20 / 20 Glossary and questions

Glossary and questions

Terms used across the register, from section to class, and short answers to questions readers ask most often.

The four levels

1. Level 1 Section One letter
2. Level 2 Division Two digits
3. Level 3 Group Three digits
4. Level 4 Class Four digits

Guides in this cluster

• What is an aggregation in NACE statistics?

  An aggregation groups NACE categories into a smaller number of headings for publication, defined in the metadata, and it is not a NACE level.

• What is a correspondence table?

  A correspondence table shows the relationship between categories in two classifications, or between two versions of one classification, pair by pair.

• Does my code decide a collective agreement or social security status?

  No. A NACE code does not decide collective agreement coverage or social security status. Both are decided under the law and rules that govern them.

• Does my code decide my licence or funding?

  No. A NACE code does not grant a licence, and it does not decide funding eligibility. Both are decided by the authority that administers them.

• Does my code decide my tax?

  No. A NACE code is a statistical classification only. It does not set a tax rate, decide a tax status, or determine what tax is owed.

• What is an explanatory note?

  An explanatory note states what a NACE category includes and excludes, and it is the record of meaning for that category.

• How do NACE, ISIC and national variants fit together?

  ISIC is the international standard, NACE is the European derivation, and national variants add detail below the shared levels, each confirmed with its own institute.

• How does NACE differ from NAICS?

  NACE is the European classification derived from ISIC, while NAICS is the North American system for the United States, Canada and Mexico, and the two are compared only through correspondence.

• How does NACE differ from UK SIC?

  UK SIC 2007 was revised in parallel with NACE Rev 2 and is identical to NACE to four digits, with a fifth digit for United Kingdom detail.

• What is a principal activity?

  A principal activity is the activity that contributes most to the value added of a unit, and it is the basis on which the unit is coded in statistics.

• What do section, division, group and class mean?

  Section, division, group and class are the four levels of NACE, from the broadest letter heading to the most detailed four digit class.

• What is a statistical unit?

  A statistical unit is the entity classified in statistics, such as an enterprise, an establishment, or a legal entity, and the code held depends on the unit type.

All guides or home.