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Special Agricultural Regime: DGT doctrinal evolution

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 72 rulings · 2014–2026

Current position

The special regime for agriculture, livestock, and fishing is excluded when there is a transformation of natural products, such as in the manufacture of flour or the production of compost. The transfer of rural land is taxed under the general VAT (IVA) regime, generally being an exempt operation. In the event of exclusion due to exceeding turnover volume limits, the taxpayer may recover the special regime if they meet the requirements again in the following year.

The DGT's position remains constant in delimiting agricultural activity versus industrial activity. Through consultations, it is confirmed that any transformation process, such as the production of compost or flour, shifts the taxpayer toward the simplified regime. No changes in criterion are observed, but rather a coherent application of the exclusion due to transformation and the management of volume limits.

Turning points

  1. V2155-19

    Establishes that insurance payouts for losses are not considerations subject to VAT (IVA) and do not generate a right to lump-sum compensation.

  2. V2388-22

    Clarifies that the transfer of rural land does not fall under the special VAT (IVA) regime, but under the general regime with the applicable exemption.

  3. V1359-26

    Defines that the process of generating compost through the mixing of materials constitutes a transformation that excludes the activity from the special regime.

Analysis based on 67 of 72 rulings with a stated position. Updated 21 September 2026.

Rulings on this topic

24
V0679-25 15 Apr 2025

IVA compensation in agricultural special regime not counted as income

SG de Impuestos sobre la Renta de las Personas Físicas
estimación objetivavolumen de ingresosrégimen especial de la agriculturacompensación del IVAactividades agrarias Orden HFP/1347/2024RIRPF — RD 439/2007, Reglamento del IRPF art. 68
Affects CompanyExpat · Non-residentIndividual
V0375-25 20 Mar 2025

IVA special regime compensation not counted in IRPF income threshold

SG de Impuestos sobre la Renta de las Personas Físicas
estimación objetivavolumen de ingresosrégimen especial de la agriculturacompensación del IVAactividades agrarias Orden HFP/1347/2024LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V2602-22 21 Dec 2022

Farmer compensation deduction may be applied proportionally to the amount paid

SG de Impuestos sobre el Consumo
régimen especial de la agriculturacompensación a tanto alzadoreintegro de compensacionesdeducción de cuotasrecibo de compensación LIVA — Ley 37/1992 del IVA art. 130LIVA — Ley 37/1992 del IVA art. 134
Affects CompanyExpat · Non-residentIndividual
V2494-22 2 Dec 2022

Special agricultural tax regime applicable to online citrus fruit sales

SG de Impuestos sobre la Renta de las Personas Físicas
régimen especial de la agriculturaventas a distancia intracomunitariasinterfaz digitalrégimen de la Uniónumbral de ventas LIVA — Ley 37/1992 del IVA art. 8.3LIVA — Ley 37/1992 del IVA art. 28
Affects CompanyExpat · Non-residentIndividual

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