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. Eurostat states that its roll out work included publishing introductory guidelines that describe the overall logic of how activities are classified, and explanatory notes that give guidance for specific categories. The Central Statistics Office states that Eurostat has provided explanatory notes detailing what is covered by each NACE Rev. 2.1 category, alongside the manual and the correspondence tables. A note is therefore not a summary or a commentary.

It is the definition of the category, in the form in which the classification authority publishes it, and a code quoted without its note is quoted without its definition.

What does a note contain?

A note contains the title of the category, a description of the activities included in it, a list of activities excluded from it, with a cross reference to the category where each excluded activity belongs, and, where the boundary is difficult, a statement of the borderline cases and how they are resolved. The inclusions state the core of the category. The exclusions state the boundary, by naming the activities that look similar but belong elsewhere, and by pointing to the category that holds them. The borderline cases state the rule for activities that sit near the boundary, so that two coders, working from the same note, reach the same result. A note should be read in full, not in part, because an inclusion read without its exclusion will overstate the category, and an exclusion read without its cross reference will leave the excluded activity without a home. The note is a complete statement, and a partial quotation of it is a partial definition.

How is a note used?

A note is used in three ways, and each way needs the note in full. First, a note is used to understand a category, by reading what it covers before comparing a figure for that category with another figure. Second, a note is used to trace a move between versions, by reading the note for the old category and the note for each new category, and by recording what moved and what stayed. Third, a note is used as evidence in a check with a register holder, by showing the holder the note for the category in question, alongside the activity description, and asking the holder to confirm the entry. In none of those uses does the reader determine the code for a specific unit from the note alone. The note defines the category. The holder decides the entry, on the activity description and the evidence the holder requires. A reader who quotes a note as if it decided a unit’s code overstates the note, and the overstatement should be corrected by adding the holder to the check.

How is a note cited?

A note is cited by naming the classification, the version, the category, and the document in which the note appears, with the date of the check. Eurostat publishes the notes as part of the NACE Rev. 2.1 manual, in its 2025 edition, with product code KS-GQ-24-007, and through ShowVoc, where the notes are linked to the categories. A citation should state which form was consulted, the manual PDF or the ShowVoc page, because the two forms can differ in edition, and the edition matters where a note has been corrected. A citation that gives only the code and a paraphrase of the note, without naming the document and the version, cannot be checked, because the reader cannot tell which edition was paraphrased. A citation that quotes the note should quote it accurately, with the inclusions and exclusions that matter to the argument, and should not shorten it in a way that changes the boundary.

Note element	What it states	Why it matters
Inclusions	Activities covered by the category	Core of the category
Exclusions	Activities not covered, with cross references	Boundary of the category
Borderline cases	How difficult cases near the boundary are resolved	Consistency of coding
Cross references	Categories where excluded activities belong	Placement of excluded activities

The table is a reading guide for a note, not a note itself. It states what to look for in a note, in the order in which a note should be read, so that a reader does not stop at the inclusions and miss the boundary. No category title or inclusion is asserted in this table, because the table is about the form of a note, and the content of a note belongs to the note for the category in question.

What is the difference between a note and a guideline?

A note gives guidance for a specific category. A guideline gives the overall logic and methodological principles of the classification. Eurostat distinguishes the two in its account of the roll out: introductory guidelines describe the overall logic of how activities are classified, and explanatory notes give guidance for specific categories. The guidelines state the principles for deciding a principal activity, for handling outsourcing, for treating intermediation, and for applying the hierarchy. The notes apply those principles to a named category. A reader who needs the principle should open the guidelines. A reader who needs the meaning of a named category should open the note. A reader who needs both should open both, and should cite each for the point it supports, rather than citing a note for a principle, or a guideline for a category meaning.

What does a note not decide?

A note does not determine the code for any reader, and it does not decide tax, licensing, funding, collective agreement or social security questions. It defines a statistical category, for the collection and presentation of statistics. Confirmation for a specific business comes from the national statistical institute or the business register holding its record. The note is the evidence shown to the holder, and the holder decides the entry. A note quoted without its holder, as if it decided the entry, misstates the note, and the quotation should be corrected by naming the holder and the check made with the holder.

Open the note for the category in the version in use, read the inclusions, exclusions and borderline cases in full, and confirm a business entry with the institute or register that holds it.