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V1522-17 ·15 June 2017 ·consulta-vinculante Medium impact
Tax

VAT should not be charged to the party liable for the payment of legal costs due to their compensatory nature

A lawyer inquires whether VAT must be applied when collecting the court costs award imposed on the losing party. The DGT responds that the payment of costs constitutes compensation and not consideration for a service; therefore, there is no tax liability between the winning and losing parties.

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2017-06-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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