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A taxpayer inquired which net yield indices should be applied under the objective estimation regime for grape production with Protected Designation of Origin (PDO) across two different municipalities. The Directorate-General for Taxes (DGT) ruled that the index corresponding to the specific municipality where each part of the activity is carried out must be applied.
This ruling clarifies the territorial application of tax indices for agricultural activities spanning multiple municipalities, ensuring that yield rates are correctly assigned based on the specific location of production.
The tax team reviews your specific situation.
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