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V3241-14 3 December 2014 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo reducido

Maize drying services provided by an agricultural cooperative to its members are subject to 10% VAT

An agricultural cooperative has requested clarification on the VAT rate applicable to the maize drying services it provides to its members. The Directorate-General for Taxes (DGT) has ruled that the reduced rate of 10% applies.

The question raised

Applicable tax rate.

The DGT's ruling

Corn drying operations carried out by an agricultural cooperative for its members who are holders of agricultural, forestry, or livestock holdings, which are necessary for the development of said holdings, are taxed at the reduced rate of 10%. To apply this rate, three requirements must be met: that the service is listed in the law, that it is performed in favor of a holder of a holding, that it is necessary for its development, and that it does not consist of the transfer of the use or enjoyment of assets.

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