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V0729-14 17 March 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · royalties

Reduced 10% VAT rate applies to seed supply and necessary technological services for agricultural holdings

An economic interest group requested clarification on the VAT rate applicable to the delivery of plant material and technology transfers (royalties) for protected varieties. The DGT has determined that the 10% reduced rate applies to seeds and technological services if provided to holders of agricultural, forestry, or livestock holdings and are necessary for their operations.

The question raised

Applicable tax rate for the aforementioned operations.

The DGT's ruling

The 10% rate applies to the supply of seeds, bulbs, cuttings, and other plant products capable of reproduction, regardless of the identity of the acquirer. Likewise, the transfer of technology through royalties and grain conditioning services are taxed at 10% if they are carried out in favor of a holder of an agricultural, forestry, or livestock holding and are necessary for its development. Otherwise, or if the recipient is not a holder of such a holding, the general rate of 21% shall apply.

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