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V2524-20 23 July 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

10% reduced VAT rate applies to crop harvesting when provided to an agricultural entrepreneur

A taxpayer has requested clarification on the VAT rate applicable to orange harvesting services. The DGT has ruled that the 10% reduced rate applies if the client is an entrepreneur holding an agricultural holding and the service is necessary for its operations.

The question raised

VAT rate applicable to the described services.

The DGT's ruling

Harvesting services are taxed at a 10% VAT rate if provided to entrepreneurs holding agricultural, forestry, or livestock holdings and are necessary for their development. To be considered an entrepreneur, it is sufficient to carry out the activity of organizing production factors, without the need for registration in the census or the IAE. If the recipient does not hold the status of an entrepreneur holding the holding, the general rate of 21% shall apply.

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