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Practical Income Manual 2022.

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:

Work and accessory services provided by farmers, ranchers or owners of forestry activities that are excluded from the REAGP

These are considered to be those carried out by farmers, ranchers or owners of forestry activities to third parties with the means they ordinarily use on their own farms. Examples include, among others, the following:

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

  • The packaging and conditioning of products, including drying, cleaning, hulling, chopping, silage, storage and disinfection.

  • Technical assistance.

  • The rental 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 exploitation of irrigation or drainage facilities.

  • The felling, thinning, chipping and barking of trees, the cleaning of forests and other complementary forestry services of a similar nature.

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

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

The exclusion of accessory works and services from REAGP occurs in those cases in which the billing for all those carried out in the previous year ( 2021), including income from livestock breeding, guarding and fattening services, would have exceeded 20 percent of the total volume of operations of the main agricultural, livestock or forestry holding.

If in fiscal year 2021 the volume of operations of the accessory works and services did not exceed 20 percent of the total volume of operations of the main activity, the income derived from the performance of the aforementioned works and services does not constitute the object of the numbered activities. with keys 5 and 6, but will be included as a service differentiated from the agricultural or livestock activity (key 1) or forestry (key 2) developed.

Accessory activities carried out by farmers, ranchers or owners of forestry activities not included in the REAGP

This consideration 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.