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V0410-20 20 February 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · asistencia técnica

Agronomic advisory services for agricultural holdings subject to 10% VAT

An agricultural engineer has requested clarification on the VAT rate applicable to advisory services provided to holders of agricultural holdings. The Directorate General for Taxes (DGT) has ruled that these services are classified as technical assistance and are therefore eligible for the reduced rate of 10%.

The question raised

Applicable tax rate for Value Added Tax purposes for the aforementioned operations.

The DGT's ruling

To apply the reduced rate of 10% on services provided to holders of agricultural holdings, such services must be necessary for their development and must not consist of the leasing of assets. Agronomic consultancy is considered technical assistance, including tasks such as pest identification, sampling for analysis, advice on pruning or fertilisation, and certification of integrated production methods. The drafting of plans or the assembly and repair of machinery are not considered technical assistance.

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