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V2899-23 30 October 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · régimen especial de la agricultura, ganadería y pesca

Agricultural activity may qualify for the special VAT regime for agriculture, livestock and fishing

A query was raised regarding whether an individual taxed under the direct estimation method for Personal Income Tax (IRPF), due to activity incompatibility, can apply the special VAT regime for agriculture, livestock and fishing. The Directorate General for Taxes (DGT) ruled that being taxed under the direct estimation method for IRPF does not constitute grounds for exclusion from this special VAT regime.

The question raised

To determine whether agricultural activity may be taxed under the special regime for agriculture, livestock, and fishing of Value Added Tax.

The DGT's ruling

The fact that a business owner pays tax under the direct estimation method for Personal Income Tax (IRPF) does not, in principle, preclude the application of the special regime for agriculture, livestock, and fishing for Value Added Tax (VAT). The obligation to pay tax under the direct estimation method must not be confused with exclusion due to voluntary waiver of the objective estimation regime for Personal Income Tax (IRPF). The inquirer may apply this special VAT regime provided that none of the grounds for exclusion provided for in Article 124 of Law 37/1992 occur.

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