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V0095-25 ·5 February 2025 ·consulta-vinculante Low impact
Tax

Determination of whether contractual penalties reduce the VAT taxable base

The DGT states that penalties with coercive function to ensure compliance are considered price reductions and must reduce the VAT base.

In 6 key points

How it affects those involved

Penalties that serve a coercive purpose in tourism service contracts are treated as price reductions for VAT purposes.

Lifecycle

2025-02-05PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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