Non-application of the special system

The special regime for agriculture, livestock and fishing will not apply:

1. To those who are not the owners of these farms , as seen in the previous section " Requirements ".

2. Excluded activities. The special regime cannot be applied to the following activities:

   1. When natural products are transformed, processed or manufactured.

      Acts of mere conservation such as: pasteurization, freezing, drying, cleaning, peeling, cutting, disinfection, etc.; nor the obtaining of agricultural raw materials that do not require the slaughter of livestock.

   2. When the products obtained are sold mixed with other products purchased from third parties, unless they are merely preservatives.

   3. When the products are sold in fixed establishments located outside the farms or in establishments where the taxpayer also carries out other economic activities.

   4. Recreational or sporting hunting operations.

   5. Sea fishing.

   6. Independent livestock farming.

   7. Provision of accessory services not included in the regime.

      Activities excluded from this regime (such as independent livestock farming; breeding, keeping and fattening of cattle; excluded accessory services) may be taxed under the simplified regime.

3. Excluded taxpayers. This regime cannot be applied by:

   1. Trading companies.

   2. Cooperative companies and agricultural trading companies.

   3. Those who have carried out operations related to the activities included in this regime in the previous year for an amount greater than 250,000 euros and those who exceed, for all operations other than those included in this regime during the previous year, 250,000 euros.

      The determination of the trading volume will be carried out in accordance with the following rules:

      • In operations subject to the special regime for agriculture, livestock and fishing and the simplified regime for all agricultural, forestry and livestock activities that are determined, only those that must be recorded in the registration books will be computed.

      • In operations subject to other special regimes or the general regime, they will be computed according to the provisions of article 121 of the VAT Law . Real estate leasing operations whose execution involves the development of an economic activity will not be computed in the IRPF .

   4. Business owners or professionals who have waived the application of the objective estimation regime of the Personal Income Tax for any of their economic activities.

   5. Businesses or professionals that have waived the application of the simplified regime.

   6. Those businessmen or professionals whose purchases and imports of goods and services for all their business or professional activities have exceeded 250,000 euros annually in the previous year, VATexcluded (the acquisitions of fixed assets).

4. Resignation from the special regime.

   The practice of deductions from the fees borne or paid before the start of the usual delivery of goods or provision of services is equivalent to waiver.

   In general, the waiver must be made through the corresponding census declaration (form 036 or 037), it has a minimum validity of three years and will be understood to be extended for each of the following years in which the regime may be applicable, unless it is expressly revoked in the month of December prior to the beginning of the calendar year in which it must take effect.

   The waiver is deemed to have been made upon submission within the deadline of the self-assessment corresponding to the first quarter of the calendar year in which it must take effect or the first declaration that must be submitted after the start of the activity applying the general regime.