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V0494-24 4 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · régimen especial de la agricultura, ganadería y pesca

Ancillary agricultural services may qualify for simplified VAT regime if they exceed 20% of income, subject to certain limits

A farmer seeks clarification on the applicable VAT regime and Income Tax (IRPF) method if income from services provided to third parties exceeds 20% of their agricultural activity. The Directorate-General for Taxes (DGT) explains that such services would fall under the simplified VAT regime and analyses the available estimation options for Income Tax.

The question raised

1st Taxation in 2024 under VAT.

The DGT's ruling

If ancillary services exceed 20% of the operating turnover in the previous year, they are excluded from the special regime for agriculture, livestock, and fishing. Said services shall be taxed under the simplified VAT regime, unless their income volume exceeds that of the main agricultural activity, in which case the general regime shall apply. For Personal Income Tax (IRPF), they shall be treated as distinct activities, allowing for the use of objective estimation for both if the requirements are met, or direct estimation if the objective estimation is waived or the income limit is exceeded.

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