What is the REAGP in Spain?
The simplified VAT regime in the agricultural sector, Also known as the Special Agriculture Regime, Livestock and fishing (REAGP), It is designed for Facilitate the tax management of agricultural operations, Livestock, Forest or fishing.
This regime releases agrarian professionals to present periodic VAT statements, although in return they must meet certain specific conditions and requirements.
VAT regime benefits in agriculture, Livestock and fishing.
One of the key characteristics of the Special Agriculture Regime, Livestock and fishing (REAGP) is that farmers, farmers and fishermen They are not obliged to have an impact, Liquidate or enter VAT for the sale of natural products obtained in their farms, nor for the transmission of investment goods used in their activity, except in the case of real estate.
This implies that VAT should not include the sale price, which significantly simplifies accounting and fiscal management. Besides, It is not required to carry a specific VAT accounting or issue ordinary invoice, except in concrete operations such as the sale of real estate. In most cases, It will be enough to deliver a simplified invoice signed by the buyer.
In return, This regime does not allow to deduce the VAT supported in the purchases or services associated with the activity. Instead, A raised compensation system is applied that acts as a partial refund of paid VAT. This compensation is from 12% For agricultural and forest products, and of 10,5% For livestock products, Fisheries and their accessories services.
Additionally, Many professionals host of the REAGP apply a reduced retention of the 2% by IRPF In your invoices, which is an additional benefit in your taxation.
Who is the REAGP applied to?
This regime is intended for agricultural farms holders, livestock or forestry who have not expressly renounced him nor are they excluded for other reasons.
Commercial societies are outside the REAGP, cooperatives and certain agricultural societies. Those who overcome the 250.000 euros per year in volume of operations or in acquisitions of goods and services not linked to the regime.
What formal and registration obligations have those who benefit from this regime?
Although professionals in the sector host of this regime have fewer tax obligations, They must still meet some formal requirements:
- OPERATIONS REGISTRATION: They must carry an income book where the operations carried out within the regime are recorded. If they carry out other activities, They must keep a separate record.
- Model 309: Although they do not have to present periodic VAT settlements, They must present the model 309 When they make intra -community acquisitions or certain specific operations such as the sale of real estate.
- Model 341: In case of exports or exempt intra -communication deliveries, They must request the reimbursement of compensation through the model 341.
Is there billing obligation in this special agricultural regime?
Agricultural operations are not obliged to issue invoices for the operations included in this regime, unless it is the sale of real estate. However, They must keep the payment receipts of the compensation issued by the buyers, since these documents are necessary to justify the perception of VAT compensation.
The simplified VAT regime for the agricultural sector seeks to reduce the administrative load of small and medium producers, exempting them from the normal tax settlement obligations, in exchange for applying a simplified compensation system. Nevertheless, It is important to comply with the formal and registration obligations to ensure that it operates within the fiscal regulations.
If you need help with the accounting and taxation of your agricultural exploitation, From Vázquez and Mancha we can help you with our fiscal specialists in the agricultural sector.
