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V1370-21 ·12 May 2021 ·consulta-vinculante Medium impact
Tax

Compensation for delays in construction works is not subject to VAT

A German branch has requested clarification on whether payments due for delays in completing a machinery works project are subject to VAT. The Directorate General for Taxes (DGT) has ruled that, as these payments constitute compensation for damages rather than consideration for a service, they are not subject to VAT.

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2021-05-12PublishedPublished 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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