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A local council has requested clarification regarding VAT taxation on the leasing of hunting grounds and the harvesting of timber in public utility forests. The Directorate-General for Taxes (DGT) clarifies that the transfer of hunting rights is subject to VAT if it constitutes a private asset, but not if it is a concession of a public domain asset. Furthermore, timber harvesting may qualify for the special regime for agriculture, livestock, and fisheries.
This ruling clarifies the distinction between private asset management and public domain concessions, affecting how local authorities tax hunting leases and timber harvesting rights.
The tax team reviews your specific situation.
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