Skip to content
V0692-23 ·22 March 2023 ·consulta-vinculante Medium impact
Tax

Variable incentives for legal costs awards are subject to VAT and allow for tax base rectification

A local council consulted whether the variable amount of a legal services contract, based on the recovery of court costs, was subject to VAT. The DGT ruled that it is subject to VAT and that, since the exact amount is unknown at the time of accrual, a provisional tax base must be established and subsequently rectified once the actual amount is known.

In 6 key points

Lifecycle

2023-03-22PublishedPublished 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