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V3197-18 14 December 2018 · SG de Tributos Locales Criterion in force
OTRO · actividad económica

Livestock farming for self-consumption is not subject to the Tax on Economic Activities

A query is made as to whether a livestock facility intended for domestic self-consumption constitutes an economic activity subject to tax. The DGT responds that it does not, as the requirement to produce or distribute goods or services is not met.

The question raised

Question posed: It is desired to know whether it is considered an economic activity and, therefore, is subject to the Tax on Economic Activities.

The DGT's ruling

For an activity to be economic and constitute a taxable event, it must involve the organization on one's own account of means of production or human resources with the purpose of producing or distributing goods or services. In the case of activities oriented towards self-consumption, although means are organized, the indispensable requirement of the production or distribution of goods and services is not met. Therefore, livestock farming for self-consumption does not constitute a taxable event for the tax.

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