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V3373-15 2 November 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · régimen especial de la agricultura, ganadería y pesca

VAT regime and IRPF objective estimation method depend on the nature of livestock activity

A taxpayer has enquired about the applicable VAT and IRPF regimes upon acquiring a poultry farm for egg production. The DGT clarifies that the VAT regime will depend on whether the activity is considered independent livestock farming and how the objective estimation method applies to IRPF.

The question raised

1st.- VAT taxation regime.

The DGT's ruling

Regarding VAT, if livestock farming is independent (when livestock is fed with more than 50% of feed not produced on the farm), the special regime for agriculture, livestock, and fishing does not apply, but rather the simplified regime. If the special regime applies, producers have no obligations for settlement or collection regarding sales of natural products. Regarding Personal Income Tax (IRPF), the objective estimation method shall be applicable if VAT is taxed under either of the two aforementioned special regimes and the income or purchase volume limits are met.

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