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V1730-19 ·9 July 2019 ·consulta-vinculante Medium impact
Tax

VAT should not be applied to compensation for vehicle downtime in transport

A transport company has requested clarification on whether VAT should be applied when invoicing for time spent waiting during cargo loading. The Directorate-General for Taxes (DGT) has ruled that such an amount does not constitute consideration for a service, but rather compensation, which is not subject to VAT.

In 6 key points

How it affects those involved

This ruling clarifies that payments received for vehicle downtime or delays do not qualify as taxable services, preventing unnecessary VAT charges on compensation claims.

Lifecycle

2019-07-09PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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