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V0145-25 ·12 February 2025 ·consulta-vinculante Low impact
Tax

Compensation for the early termination of a rural property lease agreement may not be subject to VAT depending on its nature

The DGT states that payment to a tenant for early termination of a pasture lease does not constitute a consideration for a VAT-taxable transaction.

In 6 key points

How it affects those involved

The payment of an indemnity for early termination of a pasture lease is not subject to VAT as it does not form part of a taxable supply.

Lifecycle

2025-02-12PublishedPublished 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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