Doctrine by topic · DGT Observatory

Milling: evolution of DGT doctrine

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2023

Current position

The milling of olives without acquiring ownership of them is classified as a work execution. This provision of services is subject to the reduced VAT rate of 10% as it results in the immediate obtaining of oil. If the oil mill retains part of the oil as payment, such delivery is considered a delivery of goods that confers the status of a business owner.

The DGT's position remains constant in classifying milling without transfer of ownership as a work execution subject to 10% VAT. The evolution is limited to the clarification that the retention of oil as consideration constitutes a delivery of goods that requires registration in the Census of Business Owners.

Turning points

10 November 2022 V2334-22

Clarifies that the delivery of oil as consideration for the service constitutes a delivery of goods, conferring the status of a business owner upon the provider.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8

V2406-23 7 Sept 2023

0% VAT applies to maize and barley flour if suitable for breadmaking, or 10% if not

SG de Impuestos sobre el Consumo

harinas panificablestipo impositivoconsumo animalproductos naturalesmolturación LIVA — Ley 37/1992 del IVA art. 4.1LIVA — Ley 37/1992 del IVA art. 4.2

Affects CompanyExpat · Non-residentIndividual

V2334-22 10 Nov 2022

Requirement to register in the Business Census for supplying oil as consideration for milling services

SG de Tributos

censo de empresariosmolturaciónentrega de bienesrégimen especial de la agriculturarégimen simplificado LGT — Ley 58/2003 General Tributaria art. disposición adicional quinta.1LGT — Ley 58/2003 General Tributaria art. disposición adicional quinta.2

Affects CompanyExpat · Non-residentIndividual

V3275-20 4 Nov 2020

Olive milling services subject to 10% VAT and transformation constitutes a separate sector

SG de Impuestos sobre la Renta de las Personas Físicas

régimen especial de agriculturasector diferenciadomolturaciónejecución de obratipo reducido LIVA — Ley 37/1992 del IVA art. 90.1LIVA — Ley 37/1992 del IVA art. 91.1.1

Affects CompanyExpat · Non-residentIndividual

V1616-20 26 May 2020

Reduced VAT rate of 10% applies to olive grinding services on commission

SG de Impuestos sobre el Consumo

molturaciónejecución de obratipo reducidoprestación de serviciosaceite de oliva LIVA — Ley 37/1992 del IVA art. 11LIVA — Ley 37/1992 del IVA art. 88.1

Affects CompanyExpat · Non-residentIndividual

V1381-19 12 Jun 2019

Lump-sum compensation under the special agricultural regime applies to the selling price of olives

SG de Impuestos sobre el Consumo

compensación a tanto alzadorégimen especial de la agriculturaprecio de ventaproductos naturalesmolturación LIVA — Ley 37/1992 del IVA art. 130.3LIVA — Ley 37/1992 del IVA art. 130.5

Affects CompanyExpat · Non-residentIndividual

V2984-18 19 Nov 2018

Reduced VAT rate of 10% applies to olive milling services performed on commission

SG de Impuestos sobre el Consumo

molturaciónejecución de obratipo reducidopoder de disposiciónprestación de servicios LIVA — Ley 37/1992 del IVA art. 88.1LIVA — Ley 37/1992 del IVA art. 88.2

Affects CompanyExpat · Non-residentIndividual

V0137-15 19 Jan 2015

10% reduced VAT rate applies to olive milling services if ownership is not transferred

SG de Impuestos sobre el Consumo

molturaciónejecución de obratipo reducidopoder de disposiciónentrega de bienes LIVA — Ley 37/1992 del IVA art. 91.Uno.1.1ºLIVA — Ley 37/1992 del IVA art. 91.Uno.1.2º

Affects CompanyExpat · Non-residentIndividual

V1789-14 9 Jul 2014

Delivery of oil for self-consumption is subject to VAT if the farmer transfers the power of disposal of the olives

SG de Impuestos sobre el Consumo

molturaciónpoder de disposiciónautoconsumoprestación de serviciosentrega de bienes LIVA — Ley 37/1992 del IVA art. 4.1LGT — Ley 58/2003 General Tributaria art. 89.1

Affects CompanyExpat · Non-residentIndividual

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