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V2415-17 27 September 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · régimen especial de la agricultura, ganadería y pesca

No obligation to repay VAT compensations in livestock sales between farmers under the special scheme

A query was raised regarding whether VAT compensations under the special scheme for agriculture, livestock, and fisheries (REAGP) are subject to repayment when goats are sold between farmers under the same scheme. The Directorate-General for Taxes (DGT) ruled that there is no obligation to repay compensations if the purchaser is another taxable person under the same scheme who uses the products for their business activity.

The question raised

1st Whether the compensation of the REAGP of the VAT is applicable.

The DGT's ruling

In the sale of natural products from livestock farms carried out by entrepreneurs under the special regime, when the acquirer is another entrepreneur subject to the same regime within the territory of VAT application and uses the products in their activity, this acquirer shall not be obliged to effect the reimbursement of the compensations provided for in Law 37/1992.

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