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V0153-20 ·21 January 2020 ·consulta-vinculante Medium impact
Tax

Penalties for service level breaches must reduce the VAT taxable amount

A company providing back-office services must pay penalties to its clients for errors or delays in quality. The DGT has determined that these penalties are not independent indemnities, but rather act as a reduction in the price of the service.

In 6 key points

Lifecycle

2020-01-21PublishedPublished 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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