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 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 obtained by applying 12% to the sale price of products obtained from agricultural or forestry farms and 10.5% to livestock and fishing farms.

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