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V2011-22 ·21 September 2022 ·consulta-vinculante Medium impact
Tax

Exact rebilling of insurance costs is considered an exempt transaction for VAT purposes

A company has requested clarification on whether rebilling the costs of insurance or guarantees contracted in its own name is subject to VAT. The Directorate General for Taxes (DGT) has determined that these do not qualify as disbursements (suplidos) because they are contracted in the company's own name; however, if the exact cost of the insurance is rebilled, the transaction is exempt from VAT.

In 6 key points

How it affects those involved

Companies rebilling insurance costs must ensure they charge the exact amount to maintain VAT exemption, as these transactions are not treated as disbursements.

Lifecycle

2022-09-21PublishedPublished 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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