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V0332-23 ·20 February 2023 ·consulta-vinculante Medium impact
Tax

Profitability-based incentives or 'ratchets' are not subject to VAT

A query was raised regarding whether an incentive agreed upon in an investment agreement, based on the profitability achieved by other partners, is subject to VAT. The DGT ruled that it is not, as there is no provision of services nor an exchange of reciprocal considerations.

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2023-02-20PublishedPublished 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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