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V1449-20 ·18 May 2020 ·consulta-vinculante Medium impact
Tax

Compensation for early termination of a service contract is not subject to VAT

A footballer enquired whether the damages owed to an agency following the early termination of a service contract were subject to VAT. The DGT ruled that such an amount does not constitute consideration for a service, but rather compensation for damages.

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Lifecycle

2020-05-18PublishedPublished 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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