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V0982-25 10 June 2025 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

Growth and sale of own production in place of production are exempt from IAE

The DGT confirms that cultivating and marketing vegetable seedlings carried out by the owner at their own place of production do not constitute a taxable event.

The question raised

It is asked whether the activity of cultivating and marketing plant seedlings of plant varieties is not subject to tax due to being an agricultural activity.

The DGT's ruling

Agricultural activities are not considered business activities and do not constitute a taxable event for the IAE. This exclusion includes the sale of products obtained from one's own farming operations carried out at the place of production. However, if materials other than products from one's own farming operations are sold, if they are sold outside the place of production, or if services are provided to third parties, such activities are indeed taxable.

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