceeding the recommended limits 

If the budget or actual expenditure exceeds the limits recommended by the relevant ministry for the type of sample requested (for both Phases 2 and 3 as well as the total), you must provide justification and explain why these limits were exceeded.

These limits vary depending on:

• The type of sample book.
• The company's annual revenue.

Therefore, an explanation must be provided only if the limit is exceeded, stating, for example:

• Whether more, fewer, or different resources were needed, and to what extent.
• What is the cause of these variations?

Mistake 8: Confusing prototypes with commercial products

Samples eligible for a tax deduction consist of prototypes intended to define, validate, and develop new collections.

For this reason, it is important to clearly distinguish between:

• The prototypes developed during the project.
• Products intended for production or sale.

Properly identifying these activities makes it easier to define the scope of the project and assess the associated costs.

Mistake 9: Failing to properly define the scope of the project 

One of the most important aspects of certification is to clearly distinguish between activities that are part of the development of the product range and those that fall under marketing, sales, or production.

The relevant regulations specify which phases and activities may be included in the tax base and which are excluded.

Therefore, it is essential to properly define the scope of the project from the outset, clearly identifying:

• Activities related to product design and specification.
• Activities related to the development of prototypes.

An insufficient definition of the scope may affect the technical and economic evaluation of the project, since only certain activities and expenses can be included in the basis for deduction.

ACERTA's role in properly certifying a sample collection 

At ACERTA we analyze, structure, and technically certify sample collection projects so that companies can access tax deductions for Technological Innovation with the utmost legal certainty.

Our team conducts a technical and documentary analysis to verify that:

• The project meets the requirements for technological innovation.
• The activities are clearly divided into phases.
• Expenses are itemized and traceable.
• The technical documentation is sufficient.
• The project is eligible for certification and a Binding Reasoned Report (IMV).

Thanks to this process, companies can ensure that the tax deduction is applied correctly and enjoy greater legal certainty throughout the certification process.