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Practical VAT manual 2023.

Requirements

It is applicable to the owners of agricultural, livestock, forestry or fishing farms, who have not renounced the application of this regime.

## The following are expressly excluded from the consideration of "holders of agricultural, forestry, livestock or fishing farms" for the purposes of this special regime:

  1. Owners of farms or operations who lease them or sharecrop them or who in any other way transfer their exploitation, as well as when they transfer the use of the resin from the pine trees located on their farms or operations.

  2. Those who run livestock farms under an integrated livestock farming regime.

Concept of agricultural, livestock, forestry or fishing exploitation

This is considered to be the case for those who directly obtain natural products, whether plant or animal, from their crops, farms or catches. Other activities include the cultivation of flowers, spices, seeds, etc., even in greenhouses; Livestock farming linked to land exploitation, including poultry farming, beekeeping, rabbit farming, sericulture and game breeding; forestry; freshwater fisheries; mollusc and crustacean farms and fish farms.

The following are considered to be included in the special regime accessory services that the owners of the farms provide to third parties with the means ordinarily used in their farms, provided that they contribute to the realization of the agricultural, forestry, livestock or fishing productions of the recipients. The services provided are considered to be accessory if during the previous year their value did not exceed 20 percent of the total volume of operations of the farm.

The following are considered accessory services, among others:

Planting, sowing, cultivation, harvesting and transportation; packaging and conditioning of products; the breeding, keeping and fattening of animals; technical assistance; leasing of tools and machinery; the elimination of harmful plants and animals; the operation of irrigation and drainage facilities; complementary forestry services such as felling, thinning, chipping and debarking of trees and forest clearing.