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VAT
Reporting obligation for agricultural and forestry side activities
Agricultural and forestry operators may carry out a range of self‑employed "additional activities" in connection with their farming business, for which they do not need a trade licence within certain limits. Operators who carry out such agricultural and forestry side activities must report their annual gross income (including VAT and without deduction of expenses) to the Social Insurance Institution for the Self‑Employed (SVS) by no later than 30 April 2025.
These earnings are subject to a separate contribution obligation in social insurance. If the income is not reported on time, a contribution surcharge of 5% is imposed on the total contribution due. The reporting obligation covers side activities such as direct marketing of processed and manufactured products, the operation of a cider press bar or "farm‑stay holidays". For these activities there is a allowance of EUR 3,700 per year, which is deducted from the reported gross income. Services such as draught‑animal work, the hiring and leasing of riding animals (e.g. pension horse keeping) and services between agricultural and forestry holdings (e.g. machine‑ring services) are subject to contributions from the first euro.
Direct and straightforward reporting
If the side activity is already known to the SVS, the report can be made directly and straightforwardly online. For the first registration of a new side activity, a report to the SVS must be made within one month of the start of the activity. This applies regardless of whether the activity is carried out by the operator themselves or by family members employed full‑time in the business on behalf of the operator.
Application for the "small option"
In addition, operators have until 30 April of the following year to submit an application for the so‑called "small option". With this option, social‑insurance contributions can be calculated on the basis of the actual income shown in the income‑tax assessment, rather than by a flat‑rate calculation. The option applies for at least one contribution year and can be revoked each year by 30 April.
For companies and corporations that commission agricultural side activities, there is a duty to provide information to the SVS. On request by the SVS they must, within two weeks, supply details about the commissioned agricultural operation, including the name and address of the contractor, the type of service provided and the remuneration.
Timely reporting is crucial to ensure that contributions can be calculated correctly. If the reporting of income from agricultural (forestry) side activities to the SVS by the operator is not made on time, a contribution surcharge of 5% of the total contribution due is mandated.
Direct and straightforward reporting
If the side activity is already known to the SVS, the report can be made directly and straightforwardly online. For the first registration of a new side activity, a report to the SVS must be made within one month of the start of the activity. This applies regardless of whether the activity is carried out by the operator themselves or by family members employed full‑time in the business on behalf of the operator.
Application for the "small option"
In addition, operators have until 30 April of the following year to submit an application for the so‑called "small option". With this option, social‑insurance contributions can be calculated on the basis of the actual income shown in the income‑tax assessment, rather than by a flat‑rate calculation. The option applies for at least one contribution year and can be revoked each year by 30 April.
For companies and corporations that commission agricultural side activities, there is a duty to provide information to the SVS. On request by the SVS they must, within two weeks, supply details about the commissioned agricultural operation, including the name and address of the contractor, the type of service provided and the remuneration.
Timely reporting is crucial to ensure that contributions can be calculated correctly. If the reporting of income from agricultural (forestry) side activities to the SVS by the operator is not made on time, a contribution surcharge of 5% of the total contribution due is mandated.