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V1648-20 ·27 May 2020 ·consulta-vinculante Medium impact
Tax

Compensation for withdrawal or suspension of public contracts is not subject to VAT

A local council has requested clarification on whether payments made to contractors for the withdrawal or suspension of works, supply, or service contracts under Law 9/2017 are subject to VAT. The Directorate-General for Taxes (DGT) has ruled that these payments do not constitute consideration for services, but are instead compensation for damages.

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2020-05-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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