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VAT practical manual 2021.

Calculation and reimbursement of compensation

Operations for which you are entitled to collect compensation

  1. Deliveries of natural products obtained on their farms to other business owners 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.

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

    • When they sell to other business owners who are covered by this regime.

    • When selling to entrepreneurs or professionals who exclusively carry out exempt operations without the right to deduction.

  2. Exempt intra-Community deliveries of natural products to a legal person who does not act as a businessman or professional.

  3. Provision of accessory services included in the special regime for entrepreneurs or professionals.

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

Amount of lump sum compensation

In agricultural and forestry activities, 12 percent applies.

In livestock and fishing activities, 10.5 percent is applied.

The percentages indicated apply to the sales price of the products or services. Indirect taxes and accessory and complementary expenses such as commissions, shipping, insurance, interest, etc. are not included.

Forced to repay compensation

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

    Example:

    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 compensation of 12% for the sale made to businessmen in Spanish territory of VAT , which must be reimbursed by the recipient of the purchase (2,000 x 12% = 240 euros). The recipient will issue a receipt that must be signed by the farmer and which serves as proof of the transaction.

  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.

    Example:

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

Formal requirement: receipt

To collect this compensation, the recipient must issue a receipt that must be signed by the taxpayer covered by REAGP , to whom a copy must be given.

Data that must appear on the receipt:

  1. Series and number: the numbering will be consecutive.

  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 farm 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. Amount of compensation.

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

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