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V0489-25 ·25 March 2025 ·consulta-vinculante Low impact
Tax

Compensation for unused vacation pay in a labor subrogation is exempt from VAT

A company assuming workers through subrogation invoices the third party for the cost of unused vacation pay. The DGT states this amount is not a service provision but an indemnification, hence no VAT applies.

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2025-03-25PublishedPublished 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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