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V2155-19 ·13 August 2019 ·consulta-vinculante Medium impact
Tax

Agricultural insurance payouts are not subject to VAT and do not entitle the recipient to VAT offsetting

A cooperative sought clarification on whether agricultural insurance payouts made to its members should include VAT. The Directorate General for Taxes (DGT) ruled that these amounts do not constitute consideration for services, but are rather compensation for damages; therefore, they are not subject to VAT and do not count towards offsetting under the special regime.

In 6 key points

How it affects those involved

This ruling clarifies that insurance indemnities for agricultural losses are outside the scope of VAT, preventing incorrect invoicing and ensuring that such payments do not affect the calculation of VAT offsetting within the special agricultural regime.

Lifecycle

2019-08-13PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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