Simplified system for agriculture, livestock and forestry activities
The following activities are included in the simplified value added tax system:
Independent livestock farming.
Livestock breeding, storage and fattening services.
Other work, services and ancillary activities provided by farmers, stockbreeders and forest holders who are excluded or not included in the special scheme for agriculture, stockbreeding and fishing (REAGP).
Use corresponding to the transferor in agricultural and forestry activities carried out under sharecropping.
Processes of transformation, elaboration or manufacture of natural products.
These activities shall be excluded from the simplified scheme in the following circumstances:
The sum of income from these activities, plus agricultural, livestock and forestry activities listed on REAGP, must exceed 250,000 euros, not including current or capital subsidies or compensation, nor the VAT or, where applicable, the equivalence surcharge.In this case, the VAT liability will be calculated according to the general scheme.
In the case of the activities "Other work, services and ancillary activities carried out by farmers and/or stockbreeders who are excluded or not included in the REAGP", and "Other work, services and ancillary activities carried out by holders of forestry activities who are excluded or not included in the REAGP" will be excluded from this scheme if the total income attributable to them is greater than that corresponding to the agricultural and/or stockbreeding or forestry activities.
The other grounds for exclusion set out above also apply to them (see scope of application and waiver of the scheme).
Calculation of the tax liability derived from the simplified scheme for agricultural, livestock and forestry activities
For the calculation of the tax payable on current transactions, in the case of activities involving the supply of natural products or work, services and ancillary activities, the total volume of income , excluding subsidies, indemnities, as well as the VAT and, where applicable, the equivalence surcharge levied on the transaction, shall be multiplied by the "index of tax payable on current transactions" corresponding to the activity carried out.
In case the activity is the processing, working or manufacturing of natural products, the total volume of income shall be replaced by the value of the natural products used in the process, at market price.The allocation of the tax due for current operations in these activities will take place at the moment when the natural products are incorporated into the aforementioned preparation, transformation or manufacturing processes.Likewise, Order HAC/1155/2020 of 25 November establishes certain peculiarities with regard to products subject to these processes prior to 1 January 1998 and which are delivered as from 1 January 2021, as well as in the case of deliveries made under warehousing arrangements other than customs warehousing.
With regard to the deduction of input tax for current transactions, there is no speciality with respect to the other activities of the simplified regime.
In determining the tax liability under the simplified regime, it should be noted that there is no minimum tax liability and it will therefore be the difference between the tax payable and the tax borne on current transactions.
For the calculation of the payment on account to be made in the self-assessments corresponding to the first three quarters, the "rate of tax due for current operations" will be applied to the total volume of income for the quarter and a percentage determined for each activity in the Order approving the rates or modules for each financial year will be applied to the result.
In the first quarter of 2021, a farm in which neither the simplified scheme nor REAGP has been waived sells fruit to entrepreneurs for 80,000 euros, having provided livestock fattening services for third parties for 6,000 euros.In the remaining quarters, he only provides the above-mentioned services for 7,200, 7,800 and 6,600 euros respectively.In 2020, third-party livestock fattening activity exceeded 20% of the volume of operations of the agricultural activity.(The activity is therefore no longer considered to be included in the REAGP).
For the activities on REAGP, sale of fruit, you will receive the 12% compensation from the purchaser without having to make any liquidation, as we saw when talking about the special regime for agriculture, livestock and fishing.
For fattening services, VAT will be charged at the reduced rate, and the tax will be paid quarterly according to the volume of operations of each one of them.
The deductible input VAT on the activity of fattening livestock for third parties amounts to 1,000 euros.
|Quarter||Revenues||Table of contents(*)||Percentage(*)||Income a/c|
(*) Rate of fee to be paid and percentage appearing in Annex I of the Order HAC/1155/2020, of 25 November, for the activity of breeding, guarding and fattening of livestock.(activity:"other ancillary services and work carried out by farmers, stockbreeders or forest holders which are excluded from REAGP and services for rearing, keeping and fattening livestock, except poultry").
4th quarter:annual fee.
The final self-assessment for the year 2021 is submitted during the first thirty days of January 2022.
|Tax amount paid|
|27,600||x||0.10||2,760 euros||-1,027.60 euros||1,732.40 euros|
Income on account of the financial year:1,008 euros
To pay:724.4 euros
(1) (1,000 + 1% of 2,760)