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VAT practical manual 2021.

Simplified systems and agriculture, livestock farming and fisheries

Exclusive limits

Article 70 of Law 11/2020, of December 30, on the General State Budgets for the year 2021, with effect from January 1, 2021 and indefinite validity, modifies the thirteenth transitional provision of the Law of VAT in order to extend for the 2021 period the limits for the application of the simplified regime and the special regime for agriculture, livestock and fishing.

In this way, the applicable limits for fiscal year 2021 are the following:

In the case of the simplified regime, volume of income in the immediately preceding year:

  • Set of activities, except agricultural, forestry and livestock: 250,000 euros.

  • Agricultural, forestry and livestock activities: 250,000 euros.

In the case of REAGP , volume of income in the immediately preceding year:

  • Activities included in the REAGP: 250,000 euros.

  • Remaining activities: 250,000 euros.

In both regimes, the volume of acquisitions and imports of goods and services in the immediately preceding year, excluding those related to fixed assets: 250,000 euros.

Reduction in the number of tax periods affected by the waiver of the special simplified regime and special VAT regime for agriculture, livestock and fishing corresponding to the years 2020 and 2021

Taxpayers who had renounced the special simplified and agriculture, livestock and fishing regimes for the 2020 financial year may reapply these regimes in the 2021 or 2022 financial year.

Taxpayers who renounce the special simplified and agriculture, livestock and fishing regimes in 2021 will be able to re-apply these regimes in fiscal year 2022.

Deadlines for renunciations and revocations of the simplified and agriculture, livestock and fishing VAT regimes, for the year 2021

The waiver period to the simplified and agriculture, livestock and fishing regimes and the revocation thereof, which must take effect by 2021, is from December 24 to January 31, 2021.

The resignations and revocations presented for the year 2021 to the special simplified and agriculture, livestock and fishing regimes during the month of December 2020, prior to December 24, are understood to have been presented in a business period, and the option made within the period mentioned in the previous paragraph may be modified.

Payment on account corresponding to the first quarter of 2021

Entrepreneurs who carry out activities under the simplified regime other than agricultural, livestock and forestry activities may reduce by 20 the percentages for calculating the payment on account corresponding to the first quarterly installment of the 2021 financial year, established in number 3 of the Instructions for the application of the indices and modules in VAT of Annex II of Order HAC /1155/2020, of November 25.

This reduction will be 35 percent for retail trade, hospitality and transportation activities classified in the following headings of IAE : 653.2, 653.4 and 5, 654.2, 654.5, 654.6, 659.3, 663.1, 671.4, 671.5, 672.1, 2 and 3, 673.1, 673.2, 675, 676, 681, 682, 683 and 721 .1 and 3.