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V1438-20 ·14 May 2020 ·consulta-vinculante Medium impact
Tax

VAT deduction not permitted on legal fees paid as court costs compensation

A lawyer has enquired whether they should receive an invoice from the opposing legal counsel and procurators, and whether they can deduct VAT from the compensation paid for court costs. The DGT has ruled that the payment of court costs constitutes compensation rather than consideration; therefore, the right to VAT deduction and the issuance of an invoice belong to the party receiving the funds.

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2020-05-14PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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