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V2086-20 ·23 June 2020 ·consulta-vinculante Medium impact
Tax

VAT deductibility and legal defence compensation depend on recipient status and business activity

An architect inquired whether they could deduct VAT on legal defence services paid by their insurer and how compensation for legal costs is taxed. The DGT ruled that VAT deductibility depends on the actual recipient of the service under the insurance contract, and that compensation for defence expenses constitutes income from professional activity.

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2020-06-23PublishedPublished 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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