5.6.2 What it consists of

There is no obligation to pass on or to liquidate and pay VAT for the sales of natural products obtained on farms, nor for the deliveries of investment goods used in this activity, which are not real estate, except for imports of goods, intra-community acquisitions of goods and operations with reversal of the taxable person.

In this regime, the VAT contributions incurred in the activity cannot be deducted. However, the tax paid is recovered through agricultural compensation. In this regime, a flat-rate compensation is received for deliveries of natural products to other entrepreneurs not covered by this regime and who do not exclusively carry out exempt domestic operations. Also in intra-community deliveries to non-business legal entities and in the provision of services included in REAG and P .

The compensation results from applying 12% on the sales price of products obtained from agricultural or forestry farms and 10.5% from livestock and fishing farms.

Compensation is reimbursed, in general, by the businessman or professional who acquires the goods or services included in this regime.