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An agricultural business owner inquired whether conducting trials and crops for a public entity could be considered an ancillary service to their main activity. The DGT ruled that these do not meet the requirements of Article 127 of the VAT Act, meaning they will be taxed under the simplified regime.
Agricultural businesses performing testing or specific cultivation services for third parties cannot treat these activities as ancillary to their main farming operations for VAT purposes and must apply the simplified regime.
The tax team reviews your specific situation.
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