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V0920-16 ·10 March 2016 ·consulta-vinculante Medium impact
Tax

Free 'pro bono' legal services are not subject to VAT if they serve business purposes

A law firm inquired whether its free advisory and training services provided to non-profit entities are subject to VAT. The DGT ruled that, as they aim to promote the firm and attract talent, these services serve business purposes and do not constitute self-consumption.

In 5 key points

How it affects those involved

This ruling clarifies that pro bono work intended for brand promotion or recruitment is considered a business activity rather than a non-taxable gift or self-consumption, potentially affecting how firms account for VAT on such activities.

Lifecycle

2016-03-10PublishedPublished 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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