Services rendered within the scope of an agricultural and forestry business are subject to taxation at average rates pursuant to Section 24 of the VAT Act if they are provided by an agricultural producer with the help of the labor force of his farm and the services normally contribute to agricultural and forestry production. The assets used, if any, must be part of the normal equipment of the agricultural and forestry business. From the BFH rulings of August 24, 2017, V R 8/17, n. v., and September 6, 2018, V R 55/17 n. v., it follows that taxation of a service under Section 24 UStG is ruled out, if the farmer or forester, in the course of providing the service, uses labor (of the farmer or his of his staff), which is not normally used in his own business, or uses equipment, such as machinery, etc., that is not part of the normal equipment of the farm business.
Source: bundesfinanzministerium.de
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