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A query was raised regarding whether VAT compensations under the special scheme for agriculture, livestock, and fisheries (REAGP) are subject to repayment when goats are sold between farmers under the same scheme. The Directorate-General for Taxes (DGT) ruled that there is no obligation to repay compensations if the purchaser is another taxable person under the same scheme who uses the products for their business activity.
This ruling provides legal certainty for livestock farmers under the special VAT scheme, confirming that intra-scheme sales do not trigger the need to repay previously claimed VAT compensations, provided the goods are used for business purposes.
The tax team reviews your specific situation.
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