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Practical manual for Income Tax 2021.

Activity 6: Other work, services and accessory activities carried out by owners of forestry activities, which are excluded or not included in the special VAT regime for agriculture, livestock and fishing (REAGP)

Each of these activities, which are configured as independent for the purposes of applying the objective estimation method, includes the following areas or sectors:

Ancillary work and services provided by farmers, ranchers or forestry activity owners that are excluded from the REAGP

This is considered to be the work carried out by farmers, ranchers or owners of forestry activities to third parties using the means they normally use on their own farms. Examples include, but are not limited to:

  • The tasks of planting, sowing, cultivation, harvesting and transportation.

  • Packaging and conditioning of products, including drying, cleaning, peeling, cutting, ensiling, storage and disinfection.

  • Technical assistance.

  • The leasing of tools, machinery and facilities normally used to carry out agricultural or livestock activities.

  • The elimination of harmful plants and animals, and the fumigation of plantations and land.

  • The operation of irrigation or drainage facilities.

  • The felling, thinning, chipping and debarking of trees, forest clearing and other similar complementary forestry services.

The accessory requirement determining their inclusion in the objective estimation method is conditioned on the amount obtained from carrying out said work or services, together with that of the accessory activities discussed below, being lower than that corresponding to the main agricultural, livestock and forestry activities.

Otherwise, since the accessory requirement is lacking, said works and services are not considered included in the objective estimation method.

The exclusion of accessory work and services from the REAGP occurs in those cases in which the billing for all work carried out in the previous year (2020), including income from livestock breeding, keeping and fattening services, has exceeded 20% of the total volume of operations of the main agricultural, livestock or forestry holding.

If in the 2020 financial year the volume of operations of accessory works and services did not exceed 20% of the total volume of operations of the main activity, the income derived from the performance of said works and services is not the subject of the activities numbered with keys 5 and 6, but will be included as a separate service from the agricultural or livestock activity (key 1) or forestry (key 2) carried out.

Ancillary activities carried out by farmers, ranchers or holders of forestry activities not included in the REAGP

This category includes agrotourism, crafts, hunting and fishing, as well as other recreational and leisure activities in which the farmer, rancher or owner of the forestry activity participates as a monitor, guide or expert.

If the aforementioned activities are accessory to the main activity in the sense discussed above, as they are not included in the special regime for agriculture, livestock and fishing of VAT , They will always and in all cases declare in activity codes numbers 5 or 6, as appropriate.