Farmers excluded from the special regime must issue corrective invoices to pass on VAT

The transition from the special regime for farmers to the general VAT regime involves specific administrative management to ensure the correct passing on of this tax's amounts. Upon losing the status of a taxpayer under the special regime, the need arises to regularize operations carried out under a regime that no longer applies to them.

What the DGT has resolved

The Dirección General de Tributos (DGT) has clarified that an entrepreneur who loses the special regime status may pass on VAT amounts by issuing corrective invoices. For this procedure to be valid, the following requirements must be met:

• Four years must not have elapsed since the accrual of the operation.
• Corrective invoices must mandatory include the details of the receipts through which the compensations were unduly reimbursed.
• The entrepreneur is obliged to reimburse the unduly received compensations to the Administration by submitting Form 309.

It is important to highlight that, under this criterion, the farmer's client is not obliged to rectify their own receipts or modify their VAT deductions.

What it means for you

If your agricultural activity is no longer covered by the special regime, you become a taxpayer under the general VAT regime. This implies that operations that were previously exempt or subject to a simplified regime must now bear the corresponding VAT amount. The ruling allows this change to not result in an economic loss for the farmer, provided that corrective invoices are used to legally transfer the tax to the client.

What is advisable to do

In the event of a change in regime, it is necessary to perform an analysis of the operations pending regularization. You must verify that the four-year period has not expired for the operations you wish to rectify. Likewise, it is fundamental to ensure that the information contained in the corrective invoices matches the data from the receipts of the reimbursed compensations, to avoid discrepancies with the Tax Administration during an inspection.