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VAT practical manual 2022.

Calculation and reimbursement of compensation

Operations for which you have the right to receive compensation

  1. Deliveries of natural products obtained on their farms to other businessmen or professionals.

    For example, if the farmer sells fruit to individuals, in the course of his operation, he will not charge VAT nor can he receive compensation.

    By exception, the following are not entitled to receive this compensation:

    • When they sell to other businessmen covered by this regime.

    • When they sell to businessmen or professionals who exclusively carry out exempt operations without the right to deduction.

  2. Exempt intra-community deliveries of natural products to a legal entity that does not act as a businessman or professional.

  3. Provision of accessory services included in the special regime to businessmen or professionals.

    It does not apply if the recipient is also covered by this regime.

Amount of flat-rate compensation

In agricultural and forestry activities, 12 percent applies.

In livestock and fishing activities, 10.5 percent applies.

The indicated percentages are applied to the sales price of the products or services. Indirect taxes and accessory and complementary expenses charged separately to the purchaser, such as commissions, packaging, shipping, transportation, insurance, financial or others, are not computed.

Obliged to reimburse compensation

  1. As a general rule, the purchaser of the goods or recipient of the services.


    If a farmer sells on March 1 to a businessman established in the Balearic Islands for an amount of 2,000 euros, he has the right to receive a 12 percent compensation for the sale made to businessmen in Spanish territory from VAT , which must be reimbursed by the recipient of the purchase (2,000 x 12% = 240 euros). The recipient will issue a receipt that the farmer must sign and which serves as proof of the operation.

  2. The Public Treasury for intra-community exports or deliveries and for services provided to recipients established outside the territory of application of the tax.


    If the farmer sells products for an amount of 1,000 euros to a French businessman, he is making an exempt intra-community delivery, for which he has the right to request reimbursement of the corresponding compensation (1,000 x 12% = 120 euros), presenting form 341 during the first twenty calendar days following each calendar quarter, except for the last calendar quarter for which there is a deadline of January 30.

Formal requirement: receipt

To collect this compensation, the recipient must issue a receipt that must be signed by the taxable person covered by REAGP , to whom they must give a copy.

Data that must appear on the receipt:

  1. Series and number: The numbering will be correlative.

  2. Name and two surnames or company name, NIF and address of the sender and the recipient, as well as an indication that the owner of the holding is covered by the special regime for agriculture, livestock and fishing.

  3. Description of the goods delivered or services provided, as well as the place and date of the respective operations.

  4. Price of goods or services.

  5. Compensation percentage applied.

  6. Compensation amount.

  7. Signature of the owner of the agricultural, livestock, forestry or fishing operation.

With these requirements, the businessman who has paid the compensation, if the rest of the common conditions for deductions are met, can deduct it in his self-assessment.