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Manual of economic activities.Fiscal duties of employers and resident professionals in Spanish territory

5.6.2 What does it consist in?

There is no obligation to charge VAT on sales of natural products obtained on the holding or on deliveries of capital goods used in this activity, other than immovable property, except for imports of goods, intra-EU acquisitions of goods and reverse charge transactions.

Under this regime, VAT paid on the activity cannot be deducted.However, input tax is recovered through agricultural offsets.In this system, a compensation is received as a lump sum on deliveries of natural products for other businesses not attached to this system, which do not exclusively perform exempt transactions internally.Also for intra-Community supplies to legal persons who are not entrepreneurs and for the supply of services covered by the REAG and P.

The compensation results from applying 12% to the selling price of products obtained in agricultural or forestry holdings and 10.5% in livestock and fishery holdings.

Compensation is generally refunded by the trader or professional acquiring the goods or services covered by this scheme.