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V1726-23 15 June 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Objective estimation for IRPF and special VAT regime for agriculture applicable after exclusion period

A taxpayer performing agricultural services under the direct estimation method and general VAT regime inquires whether they can switch to objective estimation and join the special agricultural VAT regime. The DGT rules that, once the three-year exclusion period has elapsed, the change is permissible provided that the turnover and acquisition limits are met.

The question raised

1st.- Whether the net yield of the agricultural activity can be determined by the objective estimation method and whether VAT can be taxed under the special regime for agriculture, livestock, and fishing.

The DGT's ruling

In Personal Income Tax (IRPF), following the exclusion from the direct estimation method, a period of three years must elapse before the objective estimation method can be applied to a new activity. Regarding VAT, it is possible to opt for the special regime for agriculture, livestock, and fishing if the ownership requirements are met and the limits for turnover or acquisitions are not exceeded. If there is a change from the general regime to the special regime, the investment goods quotas previously incurred must be regularized by applying a pro rata of zero during the period in which the special regime is applied.

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