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V1577-21 ·26 May 2021 ·consulta-vinculante Medium impact
Tax

Damages in lease agreements are not subject to VAT

The Ministry of Foreign Affairs consulted whether payments made to a landlord for property repairs and loss of profits are subject to VAT. The Directorate-General for Taxes (DGT) ruled that, as these constitute compensation for damages rather than consideration for a service, they are not subject to the tax.

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2021-05-26PublishedPublished 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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