Skip to content
Back to index
V2963-19 24 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
OTRO · ganadería integrada

Integrated livestock farming is exempt from IAE and may use the simplified VAT regime if no services are provided to third parties

A taxpayer has requested clarification regarding the tax implications of starting a livestock breeding, rearing, and fattening activity. The DGT clarifies that integrated livestock farming does not constitute an economic activity for IAE purposes; however, if vaccination or loading services are provided to other farms, the activity must be taxed under the general VAT regime and the direct estimation method for IRPF.

The question raised

Impact on IAE, VAT, and IRPF of the described facts.

The DGT's ruling

The integrated livestock farming activity does not constitute a taxable event for the IAE (Economic Activities Tax) as it is dependent livestock farming. Vaccination and loading/unloading services on third-party farms do constitute an economic activity (IAE group 911). If both types of services are performed, the taxpayer must pay tax under the general VAT regime and under the direct estimation method for IRPF (Personal Income Tax), due to incompatibility with the objective estimation method.

Book your free first meeting