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V1049-14 ·14 April 2014 ·consulta-vinculante Medium impact
Tax

Contributions to compensate for unpaid fees from other owners are not subject to VAT

A property management entity inquired whether contributions made by owners to cover the non-payment of other members are subject to VAT. The Directorate General for Taxes (DGT) ruled that, as these do not constitute consideration for services, no taxable transaction exists.

In 6 key points

How it affects those involved

This ruling clarifies that internal contributions intended to cover deficits caused by defaulting members do not trigger VAT, provided they are not linked to a specific service provided to the contributing members.

Lifecycle

2014-04-14PublishedPublished 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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