Skip to content
V0430-22 ·3 March 2022 ·consulta-vinculante Medium impact
Tax

Compensation for theft, larceny or early termination is VAT-exempt, but failure to return machinery is not

A tool rental company has requested clarification on whether payments for theft, loss, early termination, or failure to return machinery are subject to VAT. The DGT has determined that compensation for loss or early termination does not constitute a taxable operation; however, if the client retains the machinery, the payment constitutes a supply of goods subject to VAT.

In 6 key points

Lifecycle

2022-03-03PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact