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V1870-20 10 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · régimen especial de la agricultura, ganadería y pesca

Pollination services may qualify for the special VAT regime for agriculture, livestock and fishing

A beekeeper has requested clarification on how to tax flower pollination services. The Tax Agency has responded that, if these services are ancillary to beekeeping and meet certain thresholds, they are included in the special VAT regime for agriculture, livestock and fishing.

The question raised

VAT and Personal Income Tax (IRPF) taxation of pollination services, whether performed as an ancillary activity of beekeeping or whether they become the main activity.

The DGT's ruling

Pollination services are considered cultivation services and may be integrated into the special VAT regime for agriculture, livestock, and fishing if they are ancillary to the main business activity and do not exceed 20% of its volume of operations. In this case, the beekeeper is entitled to the flat-rate compensation of 10.5%. If the services exceed that 20% or the volume of beekeeping income, they will be taxed under the simplified or general VAT regime at a rate of 10% if provided to farmers or livestock breeders.

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