Non-application of the special system

The special scheme for agriculture, livestock and fisheries shall not apply:

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

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

   1. Where natural products are processed, worked or manufactured.

      Acts of mere conservation, such as:pasteurisation, freezing, drying, cleaning, dehulling, chopping, disinfection, etc;or the procurement of agricultural raw materials which 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 away from the holdings or in establishments where the taxable person also carries out other economic activities.

   4. Recreational or sporting hunting operations.

   5. Sea fishing.

   6. Independent livestock farming.

   7. Provision of ancillary services not covered by the scheme.

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

3. Excluded taxable persons.They cannot apply this regime:

   1. Trading companies.

   2. Cooperative companies and agricultural trading companies.

   3. Those who have carried out transactions relating to the activities included in this scheme in the previous year for an amount exceeding 250,000 euros and those who exceeded, for all transactions other than those included in this scheme during the previous year, 250,000 euros.

      The determination of the volume of transactions shall be made 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 to be determined, only those that must be recorded in the registry books will be computed.

      • In transactions subject to other special schemes or to the general scheme, they shall be computed in accordance with the provisions of Article 121 of the Law on VAT.Leasing transactions involving the leasing of real estate which involve the development of an economic activity shall not be included in the IRPF.

   4. Entrepreneurs or professionals who have waived the application of the objective assessment system of Personal Income Tax for any of their economic activities.

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

   6. Those entrepreneurs or professionals whose acquisitions and imports of goods and services for the whole of their business or professional activities have exceeded 250,000 euros per year in the previous year, VAT excluded (fixed asset acquisitions are not taken into account).

4. Waiver to the special regime.

   Deductions of input tax paid or paid before the commencement of the normal performance of the supply of goods or services are equivalent to a waiver.

   In general, the waiver must be made by means of the corresponding census declaration (form 036 or 037), is valid for a minimum 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 start of the calendar year in which it is to take effect.

   The waiver is deemed to have been made with the timely filing of the self-assessment corresponding to the first quarter of the calendar year in which it is to take effect or of the first return to be filed after the start of the activity applying the general system.