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V2856-17 3 November 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo impositivo

21% VAT rate applies to services provided by a company to an agricultural cooperative

A query was raised regarding whether services provided by a company to an agricultural cooperative, which are subsequently invoiced to its members, could be taxed at the 10% rate. The DGT ruled that they must be taxed at 21% because the cooperative is not the holder of an agricultural holding.

The question raised

Tax rate applicable to the provision of services invoiced to the agricultural Cooperative.

The DGT's ruling

To apply the reduced rate of 10% on services necessary for agricultural, forestry, or livestock holdings, the provision must be made in favor of the holder of said holding. Since the agricultural cooperative is not the holder of a holding, the services it receives from a commercial entity are taxed at the general rate of 21%, even if they are carried out on the holdings of its members.

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