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V1010-14 9 April 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · recargo de equivalencia

Cannot apply equivalence surcharge in horticultural activity if products are manufactured

A professional horticultural consultant asks whether the VAT equivalence surcharge can be applied and which IRPF withholdings apply. The DGT responds that the equivalence surcharge cannot be applied in horticulture due to product manufacturing, and specifies the applicable retention rates based on activity type.

The question raised

1st: Whether the special equivalence surcharge regime of VAT may apply to agricultural activity.

The DGT's ruling

The equivalence surcharge regime is not applicable to nursery activities if the goods are produced by the owner themselves and are not delivered in the same condition in which they were acquired. For such activity, the special regime for agriculture, livestock, and fishing applies, unless there is an express waiver. Regarding Personal Income Tax (IRPF), income from professional and forestry activities is subject to withholding when the payer is an obligated party to do so.

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