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A company sought clarification on whether it could deduct VAT from a real estate brokerage commission set by a court ruling and whether IRPF withholdings should be applied. The DGT ruled that deduction requires an original invoice and that the commission constitutes professional income subject to withholding.
This ruling clarifies the tax treatment of court-ordered commissions, emphasizing the necessity of formal invoicing for VAT recovery and the obligation to apply income tax withholdings on professional services.
The tax team reviews your specific situation.
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