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V1158-18 8 May 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · derechos de pago básico

Assignment of basic payment rights alongside land leasing follows the tax regime of the land

The taxpayer asks whether the assignment of CAP payment rights, alongside the leasing of rural estates, is subject to VAT. The DGT rules that if the assignment of rights accompanies the assignment of eligible hectares, it is considered an ancillary supply and follows the tax treatment of the land.

The question raised

Liability for Value Added Tax in the event of the assignment of such rights alongside the leasing of land.

The DGT's ruling

The assignment of payment rights, whether through lease or definitive sale, when accompanied by the assignment of an equivalent number of eligible hectares, is considered an ancillary supply. Therefore, it shall follow the same tax regime as the principal land assignment operation, applying the exemptions under article 20.one.20º or 23º of Law 37/1992 as applicable. To determine whether it constitutes a single supply or several, it must be analyzed whether the rights constitute an end in themselves for the client or merely a means to enjoy the principal service.

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