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V0389-22 ·28 February 2022 ·consulta-vinculante Medium impact
Tax

Exact rebilling of insurance costs is both taxable and exempt from VAT if treated as an independent service

An IT support company has queried whether the insurance coverage included in its services and rebilled to clients is subject to VAT. The DGT has determined that this does not constitute a disbursement and that its tax treatment depends on whether it is considered an independent service or an ancillary part of the main service.

In 6 key points

How it affects those involved

Companies rebilling third-party costs must distinguish between disbursements and independent services to correctly apply VAT rules.

Lifecycle

2022-02-28PublishedPublished 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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