5.6.2 What it consists of

There is no obligation to pass on or settle and enter the VAT for the sale of natural products obtained from farms, nor for the delivery of capital goods used in this activity, other than real estate, except for imports of goods, intra-community acquisitions of goods and transactions with reversal of the taxable person.

In this regime, the contributions cannot be deducted. VAT supported in the activity. However, the tax incurred is recovered through agricultural compensation. Under this regime a flat- compensation is received on deliveries of natural products to other businesses 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 is based on a 12% tax on the sale price of products obtained from agricultural or forestry operations, and a 10.5% tax on livestock and fishing operations.

Compensation is generally reimbursed by the businessperson or professional who acquires the goods or services included in this regime.