Simplified system for agriculture, livestock and forestry activities

The following activities are included in the simplified regime of Value Added Tax:

• Independent livestock farming.

• Livestock breeding, keeping and fattening services.

• Other work, services and accessory activities provided by farmers, ranchers and owners of forestry farms that are excluded or not included in the special regime for agriculture, livestock and fishing.

• Benefits that correspond to the transferor in agricultural and forestry activities carried out under a sharecropping regime.

• Processes of transformation, elaboration or manufacturing of natural products.

These activities will be excluded from the simplified regime when the following circumstances occur:

• That the sum of income from these activities, plus agricultural, livestock and forestry activities that are in the REAGP , exceeds 250,000 euros, without including current or capital subsidies, or compensation, as well as nor the VAT nor, where applicable, the equivalence surcharge. In this case, the VAT amount will be calculated according to the general regime.

• In the case of the activities "Other work, services and accessory activities carried out by farmers and/or ranchers that are excluded or not included in the REAGP" and "Other work, services and accessory activities carried out by holders of forestry activities that are excluded or not included in the REAGP", they will be excluded from this regime if the total income attributable to them is greater than that corresponding to agricultural and/or livestock or forestry activities.

Likewise, the other causes of exclusion set out above apply to them (see sections scope of application and waiver of the simplified regime).

Calculation of the quota derived from the simplified regime in agricultural, livestock and forestry activities

To calculate the fee accrued for current operations, in the case of activities in which the delivery of natural products or accessory work, services and activities is carried out, the total volume of income will be multiplied , excluding subsidies, compensation, as well as VAT and, where applicable, the equivalence surcharge that taxes the operation, for the "accrued quota index for current operations» that corresponds to the activity carried out.

In the event that the activity is the transformation, elaboration or manufacture of natural products, the total volume of income will be replaced by the value of the natural products used in the process , at market price. The imputation of the accrued quota for current operations in these activities will occur at the time when the natural products are incorporated into the aforementioned production, transformation or manufacturing processes. Likewise, Order HFP /1359/2023, of December 19, establishes certain peculiarities regarding products subject to said processes prior to January 1, 1998 and which are subject to delivery as of January 1, 2024, as well as in the case of deliveries made under a deposit regime other than customs.

Regarding the deduction of the quotas supported by current operations, there is no specialty with respect to the other activities of the simplified regime.

In determining the quota derived from the simplified regime, it should be noted that there is no minimum quota and therefore it will be the difference between accrued quotas and quotas borne by current operations.

To calculate the advance payment to be made in the self-assessments corresponding to the first three quarters, the "index of accrued quota for current operations" will be applied to the total volume of income for the quarter and the result will be applied to a percentage determined for each activity in the Order approving the indexes or modules for each year.

Example:

In the first quarter of 2024, a farm that has not renounced the simplified regime or the REAGP sells fruit to entrepreneurs for an amount of 80,000 euros, having provided third-party livestock fattening services for an amount of 6,000 euros. In the remaining quarters, it only provides the services indicated for amounts of 7,200, 7,800 and 6,600 euros, respectively. In 2023, third-party cattle fattening activity exceeded 20% of the volume of agricultural activity operations. (Therefore, the activity is no longer considered to be included in the REAGP).

For activities in REAGP, fruit sales, the buyer will receive a 12% compensation without having to make any settlement, as we saw when discussing the special regime for agriculture, livestock and fishing.

For fattening services, VAT will be charged at the reduced rate, and the Tax must be settled quarterly based on the volume of operations of each of them.

The deductible input VAT installments in the third-party livestock fattening service activity amount to 1,000 euros.

(*) Rate of quota to be paid and percentage listed in Annex I of Order HFP/1359/2023, of December 19, for the activity of livestock breeding, keeping and fattening services. (Activity: "other accessory work and services performed by farmers, ranchers or forestry activity holders that are excluded from REAGP and livestock breeding, keeping and fattening services, except poultry").

4th quarter: annual quota.

The final self-assessment for the year 2024 must be submitted during the first thirty days of January 2025.

Income on account for the year: 1.008 euros

To pay: 724.4 euros

⁽¹⁾ (1,000 + 1% of 2,760)